This month, I’ll answer one of the questions I received via my AMA form
. This question is from Francesco
Hey Tony, I’m not sure at which point I should create a company out of my app. At the moment I have only a few users, so it doesn’t make sense for sure. However, soon I would like to start asking for money and I am not sure if I should establish a company to reduce my liability. What’s your take on this? And when did you decide to set up a legal company did you do it? Thanks!
I don’t think it’s necessary to create a company just to ask for money. The liability protection is nice but I think 99% of the time you don’t need to use it. However, if you want to cover that 1% chance, and are ready to spend the time to learn and go through complexity, you can create a company.
I created an LLC in the US using Firstbase
for both of my apps recently (at around $1K MRR or so), but mostly I do it just to learn what’s it like to run a company.
Also, depending on your country, your tax situation can be different between individual and company, so you may save some tax money there (but again, only makes sense if you are already making a lot of money 😂)