Ask HN: Can you offer a subscription service as an individual?
I am working on a simple SAAS product as side project, hence the Q. Also, if the answer yes what payment solution are you using ?
For SaaS . . . use Stripe.com for payments.
When you start out I wouldn't form a company until you have revenue . . . once you grow your SaaS to a few hundred dollars of recurring revenue it's time to form an LLC. <$500 in most states.
You could form one right away if you feel your SaaS is at risk for a lawsuit or you have a large amount of assets . . . but typically waiting till you have signups and regular revenue is recommended.
Listen to: http://StartupsForTheRestOfUs.com
read/listen to everything by patio11
Good luck in 2015.
I would recommend automating signup so that is seamless . . . but you could have your backend email you for cancelations, etc and do those manually through paypal.
In the beginning keep things simple and be willing to do things manually behind the scenes to keep time/costs low till you have signups and users getting value out of your app that will be subscribers long term.
Payflow Pro by PayPal ($30/mo) is ridiculously complex and it's better to buy an additional 3rd-party service built on top to make it easier (you'd end up paying $100+/month plus 2.9%).
If you are a lone young man/woman with no kids, no house, and few assets, I wouldn't worry about it right now. If you have $10k+ net worth, it really wouldn't hurt to set up a company. It costs a few hundred bucks and takes a weekend of reading or a short consultation with a lawyer and an accountant.
Also note that it will cost more to incorporate later once your business already has traction.