Most founders spend $2,000 on an LLC before they have a single customer. This is backwards. You don't need a legal entity to validate—you need a legal entity to protect a validated business.
The Legal Maturity Ladder
| Stage | The Action | The Cost |
|---|---|---|
| Validation | Use your own name + Stripe. | $0 |
| First $1k Rev | Register an LLC (Self-file). | $100-$300 |
| Hiring/Scaling | Move to Delaware C-Corp (if raising). | $500+ |
| Series A | Retain a specialized startup law firm. | $2k+/month |
🛑 Comparison: LLC vs. C-Corp
| Feature | LLC (Limited Liability Co) | C-Corp (Delaware) |
|---|---|---|
| Best For | Bootstrappers & Small Apps. | Startups raising venture capital. |
| Complexity | Low (Minimal paperwork). | High (Board meetings/Shares). |
| Taxes | "Pass-through" to your income. | Double taxation (Corp + Personal). |
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