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Ask HN: SaaS MVP – form company before or after getting paying customers?

4 pointsby Jackypotabout 6 years ago
I&#x27;m in the UK if it makes any odds.<p>I am about to release the MVP of my first ever Saas product which (hopefully!) will have paying customers. I know I&#x27;ll need to deal with the business sides of things at some point - form a company, create a company bank account, track money in&#x2F;out for tax purposes. Should I do all of this before getting a paying customer? Or afterwards..?<p>The MVP philosophy would surely be afterwards but perhaps for legal reasons this is undesirable. What did you guys do?

3 comments

chdanielabout 6 years ago
I&#x27;m from the UK as well and it&#x27;s <i>very very relevant</i> that you&#x27;ve mentioned that.<p>UK is the perfect place for you in this situation. US people might give you advice based on their legislation so be careful who you listen to<p>1. Set up as a sole trader with the HMRC (the equivalent of IRS for US readers that are curious) 2. Declare your profits 3. You&#x27;ll pay taxes (and everything is legal as well) on the following brackets: <a href="https:&#x2F;&#x2F;www.gov.uk&#x2F;government&#x2F;publications&#x2F;income-tax-personal-allowance-and-basic-rate-limit-from-2019-to-2020&#x2F;income-tax-personal-allowance-and-basic-rate-limit-from-2019-20" rel="nofollow">https:&#x2F;&#x2F;www.gov.uk&#x2F;government&#x2F;publications&#x2F;income-tax-person...</a><p>Scroll down to the chart to see what I&#x27;m talking about but here is the highlight:<p>Any profits between £0 and £12,500 are untaxed — you have to declare them though.<p>So I&#x27;d say yes, don&#x27;t form a company yet. Godspeed
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sharemywinabout 6 years ago
How would they pay? your personal account. seems like a pain to change later.
ElBartoabout 6 years ago
I&#x27;d do it right before releasing the product if you don&#x27;t need to do it earlier.<p>You should track money in&#x2F;out now, don&#x27;t wait until the company it setup. You can claim expenses on the company even if those expenses were incurred before the company was formed.