When to set up the LLC?


I am setting up a web site similar to this one. At what point should I set up the LLC for it? Right before i publish it?


asked Feb 7 '10 at 04:45
16 points
Get up to $750K in working capital to finance your business: Clarify Capital Business Loans
  • What reason are you setting up an LLC for it? Are you planning on monetizing it in some way...? – Eric Amzalag 14 years ago
  • yes we definitely are planning on monetizing the site at some point. At first however we are just going to try and attract users. Should we set up the LLC for the attracting traffic phase or should we wait until we start generating revenue? I'm remembering that Dharmesh said that ones chances of being sucessful in starting a business go way up once they actually go out and form the business. – Nick 14 years ago

1 Answer


I'm not sure you need to establish a corporation until you start earning some real $$. You can have a sole prop or general partnership in the meantime. Remember there are fees and responsibilities associated with becoming a corporation.

There are tax advantages associated with an LLC such as pass through income, etc. But they don't really come into play until you are making some money. Other factors I would consider -- do you have partners? Will they be active in the running of the company?

I would get advice from a good accountant on the pros and cons of forming an LLC now or later.

Good luck!

answered Feb 10 '10 at 10:32
B Shaw At Web P Rpro
76 points
  • For the first 3 years, you can claim expenses and show a loss, meaning I would set one up right away, as you can expense travel, etc as long as it's business related. I say 3 years, simply because the government feels you should make at least some kind of profit once every 3 years or so, else why are you in business? – Madd Hacker 12 years ago

Your Answer

  • Bold
  • Italic
  • • Bullets
  • 1. Numbers
  • Quote
Not the answer you're looking for? Ask your own question or browse other questions in these topics: