My answer to If you’re just starting a social network website, should you incorporate?
Answer by Raad Ahmed:
Hey – I’ll do my best to briefly answer your questions!
- You should incorporate if any of the following are true: 1) you have employees; 2) customers; or 3) making sales.
- In terms of LLC vs Inc. – it depends how big you want to build your company. If you’re anticipating big sales and a possible venture capital round at some point then incorporate. An LLC doesn’t easily facilitate funding.
- Don’t use a DIY site like LZ. Yes it is cheap, but you get what you pay for: the forms you need to file. You won’t have the ability to speak with an attorney to go over your options and to guide you through the maze of post-incorporation formalities.
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