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7 Comments

When should you officially form a company?

I haven't really gotten off the ground yet, just $15 in MRR. But I'd like to get started with some Google ads and business partnerships. I'm wondering if I should officially form a company with something like Stripe Atlas right now, or if I should wait to see if I get more traction first and hold off on paying the ~$500.

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    I'd advise you to focus on validating your Product Market Fit, then going to legal things. Your time is limited while legal stuff might take a looooot of time

    1. 1

      That makes sense. But with Stripe Atlas, it seems like it could actually be pretty quick. And so the bigger downside would be the money.

    2. 1

      Yes, wait till you make some significant recurring revenue. Several £100s / month. Think of it like this. You don't need to register your bicycle to a friend for £100. Similarly, if 10 people give you £10 but never come back again, then you don't yet have a sustainable business. Once you really have a business then you can register quite quickly.

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    How do you manage to get money from customers without a company ? I have not created one myself as I did not reach that point yet but I though it was required to receive payments.

    Stripe or Paypal requires a company number no ?

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      I'm set up with Stripe but didn't need a company number, I don't think. I used my normal checking account.

  3. 1

    Wait so long, as you can handle it legally without a company.

    Things to consider

    • Risk factor of business - having company covers you.
    • Other activities - maybe creating a mother company and using it for various products may be good practice.
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      That's a good point about the company protecting your personal assets. I'm building poker software and charge $5/month, and I don't see any risks of my personal assets.

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