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Legal and financial setup to build on solid ground.
Form LLC or C-Corp
LLC is the 'Flex' choice—cheaper, fewer rules, taxes pass through to you. Best for small teams and bootstrapped startups. C-Corp is the 'Scale' choice—required for VC funding and stock options. Investors only invest in Delaware C-Corps. Wyoming offers low fees and privacy if you're not raising money.
Open business bank account
Separate personal and business money or a court can 'pierce the corporate veil' and take your personal savings if sued. Traditional banks require in-person visits. Use neobanks like Mercury or Relay—they're built for startups and allow online account opening with your EIN and passport.
Set up bookkeeping
Use QuickBooks or Xero from Day 1, connected to your business bank account. Even with $0 revenue, you must file taxes annually. International LLC owners must file Form 5472—failure carries a $25,000 fine. Get an Operating Agreement, IP Assignment (vital for investors), and Terms of Service. File your BOI report within 90 days.
