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A critical decision in the early days of your startup is the equity split. You may have co-founders, or you may be on your own, but these early decisions have downstream consequences on things like hiring, taxes, and legal complexity.
Early-stage startups, usually cash-strapped and running lean, often have trouble justifying the cost of quality legal counsel. Founders sometimes have a hard time understanding the value of their lawyer’s time and are constantly pushing their attorneys to provide more services at lower prices. Sometimes startups will try to avoid the legal expenses altogether by taking on legal work themselves. This can often lead to negative consequences for the business.
Incorporation can be both expensive and confusing, which are a few reasons that many founders delay the process. So when exactly should you incorporate your startup? The short answer is: as early as possible.
Gust Launch starts with the incorporation process, a necessary first step for establishing all the other components of your new company’s operations. Many founders have been told that they should incorporate their startup initially as an LLC, but we built Gust Launch with only one option for startups’ legal entities—and it’s not an LLC.
At the end of 2016, Gust Launch evolved from a standalone company formation product to include essential and affordable legal, accounting, and financial support for emerging startups.