Great advice. The reason I have no LLC yet is that in my country (I am not from the US) setting up a limited would require around 25.000€ upfront locked investment. Given my low MRR until now there was no need to do it by any means. Most small SaaS companies run as a sole prop for the time being. (Germany/Austria area) Coming up with the 25.000€ also seems unreasonably high and would instantly require me to do proper accounting for which I would need to hire a dedicated accountant which adds to the cost again... Hope you can see that for my 500$ MRR it's simply not economically feasible.
That being said, I am seriously thinking about setting up my company in another country with a more appealing legal entity structure. Either the US or Estonia (EU E-Residency). Appreciate your advice here as well!
That being said, I am seriously thinking about setting up my company in another country with a more appealing legal entity structure. Either the US or Estonia (EU E-Residency). Appreciate your advice here as well!