KickstarterForum.org

[murratw]

Does anybody have any tips on creating an LLC before a launch? Is it necessary ? Can I just form it when I know the project is going to be successful? Or does the campaign and Amazon payments account need to be in the business's name?

If something happens like a lawsuit, I don't want to be held personally responsible. I also don't to form a business if if my campaign fails. Waste of time and money.

[JayRM]

I would err on the side of caution. It doesn't really cost that much anyway. If the kickstarter campaign fails, wouldn't you want to keep pushing forward with your project anyway? You want your kickstarter backers to know that you are committed. With all the legal paperwork in order, a website, and social media presence, it'll look better to potential backer.

[pnchheda]

We are planning our Narrative Film Kick Starter launch on September 15 and created and LLC. We used https://www.incorporate.com/ basic service. Costs $99. Once created, you can apply for FED ID yourself. No need to get more than basic. Biggest advantage is liabilities risk.

[murratw]

Can you do this after launch?

[JayRM]

You can do whatever you want, but please read this article first.

http://mashable.com/2014/02/17/incorporate-your-startup/

[pnchheda]

We did that prior to our lauch since we had to create bank acounts and register that info on Amazon. Kickstarter needs you to register with Amazon for transaction processing and LLC name, bank account info etc are prerequisite for launching Kick Starter Project.

[murratw]

I am already registered with Amazon payments. But as sole proprietorship. They don't require an LLC. I am wondering what the benefit is?

[pnchheda]

Sole proprietorship is fine too. The only drawback is that with LLC, you are covered in terms of liabilities. In event someone wants to sue or is unhappy with you, with proprietorship you are on the hook. With LLC, the company will be liable. Of course, in extreme cases, there is always a way to get to you but it requires considerable amount of paperwork. This is what my Attorney told me. Please do your DD. There are hardly any questions Google does not have answer to:-)

[sbriggman]

Yea, the main drawback of a sole proprietorship is that if a company or individual sues your company, your personal assets are liable. If you have an LLC, only the assets of the company would be liable. Basically someone can't take your house if they sue you under an LLC. It varies based on the state, but for my state, the paperwork was relatively easy, but it's a $500 per year fee.