My answer to How can I get seed funding for my startup before registering the company?
Answer by Raad Ahmed:
It might be difficult for you to attract an investor without incorporation. In fact, some investors won’t even consider a pitch if there is no incorporation. Here are the benefits of registering your company:
- Personal asset protection in the event of litigation
- Tax flexibility
- Tax benefits allocated to incorporation
- The appearance of more credibility and organization
- Protection of the brand
While you won’t be completely out of luck finding an investor, you may have to focus on more personal ties (close family and friends) that know you and already have an established trust and belief in the success of your business.
I would encourage you to talk to a startup attorney to learn more about the process of registering your company. You may learn that it is the best solution after all.would be happy to help. We offer 24/7 support and affordable rates. Check out our site and get in touch for a consultation.