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Ask HN: Will an “as is” software license protect me for now?

5 points by jt2190 ↗ HN
I have a software project that I'm ready to start charging some money for.<p>Some people are telling me that I need to incorporate or form an LLC before I start charging any money in order to protect myself from lawsuits. (I would incorporate in the United States.) My thinking was that I'd just license the software "as is" for now, and that would be enough protection until I actually had enough money to incorporate.<p>Who's right?

2 comments

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terravion
In business law my professor said: "If I only teach you one thing let it be this: never ever, ever, do business as an unincorporated entity!" He went on for hours to elaborate all the problems of unlimited liability and de facto partnerships--if anyone else is involved in the business you could be found to have unlimited liability for them.

Just incorporate, it costs very little, some law firms will do if for free (I think Wilmer Hale is doing this) or you can do it yourself in very little time with several on-line services like Clerky. YC even has standard documents you can copy so that you're ready if you ever decide you want to run the VC race.

logn
If you're serious about limiting liability, you also need a business bank account and to keep completely separate finances from your business. Once it can be proven in court that your company is in no way distinct from you, then you're personally liable.

I don't no the implications of selling "as is". It might vary by state.

(I'm not a lawyer, not legal advice)