Structuring the Business

Don't run your SaaS as a 'Sole Proprietor' in your own name. If the company gets sued, your personal assets (house, car) are at risk. You need a Legal Shield.

1. LLC (Limited Liability Company)

Best for solo founders and bootstrapper. It's easy to set up, has low maintenance costs, and you can 'pass through' the income to your personal tax return. **Rule:** If you don't plan on taking VC money in the next 12 months, start with an LLC.

2. Delaware C-Corp

The standard for VC-backed startups. Investors only invest in Delaware C-Corps because the laws are predictable and optimized for high growth. It's more complex to manage (requires board meetings, separate tax returns) and more expensive. **Architect Tip:** Use **Stripe Atlas** or **Clerky** to incorporate in an afternoon for about $500.

4. Career Mastery

Q: "When should I flip from an LLC to a C-Corp?"

Architect Answer: "Wait until you are either **Closing a Funding Round** or you've reached **$1M+ in revenue**. Most legal tools can 'convert' your LLC to a C-Corp when the time comes. Don't waste early brainpower on complex legal structures when you should be writing code and finding users."