Ask HN: Setting up company vs. Launching beta version, which should go first?

1 pointskevinlu31013y ago5 comments

We are at a position like this now, we have three co-founders, our beta version is almost ready to launch, but we haven't legally set up our company and haven't settle any related documents yet. Should we settle all legal and related issues before we officially launch our beta? Or we can just launch at first, keep improving the product iteratively, and set up company legally later at some other appropriate time? Really appreciate for any suggestions and help!

5 comments

lifeguard13y ago

A better question is how much do you have to loose if you are sued.

If you own a house or fancy car, form a LLC today. I would also sign agreements with any partners to use binding arbitration in your home state if there is a dispute. That way neither side can exploit an advantage with expensive lawyers in the event of a dispute.

If you rent an apartment and only have $18 in your checking account, it is less of a risk.

You will certainly want a company before you start having customers.

kevinlu310OP13y ago

Thanks.

slap_shot13y ago

There are technicalities you can (and will) skip on as you run your first company (pg has a good article touching on this, btw), but basic incorporation is not one of them.

Incorporating shouldn't take you more than a week and $200, and that is in parallel with everything else you have going on. Just do it and protect everyone.

There really isn't a reason that you can't do it.

kevinlu310OP13y ago

Thanks. BTW, do you know the title or the link of pg's article on this?

cyrusradfar13y ago

Just to re-iterate. It's dead simple to get boiler-plate protection.

j / k navigate · click thread line to collapse

Ask HN: Setting up company vs. Launching beta version, which should go first?

1 pointskevinlu31013y ago5 comments

5 comments

lifeguard13y ago

A better question is how much do you have to loose if you are sued.

If you rent an apartment and only have $18 in your checking account, it is less of a risk.

You will certainly want a company before you start having customers.

kevinlu310OP13y ago

Thanks.

slap_shot13y ago

There are technicalities you can (and will) skip on as you run your first company (pg has a good article touching on this, btw), but basic incorporation is not one of them.

Incorporating shouldn't take you more than a week and $200, and that is in parallel with everything else you have going on. Just do it and protect everyone.

There really isn't a reason that you can't do it.

kevinlu310OP13y ago

Thanks. BTW, do you know the title or the link of pg's article on this?

cyrusradfar13y ago

Just to re-iterate. It's dead simple to get boiler-plate protection.

j / k navigate · click thread line to collapse