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Finding clients before forming a company

Burton

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Hey, quick question. Is it a good approach to try to close some deals with potential clients before forming a legal company or should I care about it first? I was thinking about running a simple website and then start cold emails/calls to check how it will work. Btw. service based business in social media market. Thanks in advance for commitment!
 
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Roli

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Hey, quick question. Is it a good approach to try to close some deals with potential clients before forming a legal company or should I care about it first? I was thinking about running a simple website and then start cold emails/calls to check how it will work. Btw. service based business in social media market. Thanks in advance for commitment!

It is a good idea to do that as you are testing out the market. Status-wise it means you are a freelancer, if it works out for you set up a limited company and crack on from there.
 

Andy Black

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Hey, quick question. Is it a good approach to try to close some deals with potential clients before forming a legal company or should I care about it first? I was thinking about running a simple website and then start cold emails/calls to check how it will work. Btw. service based business in social media market. Thanks in advance for commitment!
Get clients first.

Consider also starting with your own network, and without creating a website first.

My very first client was a close friend and I didn't need my own website to offer to help him.

What do you need?
 
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Sovereign

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Hey, quick question. Is it a good approach to try to close some deals with potential clients before forming a legal company or should I care about it first? I was thinking about running a simple website and then start cold emails/calls to check how it will work. Btw. service based business in social media market. Thanks in advance for commitment!

Legal entity brings expenses, so yes, start with a few successful deals first.

If you are worried about taxes, check your local laws as most countries offer you a "grace period". This is usually (AFAIK) 6-12 months in which you can work without a legal entity and when you do form it, you can assign all your profits and expenses (for that "grace period") to your company.
 

Burton

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I was thinking about the website because I'm software dev currently so it's just a couple of hours for me, anyway thanks a lot guys! Your advices are definitely enough for me, now is the time to take action. :)
 

jon.M

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Legal entity brings expenses, so yes, start with a few successful deals first.

If you are worried about taxes, check your local laws as most countries offer you a "grace period". This is usually (AFAIK) 6-12 months in which you can work without a legal entity and when you do form it, you can assign all your profits and expenses (for that "grace period") to your company.
There are also self-employment services you can use. They accept the payment, pay all the taxes and hand you the remainder as a normal salary. In case a client wants a VAT-number or something. Lets you get the ball rolling and focus on providing value instead of doing paperwork
 
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