It all starts with a vision. The project, the product, the service - no one has done it before. Unbelievable, it's so painfully obvious. Can you pull it off? Maybe with your two friends. You are excited to design a logo and name. All fun and games. You design a concept and things get serious. We decide to make this a company. You need a structure, a legal structure. How much will that cost you in the US? Incorporating a company will set you back anything between $25 and a few thousand dollars. That's in part registration fees, which actually vary depending on where you are, and legal fees, which vary depending on how fancy you need your first channel disagreement to be. Your corporation turns out to be on the pricey side. Also, you need to rent a server in order to develop your product. Therefore, you decide to collect some other people's money for it. This early in your venture, who on earth would give you their money? You will get it from family friends or by crowdsourcing it. Usually, a funding corporate company issues one hundred thousand shares, which are equal pieces of ownership. You need to decide who will get how many of those. You agree on forty thousand shares, or forty percent of the company, for each founder. And twenty thousand shares, or twenty percent of the company, for a well-off family friend who buys them for fifty thousand dollars. It's called an investment, and at such an early stage in your startup, it's called a seed investment. The money he pays now belongs to the company. If the company fails in the near future, which statistically speaking is the most likely scenario, you will probably never see a dime of it again. $50,000 for...
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Video instructions and help with filling out and completing Why Form 2220 Startup
