

Ask HN: The less than legal startup, a boot-strapper's advantage - bertm

The thought came to be when discussing a new business model. The realization that a boot-strapper can be non-compliment with things like employment regulation, business licenses, etc, in order to demonstrate a business concept. Then fix the problems only if the business model is viable. One caveat is this will only work if one can limit  personal liability.<p>For clarification, I am not talking about fraud or ripping people off, however the avoidance of some red tape until a model is actually proven ($$ and people). If the model fails, the business gets slapped with a few fines and fees and dies. A existing business or one with large financial investment does not have this ability, therefore it is a boot-strapper's advantage.<p>I would like to open a discussion on this idea.
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bilbo0s
You're being fairly vague so let me put some hypothetical context in here.

Let's say you made a video game...

If all you are talking about is paying taxes under your own name until you
find out whether or not a significant number of people are going to buy your
game, fine.

Anything more than that however would be less than wise.

EDIT: Let me amend that...

I should say that I was assuming the content of the game was non
controversial. If your content is controversial, ALWAYS start the LLC, it is
not that hard usually.

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bertm
The idea was meant to fairly generic. Your example would be closer to what I
mean if your business model had some sort of regulation involved i.e. time or
money you had to spend getting the greenlight from government.

An example idea was a one-click online employment agency. Employment in
general is steeped with redtape.

