Visit Your URL Create the Company
Incorporate as early as possible.
1. A written official founders’ agreement helps make things clear and avoid fights between Founders.
2. Get the Value Added Tax (VAT) back from all your business expenditures on goods and services.
3. Outside investors and accelerators will require the company to be incorporated.
4. Personal liability protection : don’t contract a debt under your own name.
5. You want to hire employees and sign a contract under a company name, not your own name.
6. Keep the intellectual property safe and sound.
Incorporate as late as possible.
1. Don’t waste your time and money on paperwork and lawyers. Focus on making a product or service people want.
2. Personal liability at the very early stage is very low. Simply avoid contracting a loan!
3. Some benefits (free co-working space from your city, startup competitions) apply only for early stage startups with less than 2 years of existence.
5. Avoid wasting your time preparing and filing public company reports required in your country or state for your business to be registered, or losing your money to an accountant.
The best time to incorporate your company depends on each situation, but you now have the keys to make the right choice!
1. You can pronounce it
2. It’s (relatively) short
3. It’s straightforward
4. It’s easy to remember
Our advice at MyLeanMBA: don’t spend too much time on it as this is rarely the top priority. It is wiser to dedicate time once you have fully validated your product/market fit and you are going to enter into a growth phase.
If you DO want to design a logo yourself, you can use a graphic vector tool like Sketchapp, Autodesk Graphic, Inkscape or Adobe Illustrator. But chances are that you will need external help for that, and previously mentioned freelancer websites like fiverr, upwork, and 99designs are a great choice.
Three years after Graham Hunt, 44, started his real estate firm Valencia Property in Spain in 2000, the two-person web design team he hired to build his site split and he had to choose between them. Hunt soon discovered the partner he didn’t choose had registered himself as the owner and administrative contact for the domain name, so Hunt didn’t own his own website. It took three years and he ended up paying the disgruntled partner nearly $6,000 in sales commission fees to get back ownership of the domain, which originally cost just $15.
Ann Jordan-Mills, a writer and editor from Alberta, Canada, says:
“I work exclusively in my home, where I have a spare bedroom set up as my study. I have a stand-up, sit-down desk that sits on top of my regular desk. I also have a treadmill desk in my developed basement. My view is tall poplar trees that I watch through the seasons (no leaves yet), and my company, to date, is a couple of squirrels that romp in the trees.”
A recent study by Ravi Mehta of the University of Illinois at Urbana-Champaign found that a moderate level of noise can actually benefit people who are working on creative tasks. Home office workers can simulate this level of noise through tools like Coffitivity.com, which help you to experience a moderate amount of background noise.
legal cost when hiring the service
number_of_hours_you_would_spend * your_own_hourly_opportunity_cost * risk_factor * learning_factor
where the risk_factor>1 is a multiplying factor coming from the fact that you will probably not do the job as well as a lawyer would do it, and this implies potential risks for your business (legal issues, more time lost if you need to file the paperwork again, etc.)
The learning_factor is a multiplier between 0 and 1 and means that you are learning things when you do the work yourself and that’s important (especially when you’re the CEO) to be able to understand how your business works.
The hourly_opportunity_cost is something you should always have in mind. Preparing and filing legal paperwork is not core business and is something you could definitely outsource. If you want to do it yourself to learn, that’s totally fine, but you should know how much one hour of your time is worth: how much money would you (statistically) bring to your company if you were selling your product/service during one hour?