All entrepreneurs face the question: “when should I form a company?” Transitioning from partners in an informal collaboration to co-owners of an actual business may seem like a big step, but it is a necessary one that every successful startup eventually must take. Forming a corporation or limited liability company not only protects founders by limiting personal liability for activities related to the business, it also defines the rights of founders relative to each other and to the business, which is important in case there is ever a falling-out among the founders. So the short answer is: the sooner the better; but here are five telltale signs it’s definitely time to form a company.
To read on, see our guest blog entry at Greenhorn Connect.