Starting a Company

[alienSkull]

Background:

I want to start a company. The purpose of this company is for tax/banking purposes and to give a formal appearance for my PC repair work and my website design work.

Eventually I would like to work on a software project called Unreal Immersion. It is a project of my creation but I want this project to be run by my company. For this project I would need to hire additional people.

Question:

I have googled for countless hours all of the aspects of creating a company, and talked with my father who started his own corperation but he is in a totally different field (Water/Wastewater Treatment).

I was wondering if anyone had any experience in starting a company in the IT field and if they would mind sharing their experiences.

Right now I'm looking at a sole proprietorship but I'm not sure if that is the best move for my software project.

[Thorn]

Background:

I want to start a company. The purpose of this company is for tax/banking purposes and to give a formal appearance for my PC repair work and my website design work.

Eventually I would like to work on a software project called Unreal Immersion. It is a project of my creation but I want this project to be run by my company. For this project I would need to hire additional people.

Question:

I have googled for countless hours all of the aspects of creating a company, and talked with my father who started his own corperation but he is in a totally different field (Water/Wastewater Treatment).

I was wondering if anyone had any experience in starting a company in the IT field and if they would mind sharing their experiences.

Right now I'm looking at a sole proprietorship but I'm not sure if that is the best move for my software project.

I've done it, and my answer is "It depends on a lot of different factors."

First get a book(s) on writing a business plan. Read it. Write the initial plan. Then talk to an accountant and an attorney. Both should have "small business" matters as a part of their practices and should know state business laws. Discuss the rough draft with them, and then revise the plan based on what they've told you.

This may take several cycles before you get it right.

The business plan, along with personal financial and tax situation, your investor[s] (if any), your real assets, etc., etc., etc., all will determine what type of business entity you ultimately decide to form. There are a lot of different types:. Sole proprietorship, partnership, standard corporation, "Type-S" corporation, LLC, and LLP, are some of the more common ones.

[converge]

It is also common for you local government to have an enitity that encourages/fosters small business development.. some areas even have non-profit groups of retired executives that help new small businesses in their early stages. Very good resources.

[bascule]

It's hard. I tried! It didn't work out very well. Now I'm working for a startup, and there are people who know what they are doing handling the business side of things. I have a lot of freedom on the technical side, and that's all I was ever really looking for in my own business.

So, unless you've taken some business/accounting classes or are planning to hire an accountant, and unless you have the balls to solicit angel investors and venture capitalists on your own, and deal with all the political red tape, and even with management experience you've surely never taken on such a monumental task as being the organizational hub of everything, your best bet is to find someone who knows the ins and outs of the corporate jungle willing to put everything together and handle the business end of things. If what you're really looking for is the freedom, a startup is probably a better place to look. You just have to bust ass and help to get it off the ground, because if you get in on the ground floor and make things happen, you're money... just look at Tom of MySpace fame:



Ick, that doesn't show up that well with this gothed out vB theme... I suggest viewing it on a white background

[alienSkull]

Thanks everyone.

So, unless you've taken some business/accounting classes or are planning to hire an accountant, and unless you have the balls to solicit angel investors and venture capitalists on your own, and deal with all the political red tape, and even with management experience you've surely never taken on such a monumental task as being the organizational hub of everything...

Well my mom is an accountant.... anyone ever hire their parents??


Thanks for the information <---- most valuable stuff going these days...

And please, if you know something about this stuff that equates to being slapped across the face by a wet fish, and you guys don't give me the heads up, I am gonna be angry...

[Import]

I wouldn't recommend going into business with family or friends. While It may seem liek a great idea at first, the lines between business and non-business can quickly become blurred.

[alienSkull]

I wouldn't recommend going into business with family or friends. While It may seem like a great idea at first, the lines between business and non-business can quickly become blurred.

Yes, I noticed this problem, because I had helped my dad out starting up his business, and to make deals/negotiations becomes difficult.

I would not recommend working for relatives to ANYONE. Not that it was a particularly bad experience, but things are slightly more difficult.