Chapter 3. When, Where, and How Do You Formalize a Technical Business?

The intent of this chapter is to provide recommendations on how to address all the practical requirements of starting a technical business, including ones with web apps, smartphone apps, computer software products, or any high-tech hardware. These requirements include picking a location for your operation; incorporating the business, tax, and accounting considerations; and the implications of timing on the various steps involved.

In the U.S., I recommend that technical businesses be formally registered with one of the States, either as a Limited Liability Corporation (LLC), where income and losses are merged with owners' personal income tax returns but liability is kept separate, or incorporated under United States federal income tax law, and taxed separately from its owners (C-Corp). Most other countries have similar mechanisms. Tradeoffs will be discussed in this chapter.

Besides incorporating as an LLC or C-corporation...