Granted, it does vary by state (and country I suppose, if you're not US based), but here in North Carolina the overhead of an LLC is minimal. And there is something about registering a legal entity that makes things feel more "real" somehow.
I did my own LLC papers and paid the filing fee, which was a whopping 200 dollars or so, and the annual report stuff can be done online and requires a yearly fee of around 125 dollars, IIRC. Tax paperwork is also relatively minimal during the "pre revenue" days.
So is it worth it? Hard to say, but on balance I'm happy that I did it. Even though we'll have to do some extra paperwork later to transition to a traditional corporation when the issue of taking outside funding comes up.
Comments
Granted, it does vary by state (and country I suppose, if you're not US based), but here in North Carolina the overhead of an LLC is minimal. And there is something about registering a legal entity that makes things feel more "real" somehow.
I did my own LLC papers and paid the filing fee, which was a whopping 200 dollars or so, and the annual report stuff can be done online and requires a yearly fee of around 125 dollars, IIRC. Tax paperwork is also relatively minimal during the "pre revenue" days.
So is it worth it? Hard to say, but on balance I'm happy that I did it. Even though we'll have to do some extra paperwork later to transition to a traditional corporation when the issue of taking outside funding comes up.
YMMV, of course.