How to register a startup company comprising of two people ?
Question by M.P.Guru: How to register a startup company comprising of two people ?
I am starting a small software company with one of my friend.
How much it cost to Register the same.What is the procedure.
Also throw some light on venture capital.
I would like to register a software company in India for developing and market a website.Where to get the details regarding the government agency for regeitering the company ?We are just two people working for the company.How to maintain the accounts and file the same for Income Tax.
We will be selling the product only after an year.What are the things i should legally maintain to show our expense details while filing for tax purpose,like office rent, employee salary,phone bills. We will be able to attain the break even only after two years, How can file a loss i.e only expense in the first year for taxation.
Best answer:
Answer by batwanda
First go to your state government online. Ours is sunbiz.gov (florida). FOr us, we can register corps online. We are in a multi member llc. You must select the right entity for what you are trying to accomplish. Read some books, law self help books, how to form a corp in ….(insert your state name)….
Venture capital?
total unknown.
Give your answer to this question below!
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The best form of organization can be determined by the potential liability of the business. I don’t know enough of the scope to answer this.
Generally, there are several options:
Sole prop
LLC
Partnership
S Corporation
C Corporation
This depends on the state you are starting the business. It also depends on the type of software you are writing. My first suggestion would be reading the Service Corp of Retired Executives Website:
at – http://www.score.org/article_limited_liability.html
Next, I would define the scope of what my software does with an in depth analysis of what the software does, the algorithms you use, the objects you need to import into the software. If any of the objects are proprietary and need to be licensed, find out what that does. After you determine the liability of the software then you can choose the correct form of organization. Your attorney can also help you protect your intellectual property you are developing with the software too.
On venture capital: Not in this lifetime. After the IT bust, it’s mostly gone. Prepare for lots of personal debt or a(nother) mortgage. If the idea is really worthwhile forking out your own cash to make this work should not be a problem.
That depends…. who do you want to register with? Venture Capital is alive and well in software. Focus on a business plan before you go down that road though. You need a very solid footing that is sound in logic before any VC firm will keep you around for a 2nd interview.