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Ask HN: What should I watch out for in starting a business
1 point by JoeCortopassi on Oct 10, 2010 | hide | past | favorite | 2 comments
So I have an idea that I'm fleshing out right now into a business model, and starting to test it out with users in the hopes of opening to the public soon. I live in Southern California, with a baby on the way, so applying for YCombinator is out. There aren't any real needs for employees/resources right now, so funding probably isn't necessary.

I'm just wondering what some common things I should be watching out for might be.

Should I get incorporated as soon as possible, should I wait. Do I need to copyright/trademark stuff soon, does it not really matter. The articles I've been reading are very helpful, but it would be cool to get some perspective from people who have done it.




I think it depends on the nature of your business. If you're licensing something, or another type of venture that requires contracts, you'll need to be incorporated and have a lawyer look over your contracts early on. If you're just providing a consulting service, it probably isn't as necessary.

A generic business tip that I think is worth knowing and very tough for newbies to accept: be wary of any deal that isn't cash based. If someone wants you to do them a favor and they do one in return, watch your back. If it's truly a valuable arrangement, cash should underlay the terms.


I live in Los Angeles and when I started my business I formed a CA LLC right away. I don't have any employees in the US, just remote workers in the Philippines. I don't plan on taking any investment, so an LLC is fine. In CA there is a minimum $800 annual tax, so take that into consideration. Forming an LLC made sense for me because it protects my personal assets in the case my company is sued.

I'd suggest talking to a lawyer to get some advice...




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