Set up legal entity before releasing MVP?
Is it necessary to set up a corporation or LLC prior to releasing an MVP? The MVP would be a basic website with links to other company’s products (generating revenue through affiliate marketing commissions).
Not sure if that’s specific enough to gather feedback here but happy to clarify details as needed.
YOU are a legal entity. Don't let that hold you back from launching an MVP. You can set one up later. Cheers!
Fwiw, we didn't setup a legal entity until Stripe threatened to shut down our payments. We had processed about $10,000 in payments by that time. I wouldn't recommend doing it that way, but I also wouldn't recommend doing it pre-revenue.
No, it is not necessary to set up a legal entity before releasing.
The exception is if for some reason you have a large audience (thousands) who will swarm to the site and instantly use it on day 1 and you are positive of this. AND you want to set up a different entity for this product than the one you likely already have (because of that audience).
Other than that - I can't think of a good reason to take the time, money, and additional overhead to worry about it pre-launch.