this post was submitted on 28 Oct 2023
1 points (100.0% liked)
Entrepreneur
0 readers
1 users here now
Rules
- No Personal Attacks - criticism of ideas is allowed, attacking people is not.
- Self Posts Only - links can only provide supplementary material. Your post must contain enough content to have a discussion.
- No “How To Get Rich Quick” posts - This community is not about making a quick buck. Posts asking the community how to make $X, without making specific reference to a reasonable idea, are not tolerated.
- Avoid unprofessional communication - Please treat fellow entrepreneurs like respected coworkers, label conversations if NSFW and avoid deliberate provocations.
Please feel free to provide evidence-based best practices, share a micro-victory, discuss strategy and concepts with a frame work, ask for feedback, and create professional conversation. Treat every post as if you're at work and representing the best version of yourself.
founded 1 year ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
If you are starting a tech billion dollar startup, then yes you need an LLC, EIN, website, business cards, socials, business bank account, corporate lawyer, bookkeeper, financial advisor, accountant, company cars, etc.
Anything else, just worry about revenue first. Let's make sure it even is able to lift off the launch pad before you worry about those things.
I know everybody thinks it is the greatest sin in the world to intermingle business and personal transactions by using your own bank account at first. I'm here to tell you. I've started several businesses. Nobody in the IRS or anywhere else gives a crap about the initial stages of a business. I know I'm a complete stranger on the internet, so I guess take what I say with a grain of salt. But to me, you should just worry about lifting your business off the ground first before worrying about LLC and all the other fluff.
As a matter of fact, I personally know a bunch of people who spent all their initial energy on getting an LLC, EIN, webiste, business, cards, etc. and never actually launched their business. They just left those things sitting there collecting time dirt. Don't fall into this trap!
It’s not that the IRS cares, it’s that such commingling is tough to square during diligence of your first investment round. A clean sheet is better and easier for everyone.
I understand that. But making the LLC, EIN, etc. Is the easy part. I've seen too many times people focus on the easy part because it's the easy part. The hard part is launching the company off the ground.
I'm mainly in the real estate business. Most people who want to do rental real estate never get past the research part. Why? Because it's easy. You ask them why they haven't gotten their first rental yet they will tell you they are still researching. Yeah, been researching for 15 years...
The OP needs to focus more on launching the company. Registering an LLC literally takes minutes to do.