News for hackers. Stuff that matters.

A comment on Running a Software Business on 5 Hours A Week.

Re:Running a Software Business on 5 Hours A Week by tptacek on Saturday March 20, 2010 @04:26PM (#1206938)
(Aside: I know many Americans consider the last option shockingly irresponsible. My ability to prevail over my employer — a major multinational — in a lawsuit is effectively nil. A contract is just a formalization of a promise. In Japan, the ongoing relationship with my bosses is the part of the agreement that provides security, not the piece of paper.)

This is one of the more important bits of advice I've seen Patrick give, and I think it applies to those of us full-timing with our companies even more. Your lawyers are going to tell you that contracts matter a whole lot, too. And just like Patrick with the company in Nagoya, your ability to prevail in a dispute, contract or not, is usually going to be nil.

This is something I think a lot of us learn the first time they get into a dispute (for instance, when we are first aggrieved by a giant business partner who breaches our carefully-considered contracts.)

[ Parent | on HN ]
Re:Running a Software Business on 5 Hours A Week by sachinag on Saturday March 20, 2010 @07:33PM (#1207219)
This is a large part of why I advocate waiting to incorporate until you can do it right. The instacorp LLC won't really protect you when you need it most.
[ Parent | on HN ]
Re:Running a Software Business on 5 Hours A Week by tptacek on Saturday March 20, 2010 @07:53PM (#1207246)
I think that's pretty misleading. What protects you when you've incorporated is that your contracts are between your company and your customers, vendors, or partners. It's not the nature of the contracts themselves. Consolidated Gypsum can put your company out of business by dragging you through a lawsuit until you BK. It can't take your house.

The reason contracts don't protect businesses is that they cost too much to enforce. When you're not in the same league as your adversary, they will simply outlast you. The same dynamics do not apply to an attempt by Consolidated Gypsum to make themselves whole on a debt by trying to take your house.

Incorporate early. There's no good reason not to.

[ Parent | on HN ]
Re:Running a Software Business on 5 Hours A Week by theBobMcCormick on Saturday March 20, 2010 @10:26PM (#1207418)
Good advice. Also, in most states setting up an LLC is cheap and easy. Here in Colorado, it's only $50 and a fairly thin form that only ask for the obvious stuff like; what's the company name, what's your name(s), etc.
[ Parent | on HN ]