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Should Indie Software Developers Form A Company (like an LLC) to protect themselves from potential lawsuits? All of the recent news about patent trolls is making me think I should form an LLC before launching my project, but that's a lot of paperwork and also costs about $800 per year.

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migrated from programmers.stackexchange.com Aug 5 '11 at 16:17

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Only form a company if you can maintain a corporate veil. If your company doesn't act like a company, and you get sued, you run the risk of being personally liable, thus defeating the purpose of forming a corporation in the first place.

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