We are building our marketplace's MVP and are wondering if we need to register the company before we launch it. Our question arises on the fact that selling through our MVP would imply the receipt of payments and the corresponding legal responsibilities with the users. It would be painful to register the company now, because its not cheap and we haven't validated our business model yet. We would be glad to hear your suggestions and make a call later on. Thanks!
MVP is a product development methodology - fail fast, fail forward and be agile to customer changes. It is not be confused with a legal entity formation.
If it is a market place, the MVP would still be able to do a transaction. Do you want to tie any liability issues coming from the transaction, or the parties involved to you ?
Company formation is so damn cheap now that you should not be even thinking twice. I would say register it.
MVP is for the product , not for business. If you want to translate the lean approach to business, it would be a lean business. Don't have a company accountant, loyar, hr person etc .. you can use on-demand services.
But you still need to have the corporate functions in a lean way. Say you get $500 in sales. It is still taxable and needs to part of someones book.
You don't have to register a company
- If there is no $ or liability involved
- If you are not raising money now
- If it is just a Proof of concept
If you are launching (even it is MVP), it is better to launch with a trim version of a company (LLC atleast). If it is a B2B market place then the parties / vendors will not work with an individual, you need a company then..
I have had situation in the past, where the company field was mandatory and I had to fake it many many times...
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