Legal advice: Should you incorporate your side project into a business?

The formula:

  • If it doesn't make money, you don't have to
  • If it makes money and you want to keep it that way, you should incorporate

Reasons to incorporate:

  • protects your assets
  • allows for tax optimization
  • in most countries it is obligatory to do business activities only if incorporated

Remember that, even if you don't have to incorporate (aka if you are a US citizen), you still have to comply with business laws.

I am writing this ebook for answering all the questions https://gumroad.com/l/incorp

but I will respond to all your questions in the comments as well.

  1. 1

    Great post! I have pre-ordered your e-book. Look forward to reading.

    1. 1

      Thanks, great to hear that :)

  2. 1

    Pre-ordered! Your comments here have been good and $14 is a steal to even get a taste for the advice. Looking forward to reading.

    1. 1

      Thank you, I appreciate it :)
      Is there anything about incorporation you are particularly interested in?

      1. 2

        Same as our prior discussion here on IH, mainly around tax implications that would happen in a hypothetical exit that are influenced by the formation decision made several years prior. Personally, I've done LLCs before in my home state and am not afraid of doing formation via a service such as Stripe Atlas. So all that's left is to ensure I don't shoot myself in the foot several years down the line, should I end up with money in my pocket.

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