Setup a Company?
Hi, I'm thinking about whether I should create a company around https://digester.app or if I should just run it on the side, use my personal credit card to pay for services, etc.. I understand the benefits of creating a company would primarily be safety in the sense that if something goes south / I am sued, they could only get at company resources.
Am I missing something? Does someone else have thoughts on this? At which stage did you create an "official" business?
Seconding Sean’s comment. At the end of the day it’s dependent on you and the business, whenever you want to limit your liability as well as start separating the finances.
Check out https://blook.io. They have a few packages and help take care of the bureaucracy so you can focus on your business.
The main reason for setting up an LLC is to install the legal barrier between the company liability and your personal assets. It's not too expensive, expect $250-500, depending on where you are. And given what you're doing touches on privacy and potential GDPR management, that layer of protection could be a nice barrier to have in place.
I do private consulting(growth marketing/management/tech) and had an LLC from day 1 to limit liability since I work with corporate clients.
You should check out www.lawavocado.com
Taxes yo. Plus, you can sell a business. Get that business account and biz credit card. Don't go crazy with predatory borrowing but there are many "hidden" benefits.
Just saw that you are the NL. Not sure about anything I just shared.
Is your profile pic you trying to fly or were you playing discgolf?
haha it should be some yoga thingy ;-)
OH! Great positioning there then. YOGA = Discgolf in my world
Setting up a separate business entity is the best way to protect yourself from liability. For this to work you will need to separate your personal finance from the business'. If you are serious about your business you should create a LLC or incorporate to make it "official". The other reason is for tax consideration. I am not sure where you are from. But if you are from the US, you are most likely going to report your earnings and expenses on a Sch C in your individual income tax return. If you incurred losses and you are just running this as a "hobby" your losses might get denied by the IRS. Just something to think about.