Step 2

Business Formation

Before forming a company, you HAVE to do your due diligence and learn about the different types of companies you could form. While there are a handful of different types of companies, most tech startups form either an LLC or a Delaware C-corporation.

Required reading

1. Should your startup be an LLC or corporation? Here are the pros and cons
2. Learn about forming an LLC
   1. In-depth learning: LLC University
   2. Checklist: How to form an LLC 
3. Learn about forming a corporation
   1. In-depth learning: First few chapters of Incorporating Your Business for Dummies
   2. Checklists:
      1. How to form a corporation
      2. How to form a Delaware corporation

How to setup your company

We recommend using a business lawyer to setup your company, instead of doing it yourself or using a chartered accountant, because of their experience and legal know-how for writing good LLC and corporate agreements. You can use a service like LegalZoom or find a lawyer online.

Things to do after company formation

• You should file a DBA (certificate of assumed name) with the Department of State if you have a website. The DBA will state that Company Name, LLC is doing business as companyname.com.
• Update the ownership information for all the accounts you have already created, like your domain’s registrar and hosting account, since you want them owned by the company instead of you. This creates “separation” between you and your company.
• File for trademarks and other IP protection which we will cover in the next step.

Click next when you are done…