Tell me more ×
Answers OnStartups is a question and answer site for entrepreneurs looking to start or run a new business. It's 100% free, no registration required.
up vote 0 down vote favorite

I have a prototype product. I have shown it to a few people and have a couple very interested investors (friends) who want to help me launch a viable product to build a pitch deck and business plan around.

One of the two investors wants to see a contract and I want one for both of them actually.

Their investment amount isn't very much money really... a couple grand total... but my wife and I don't want to be fiscally responsible for the money if things don't pan out.

Is it worth the headache and financial burden to go ahead and form the LLC and then base the documents from there? The cost would be something like $800 in legal and filing fees... which I can spread across a couple months.

share|improve this question
3  
Why not just continue building the product/business and focus on that? – TimJ♦ Aug 21 '12 at 18:55
That's where I am. I have built my prototype and have shown the idea to be viable... I am in need of funds to produce a pilot in order to attract an angel. I just am trying to figure out what is the best route here... ~$2000 of personal risk or ~$800 of guaranteed personal financial burden – NerdyFirefighter Aug 21 '12 at 20:22

Know someone who can answer? Share a link to this question via email, Google+, Twitter, or Facebook.

Your Answer

 
discard

By posting your answer, you agree to the privacy policy and terms of service.

Browse other questions tagged or ask your own question.