Incorporation

Filed in archive Entrepreneurship on May 13, 2007

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This is more of a consideration for those who practice bootstrap entrepreneurship by choice like Greg Gianforte who made enough on the sale of his first venture Brightworks Development Inc. to mcafee Associates to retire to Montana at age 33.

When Gianforte started his second venture RightNow Technologies it was in a spare bedroom cold calling companies about a service that hadn't even been created yet.

Obviously, the decision to incorporate including formation of a Limited Liability Corporation is an individual one.

Certainly, if you own an expensive home free and clear or an existing successful business that you want to insulate against possible damages you probably have both the motivation and the resources to incorporate.

But, if you're living in an apartment with $60,000 in college debts and you want to start a web design firm, you may want to wait until you have a couple of paying clients before spending money you need for rent this month on incorporating or forming an LLC.

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