What is the point of startup formalities (e.g., incorporating your company, having official job titles, etc.) before you have significant traffic?

Re:What is the point of startup formalities (e.g., incorpora... by cyu on Friday April 27, 2007 @09:36AM (#17382)

I understand the legal point, but I don't think incorporating should be a barrier to building another application. I wouldn't be afraid of pursuing different web 2.0 apps under the same company, but would definitely consider a spin off if one became successful.

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Re:What is the point of startup formalities (e.g., incorpora... by cwilbur on Friday April 27, 2007 @03:08PM (#17501)

Well, yes.

The key points are (a) when one interest starts to run in the red, you don't want it taking down your other interests; and (b) when your app takes off, you don't want to have to worry about app scaling and availability and converting from a sole proprietorship to a corporation or spinning off a company at the same time.

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