Ask HN:Launch your product without being incorporated?
What are the pro's or con's of not incorporating before you launch your web/phone app to consumers?
Would you recommend against not being incorporated before launching?
Would you recommend against not being incorporated before launching?
Another one: http://news.ycombinator.com/item?id=2925222; see especially the comments by 'grellas and 'tptacek, as well as the discussion between the latter and 'idlewords.
If you are an individual, it's not that big of a deal either way. You can wait till you get traction to do it.
If you hope to raise VC money some day, I'd suggest creating a delaware corporation and not an LLC. But it isnt that big of a deal either way.
There are of course tax questions, liability concerns, etc. Talk to a professional (attorney, accountant) if you're not familiar with these.
If you have no income or don't expect to have income for a while and your liability chances are low then its worth considering not incorporating. You can always use your first bit of income to incorporate 6 months down the road.
I think people underestimate the amount of money needed to incorporate properly. Yeah, you can do it for $500, even less in some states, you just need to file a form. But what your LCC or corp agreement says actually does matter and it pays to do it right if you're going to do it at all.
It only costs ~500 to create an LLC in NYC, and it takes ~48 hours. I imagine it's less in almost every other state.