I am in the process of starting a company to produce web apps and apps for Android. I have some financial assets and a wife to support. Thus, I'm doing some research in the legal risks of going into the software business.
I've read up on sole proprietorships and single owner LLC's. From a tax stand point, they are pretty much the same, at least at the federal level. Are there any differences at the state level?
As for legal risks, has anyone heard of a software developer being sued? I'm also interested in contract work. Does this increase my legal risks?
Thanks all for any pointers...
Hi Jimen - I'm not an attorney, so my response should not be construed as legal advice. Its worth paying for an hour of an attorney's time to get advice on such matters.
The being said, here are a few tips to help you protect your personal assets:
Thank you for starting this discussion. I'm in the same boat as you(though not with phone apps). Just lastnight I attended a lecture on IP (http://www.techhui.com/events/protecting-trade-secrets-company-info...) and will be attending http://www.techhui.com/events/entrepreneurship-small-business-clinic . Both of these I found by through TechHui.
The first one is a series of lectures and has a cost. The second is free. If you would like to know the scheduled lectures for the first one let me know and I'll send them to you.
The lecture last night was very helpful(they also covered copyright).
For my project the current obstacle is finding other people to build a team. The people I'm looking for are no necessarily tech people but business people. If you(or anyone) know where I could meet people or find people who have a start up mentality could you let me know where to find them.
I hope your company is successful! Maybe we could help each other in starting our companies.
Its nice to see a familiar face. If you are interested, there are still openings for the Nov. 8 small business clinic that Steven referred to. It is a free service and a chance to get some legal questions answered. .Im at HTDC now,