1) As early as possible. If your company is a success, the earlier you start it the better(because when you first start and issue shares/units to yourself and your partner, the company is worth very little. Later on, if you raise money, the company will be worth more and if you wait until then to issue shares to yourself you'll have to pay taxes on that). However, doing all this stuff is a pain in the butt and it costs hundreds to many thousands. An LLC usually is the cheapest way to go.
2) VC's can only invest in C corps. S corp is only good if you have profits.
3) Get a good lawyer. Talk to friends who have done startups and get a referral.
4) If you do a Corp as opposed to an LLC, it will most likely be in DE. You have to register as a foreign entity in the states you do business in(another $500 or so).
5) I recommend getting shared space. If that's not an option, get a P.O. Box. Depending on what your company does, using a personal address might be fine.
6) Get a good lawyer and a good accountant. The less time you spend on this stuff(I'm assuming your strengths are in building the product or sales and not paperwork) the better.
7) Have a partnership agreement. If you Incorporate, the lawyers will work this out. But at the very least, make sure you have a written, signed partnership agreement detailing everyone's responsibilities. Even if its your brother, just do it.
8) Get a checking account. Stay away from credit cards.
If you are an internet startup and will be raising capital, traction/the product is important and revenue less so.
Anything else, focus on getting customers.
Comments
1) As early as possible. If your company is a success, the earlier you start it the better(because when you first start and issue shares/units to yourself and your partner, the company is worth very little. Later on, if you raise money, the company will be worth more and if you wait until then to issue shares to yourself you'll have to pay taxes on that). However, doing all this stuff is a pain in the butt and it costs hundreds to many thousands. An LLC usually is the cheapest way to go.
2) VC's can only invest in C corps. S corp is only good if you have profits.
3) Get a good lawyer. Talk to friends who have done startups and get a referral.
4) If you do a Corp as opposed to an LLC, it will most likely be in DE. You have to register as a foreign entity in the states you do business in(another $500 or so).
5) I recommend getting shared space. If that's not an option, get a P.O. Box. Depending on what your company does, using a personal address might be fine.
6) Get a good lawyer and a good accountant. The less time you spend on this stuff(I'm assuming your strengths are in building the product or sales and not paperwork) the better. 7) Have a partnership agreement. If you Incorporate, the lawyers will work this out. But at the very least, make sure you have a written, signed partnership agreement detailing everyone's responsibilities. Even if its your brother, just do it.
8) Get a checking account. Stay away from credit cards.
If you are an internet startup and will be raising capital, traction/the product is important and revenue less so. Anything else, focus on getting customers.