Use the money to prepare yourself for a large amount of funding. One of the first things they'll tell you at YCombinator is that vc and angel investors are very particularly about a company's legal structure. pg has open sourced the docs here: http://ycombinator.com/seriesaa.html Pay whatever you need to pay in order to get that done properly.
$5,000 is a small enough amount of money that the best way to use it is to set yourself up for the next level.
That's pretty good advice, but I'd hold off on spending it on legal affairs until you really need to. $5000 gets you a long way when it is spent on hosting and bandwidth, it's a drop in the bucket when you are spending it on legal advice and incorporation fees.
Use your $5,000 to leverage it to get you another $10,000 or $20,000 in sales, then start thinking about another round and spending money on legal advice and other niceties.
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Use the money to prepare yourself for a large amount of funding. One of the first things they'll tell you at YCombinator is that vc and angel investors are very particularly about a company's legal structure. pg has open sourced the docs here: http://ycombinator.com/seriesaa.html Pay whatever you need to pay in order to get that done properly.
$5,000 is a small enough amount of money that the best way to use it is to set yourself up for the next level.
That's pretty good advice, but I'd hold off on spending it on legal affairs until you really need to. $5000 gets you a long way when it is spent on hosting and bandwidth, it's a drop in the bucket when you are spending it on legal advice and incorporation fees.
Use your $5,000 to leverage it to get you another $10,000 or $20,000 in sales, then start thinking about another round and spending money on legal advice and other niceties.