How To Start a Software Company Using FairSoftware
Once you have an idea for a product, rather than start coding, the best advice is to test the market by trying to sell the minimum viable product.
Save Cash
Build your team for free, by having everyone legally protected in case the product takes off. But you know that if the market is not there, you didn't waste any money. Typical incorporation costs are $200 online, but you will need to add $500 at least for a lawyer to draft proper vesting and stock purchase agreements for the founders. If one of the founders resides in California, expect to pay $800 of state taxes each year, even if your company never makes a dime.
Liability
If you choose to test your market without forming a company, how will you sell your product? You do not want to build a PayPal button that links to your private account with your private contact information.
By hosting your project with FairSoftware, your customers buy from a corporation (FairSoftware, Inc.). It provides a shield.
Success
Once your product takes off, convert your project into a full-fledged corporation. This is explictly allowed by the Software Bill of Rights, section 3.1.
You can then continue to grow, raise venture capital, or do whatever corporations do. Congratulations!
Join Now
To participate in the revenue sharing program, to join a project or host your own project on FairSoftware, you must become a member. Registration is free!