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The "minimum" is that you have a (i) name, (ii) dba filing in that name, and (iii) a bank account in that name.

If you are a sole proprietor you can write off business expenses, so that is not a reason to form a corporation.

Software liability is a funny thing and if deliberate wrongdoing or negligence can be proven and they know your address the corporate veil won't stop them from making your life hell.

You probably will need some corporate structure once you get around the size where you are hiring managers.

There is no substitute to talking to a lawyer about this, because it is a broad topic with a lot of details. You don't need to incorporate in Colorado, however, "jurisdictions of convenience" in places like Delaware and Nevada are more expensive.

As for S vs C that is a matter how you file your taxes, not how you register your company (Delaware doesn't know if you are an S or C and doesn't care.)




Just a reminder that as a sole proprietor, there is no corporate veil. Your are 100% personally liable for anything you do in business. This is one of the real reasons that businesses incorporate, and possibly the most important one. Incorporation will otherwise provide more headaches, not less.

FWIW I did business as a sole proprietor for years. That said, it was always just me, and I was pretty careful. My line for incorporation would probably be when I needed to start hiring.




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