Should i register a company before launch?
I have been working on my marketplace from last 5-6 months and its almost ready i am planning to make it live this month
I am bit confused should i make it register as company before launch. it ll involves multiple vendor and buyers
Or i can test this idea first for market fit and run it as sole proprietor
I read thread here people were suggesting to test product in market before registering it, if money starts coming in than make it register
I don't know if it same goes for marketplaces or not!
Need community advice on this
Thanks
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Don’t be legal until you have to be. Adding in other bs just makes it harder. I made this mistake once.
Once you have a business, make it a business.
Cheers.
How vendors aka sellers trust a platform if its not a valid identity what would i show them in their invoices at first point ?
Just bit curious
Nah bro, are you entering into a whole bunch of contracts where you anticipate getting sued? Even as a marketplace?
If not, what's the point?
I've been going on 3 years now as a 1099 filer.
I have an EIN issued by the IRS, but I run my shit as a sole proprietorship.
Don't complicate things. Focus on the product.
thanks, right it has a point!
I would advise against it in the beginning. keep it simple until you need to do it
Keep your expenses as low as possible. you don't want to spend money, you want to earn it. So I'd say test your idea first and start monetizing! Good luck
It's always a good idea to test your product in the market before registering your company. This will give you a chance to see how well your product is received by customers and whether it has a good market fit. If your product is successful and you start making money from it, then registering your company might make sense.
If you register your company before launching your product, you might be taking on unnecessary risks and costs. It can be expensive and time-consuming to register a company, and it might not be worth it if your product doesn't end up being successful in the market.
I would say test your product in the market first and seeing how it performs. If it's successful and you start making money from it, then you can consider registering your company. Good luck!
conventional wisdom is to not register until you get product market fit. For marketplace if you are in charge of facilitating payments than you might have to register to ensure that you are clear from the legal perspective. See if you can avoid doing this by enabling this feature at a later point of time when you have commitments from atleast 5 customers. Until than you become mediator and vendor/buyer could enter into agreement directly with each other. Alternatively if its a large amount than you can decide to register at the time actual agreements are getting created.
It would be bit headache to automate a another agreement kind of thing ,bcoz i am bootstrapping it by myself only and reg. Company in uk is kinda easy
Completely agree. I only start a new company when I really "Have to".
In Sweden, you can make a small yearly turnover of $5k without having to register any company at all!
But when vendors involve with buyers selling their product and services through my platform, doesn't my platform require to be an legal organisation ?
I am based in uk though
I guess it depends a little bit on where you are living but I would start my SaaS and after I had my first paying customers I would register my company. You can save yourself the effort if you don't get any customers or your idea may not go down well.
Saas we can register later until we hit particular number and valid our products and take payments as sole proprietors in most countries But dealing with marketplace where 2 parties involve in transaction through a platform need to be register in my opinion ( i am not an accountant) just a thought.
Wanted to ask other indiehackers how they did it with marketplaces