Money September 30, 2020

An Easy Way to Protect Your Wealth as an Indie Hacker🛡

Nick Fogle @nickfogle
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    I talked to an Indie Hacker recently who didn't have any form of liability protection, so I wanted to share a quick guide with the community.

    If you're a builder, content creator, or indie hacker operating under your own name rather than a business, you're risking financial ruin.

    There are some easy and inexpensive steps you can take to mitigate this risk.

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      Thanks, it was also helpful to me. I don't own an LLC too, I don't know the differences being a sole proprietor or owning some kind of business. I don't get the taxation stuff either. I have too much to learn on business administration side and it's oddly doesn't click. Anyways I'm trying to save some to form an LLC in EU or USA, so far I have two options, E-Residency from Estonia(seems cheaper) or Stripe Atlas. Do you have any knowledge on these or any related suggestions for people outside of EU/USA.

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        It really depends on which country you're talking about. Establishing a limited liability company in Estonia and the United States is exceptionally fast and straight-forward. Other countries require more time and paperwork.

        If anyone is interested in starting and registering a company in Germany- here is some info to help you on your journey. https://allaboutberlin.com/guides/categories/living-in-berlin/working/starting-a-business-in-berlin

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          Thanks Porsh, these are some useful articles, I'm gonna read'em all.

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        E-residency in Estonia isn’t (by itself) a method to create a company. It does make it easier to start one yourself, but you can also consider just paying some company in Estonia to create a company for you. There are hundreds of them. I would caution you though that Estonia makes it really easy to create a company but a pain in the a$$ to shut one down. All-in-all, creating one in the UK is probably the most efficient.

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          Thanks for the heads up Raymond, these two are the popular options around here. This is why I only knew about these. I gotta make a deeper research then.

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    Stripe atlas seems like a great deal. https://stripe.com/atlas

    What's your take on it Nick?

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    Are you familiar with series LLCs for deleware? Do you know if they hold up in court?

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      Not sure about your specific situation, but it's generally a good idea to form an LLC wherever you're domiciled.

      If you're forming a C Corp, Delaware tends to be a popular choice but I'm less sure about its reputation for LLC formation.

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    I agree in general, but you are also creating liability by creating a company. Creating a company comes with all kinds of tax and reporting obligations. I think the key is to have good judgement when your idea needs a company and when it doesn’t.

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      Good points, but in my experience entrepreneurs tend to be an optimistic bunch who are under-protected from a liability point of view. I've met far too many over the years still operating as sole proprietors with absolute exposure to their family's wealth and assets.

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