Ask HN: Corporate structure for software development?
I am writing some software which I hope I can sell for a profit. However, I am concerned about the possibility of being sued. Thus I would like to form a corporation of some sort to protect myself. What should I choose in terms of legal complexity and taxation? (LLC, LLP, S, etc) Also, where should I incorporate in? Keep in mind and it is just myself and I do not plan to sell the company (although I may sell the copyright to the software).
2 comments
LLC works for me while talking to angels but, like noodle says, VC's will want the tried and true C corp.
I incorporated in my home state of Texas after consulting with an atty. Don't just go for the hype or advice from these boards after this state or that state: spend the money now on an attorney to set it up right so that you don't have to spend the time and money fixing it later.
I incorporated in my home state of Texas after consulting with an atty. Don't just go for the hype or advice from these boards after this state or that state: spend the money now on an attorney to set it up right so that you don't have to spend the time and money fixing it later.
if you don't intend on selling your company, selling any part of your company, or getting funding from VCs, you sould form an LLC. its the easiest to deal with and its just a liability shield that will help protect personal assets form lawsuits, basically. it can be more if you treat it as more, but if all you want is protection from lawsuits, LLC is it.
delaware is the ideal place, but if you don't live there, it'll cost you a little extra. it doesn't matter that much, it'll just be better for you if you do get sued, as delaware has the most established body of legislation on LLCs. consider a vermont LLC, also, because iirc, they are allowing purely virtual companies.
delaware is the ideal place, but if you don't live there, it'll cost you a little extra. it doesn't matter that much, it'll just be better for you if you do get sued, as delaware has the most established body of legislation on LLCs. consider a vermont LLC, also, because iirc, they are allowing purely virtual companies.