ASK HN: How should I set my company up?

https://news.ycombinator.com/item?id=347768

by dawie • 18 years ago

4 4 18 years ago

news.ycombinator.com

Company, Bank Account and Set of books for each Web Application?

This is a follow on question about: http://news.ycombinator.com/item?id=347381<p>In the comments Ryan talks about the difficulties with handing over his merchant account etc to the company that acquired him. I want to know how this can be made easier.

qhoxie2• 18 years ago

To my knowledge, there is no perfect way of transferring a merchant account. Your best bet is the advice Ryan offered: choose the biggest, most prevalent merchant account provider you can

Also, this is not particular to tech or startups, but keeping solid documents will make any sale much smoother. Use something like gnucash, mint/wesabe, quickbooks, etc.

If by company you mean incorporation, I believe that Delaware LLCs are generally considered the best option.

mccon104• 18 years ago

i think for incorporating, if you plan on raising funding from VC's or angels you will want a C-Corp.

As for where, many companies incorporate in Delaware... but IANYL

dawie• 18 years ago

But if you have a company called ABC limited and it owns the merchant account,the bank account, financial statements,legal and all the assets. It should be trivial to sell ABC Limited while not having to worry about transferring domains, bank accounts or merchant accounts.

qhoxie2• 18 years ago

If that is how the sale is arranged, then yes, but trivial is subjective.

ASK HN: How should I set my company up?

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