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?
The thing I hear from most people here in the UK is 5k a month in revenue. That’s not a definitive answer because this isn’t an exact science, but basically it’s just about how tax rates fall over here.
In the past, I’ve setup registered company structures on day 1, I’ve also had companies where I worked out pretty soon it was a bad idea and closed it less than 2 months later.
I think the baseline just comes down to ‘is this real or not?’ like I think most of us have dipped our toes in with businesses that, lets be honest, weren’t real businesses. The only difference is the amount of paperwork you give yourself when you walk way from it.