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Ask HN: When to Incorporate for a SaSs Business?

7 pointsby blader_johnyover 5 years ago
I have set up Stripe to collect payments for my web app using my personal account. Taxes aside, when should I go set up my company and a corporate bank account?

2 comments

salukiover 5 years ago
You should probably setup a business checking account to deposit your stripe payments in and pay expenses out of.<p>If you are in the US running your SaaS as a sole proprietorship (get an EIN number from IRS) is ok till your idea is proven and you have a consistent MRR showing continued growth.<p>Then it&#x27;s probably time for an LLC consult with an accountant and attorney though before setting anything up.<p>I wouldn&#x27;t waste time&#x2F;effort and expense by setting anything up too early.
blahneverdiesover 5 years ago
I&#x27;m always curious about this, too. For anyone who&#x27;s gone this route (as described in saluki&#x27;s response), how long have you been able to put off business formation?<p>The concern I&#x27;ve always had is, what happens if you get some corporate customers, and they ask &quot;Who is Johnny Blades, and why is he billing us $99 a month?&quot;<p>For those who&#x27;ve encountered this situation (and aren&#x27;t just speculating), were there any problems?
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