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!

You are approaching this bass-ackwards. Incorporation is never the goal or a milestone. It's a means to a certain end.

You should not be asking yourself, "are we big enough to incorporate?" Your question should be "What am I trying to accomplish and is incorporation going to help me get there?"

Is your goal to look cool because you have a registered company? Do you have investors knocking on your door hoping to buy shares in your business? Are you trying to shield yourself from some liability that is inherent in your product? Are you looking for a better tax structure for your business?

Until you know WHY you are even contemplating incorporation, you can't answer when is the right time to do it.

This is all very fact specific. Feel free to request a call if you want to discuss

Answered 5 years ago

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