Just asking what best practices typically are, because someone told me that I should try to get small but consistent income results before starting an LLC.
I guess this makes sense, since it can cost a little to start and is a lot of work. However, wouldn’t this mean my business’s initial income/expenses would be coming in/out of my personal account, rather than a business bank account?
Don’t most people advise against this?
When we first started we just did a partnership but I would always advise to go straight to incorporating. It’s cheap and significantly less personal risk. There’s really no reason not to do it.
I can’t really recall why it took so long for us to incorporate but we were just young kids so either laziness or ignorance.
That being said one advantage to not being incorporated that I didn’t realize until long after was that people were giving us credit terms easily despite being a new company with no track record since we had to personally guarantee it all haha.