When to incoporate?
Hello hackers,
The benefit of incorporation is to get taken more seriously, and also to protect the founders from lawsuits, since the business is a separate entity. It also helps fundraising, especially foreign capital, and to hire employees/contractors.
The downsides is the greater administrative work in filing taxes and compliance.
For those who did incorporate, how much revenue did you hit before incorporating the business?
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The best time to incorporate is generally after your first 50-100 paying customers and once you see your business growing or you dive in full time. Your first 50-100 customers will validate your product/service and will create a good feedback loop for you.
Check out this super helpful article that compares sole proprietorship vs LLC vs C-Corp. You will be able to understand which entity structure you need once your business grows.
Link - https://www.doola.com/blog/sole-proprietorship-vs-llc-vs-corporation