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Ask HN: The less than legal startup, a boot-strapper's advantage

1 points by bertm ↗ HN
The thought came to be when discussing a new business model. The realization that a boot-strapper can be non-compliment with things like employment regulation, business licenses, etc, in order to demonstrate a business concept. Then fix the problems only if the business model is viable. One caveat is this will only work if one can limit personal liability.

For clarification, I am not talking about fraud or ripping people off, however the avoidance of some red tape until a model is actually proven ($$ and people). If the model fails, the business gets slapped with a few fines and fees and dies. A existing business or one with large financial investment does not have this ability, therefore it is a boot-strapper's advantage.

I would like to open a discussion on this idea.

2 comments

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bilbo0s
You're being fairly vague so let me put some hypothetical context in here.

Let's say you made a video game...

If all you are talking about is paying taxes under your own name until you find out whether or not a significant number of people are going to buy your game, fine.

Anything more than that however would be less than wise.

EDIT: Let me amend that...

I should say that I was assuming the content of the game was non controversial. If your content is controversial, ALWAYS start the LLC, it is not that hard usually.

bertm
The idea was meant to fairly generic. Your example would be closer to what I mean if your business model had some sort of regulation involved i.e. time or money you had to spend getting the greenlight from government.

An example idea was a one-click online employment agency. Employment in general is steeped with redtape.