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I am unsure if I should do this. I am going to start a business account this weekend but, I was thinking if I should file an LLC?
That's a complex question that highly depends on what you want to do.
As a rule of thumb, it's probably more important to actually start validating your business rather than dealing with bureaucracy. If you can avoid creating an LLC until you absolutely know you need it, that's not a bad place to be in.
Thank you everyone! I'll hold off until it's more solid!
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If you are going to be offering your service to third parties to use, having an LLC or other limited liability entity can protect you from getting sued personally. That's a huge advantage.
The quick answer is no.
Since it's a SaaS,
you would need to consider incorporating for the following common cases -
•B2B : Your customers would expect your startup to be incorporated/registered in order to maker their lives easier with invoices, taxes, legal agreements etc.
•B2C: If your service requires high trust factor from the customers, they may expect your company to be incorporated/registered e.g. Services requiring their personal/financial details, services dealing with children etc. But, in general B2C SaaS startup can go a long way before needing to be incorporated.
• Certain payment gateways require your company to be incorporated to provide service.
• Apps: If you are planning to publish apps with your brand name (which I assume isn't your personal name), then you would need to incorporate that brand as your company. Even if you publish apps with your own personal name, you might your company's address for In App Purchases (IAP) which is publicly displayed(Although you can provide PO number if your customer wouldn't mind that).
For everything else, make money, validate business model and then go for incorporation.
I have written with more detail about this here - https://hitstartup.com/when-to-register-our-startup/.
No! just deploy it and test it out
Like others suggested. Need to figure out if you can afford it in case it takes a long time before you start getting serious money into the company. Until then you will have to pour in your own money to cover the costs for example.
Why do you think you need LLC? Are you going to issues invoices?
Short answer, I would say No.
I would release the MVP, validate your idea, keep refining your offering until you get first customers and then at least you know you have solved a real problem.
If you haven't spoken with any customers in order to validate your idea... or if you have not got commitment from people already to purchase and use your SaaS then I would do all of this before filing an LLC. Just my 2 cents.
That depends on lot of things. For starters, are you doing this part-time or full time? How likely would someone sue you? If you are doing a game or a microservice most likely you wouldn't have any problems but otherwise, I'd start a business. This is what we used for our company: https://stripe.com/atlas P.S. This is not legal advice.