How soon before you form a legal entity?

[DamienRoche]

I'm a programmer, and just in the process of running with a few projects that may or may not make any money. I'm just wondering if others form businesses for each idea or build everything under an umbrella business? Or don't even bother to register until they start to make money? Thoughts?

I know it's a legal question and I'm not looking for legal advice, just looking for the general attitude about this.

 

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[SteveO]

That really depends on which state you are in and the business circumstances. Being a business owner with employees, I form 2 entities for each property/business. One to own the assets and one to manage the business. My accountant tells me that the second one is a waste of a business return, but I do it anyway. It is cheap and easy to put in place in Arizona but it costs me an extra $800 each for the business tax returns.

 

[jon.a]

That really depends on which state you are in and the business circumstances. Being a business owner with employees, I form 2 entities for each property/business. One to own the assets and one to manage the business. My accountant tells me that the second one is a waste of a business return, but I do it anyway. It is cheap and easy to put in place in Arizona but it costs me an extra $800 each for the business tax return.

Did your lawyer wife recommend this?