Anyone who has tried to start a company in most other countries (where starting a company can take months and thousands of dollars in fees or even bribes) would never write something like this. The US is on the easy end of the spectrum, definitely.
Also, what the author seems to be suggesting is really just a "Company Corporation" or a "MyCorporation" (both large companies that do most of this work for you for not a ridiculously high fee), rather than any real change of law. I also did a google search for "incorporate", and the first few google ads were big companies that streamline the process for you.
A final small note- I would prefer that we keep a small toll charge for incorporation. It does cost the states money to process applications and keep track of filings, and it allows people to create a limited liability shield (not something I think we should be giving away for free).
This is similar to the logic that makes me think we'd be better off with a very very small "penny black" type of email tax (like 1/10th of a cent or less), just to discourage spammers.
Having just gone through the pain I would like to offer free advice (at your own risk, duh):
First, figure out among yourself few things:
How much money, IP and time do you put in?
On what conditions do you break up? Firing for cause/without cause? Is there a vesting schedule?
These questions will take quite a few long and awkward discussions but it is a lot better to have it now rather than later. Really-really. Start early.
Second, find your local startup community and ask for references for a good, inexpensive incorporation lawyer. Pick one with best references and take the outcome of previous step to him/her. Make sure to read and understand everything (especially the deadlines) before you sign anything.
Small Business Development Centers could be a source of cheap advice, cheaper than asking same questions from a lawyer.
We run our own business, and I have set up several subsidiary companies in the process. If your ownership structure is simple, it is actually pretty easy to get started. Here's what I do:
1. have your state filings done by a registration service (I have set up several LLCs through "the company corporation") and get their starter kit with books, seal, certificates, etc.
I agree, things might be better if it were simpler. But I don't like this "company.gov" idea if it gives the feds any regulatory power.
Currently, most corporate details are regulated by the states. In the article, it's mentioned that incorporation costs over $900 in cali. In NJ, it is much cheaper, and Delaware is particularly nice (YC does all it's paperwork through Delaware, no?).
If the feds get this kind of power, I'd be worried that the whole nation would look like California rather than like Delaware.
It's the same here in Finland. There are lots of different organizations, programs and places to get help(I bet goverment funded), but actually they should just make the process more simpler.
Also, what the author seems to be suggesting is really just a "Company Corporation" or a "MyCorporation" (both large companies that do most of this work for you for not a ridiculously high fee), rather than any real change of law. I also did a google search for "incorporate", and the first few google ads were big companies that streamline the process for you.
A final small note- I would prefer that we keep a small toll charge for incorporation. It does cost the states money to process applications and keep track of filings, and it allows people to create a limited liability shield (not something I think we should be giving away for free).
This is similar to the logic that makes me think we'd be better off with a very very small "penny black" type of email tax (like 1/10th of a cent or less), just to discourage spammers.