starting a business
 

I think I need to officially start a business. I found out of a need for some software, its something I've been meaning to write anyway, and I've got the code mostly done for it - its at "change structure to make it consistient and then make it pretty" stage. Mostly I think I'd be licensing/selling it to educational institutions for the most part, so I need to be able to do the tax stuff, etc. properly.

I don't mind paying my taxes, but I'm wondering what the best way to do this would be to minimize double taxation. LLC? S-Corp? I've really not done research, but I figure the brain trust would get me going in the right direction. I live in Florida, if that matters, and I do plan on seeing a lawyer. No dedicated office at home, product would be software and support for said software. Not in city limits, and I don't think there are any zoning issues.

Input please!

Spend some money for a consultation with a CPA.

id10t,
You are several weeks ahead of me. I recently purchased "Copyright Your Software" (2001) which I found to be extremely helpful. It looks as if this has been replaced with the more recent (2007), "Legal Guide to Web & Software Development" - both of these are published by Nolo. I have not ventured into the realm of actually starting the business because I have yet to do the beta testing (this will start at the end of February).

The information contained in the two abovementioned books answered many of my questions and educated me on some of the finer points in regards to questions that I should be asking the intellectual property lawyers and CPA's. I applied for the copyright at the beginning of this year. The book shown below, "LLC or Corporation", (Nov 2008), specifically addresses your question. This would, in my opinion, allow you to understand the process as well as the advantages and disadvantages prior to talking to the experts. Additionally, with your new knowledge gained, you would be asking the right questions. If interested, these are easily sourced on Half.com (in fact, I just purchased a new one one moment ago for $10).

http://www.nolo.com/product.cfm/ObjectID/47715F77-6A7A-4499-BDD17170C80AA328/111/182/

I very well may be soliciting advice from you in the very near future.

NOLO is a really excellent resource for this kind of info... I cannot recommend them enough.

Thanks y'all - gonna hit the library up and see whats on the shelves.

fireant911 - do you have to apply for copyright or just file it? I've written and distributed code before but it was either modification of something GPL or I wrote it from scratch and released under the GPL.

Steve,
Well... 'kinda' both. You have to apply and the registar will review your application. Assuming that it meets the criterion, you will receive the copyright.

Although filing with the eCO form both less expensive and quicker, you will probably have to use the CO form (as you have to send in the first 50 pages on your code and instructions - the copyright will cover both your user's manual and the program). The forms can be somewhat confusing and the registers are looking for certain 'key words'. The Nolo book(s) will greatly assist in navigating you through this process and actually make the process quite easy. If your library does not have the Stephen Fishman book(s) (either of the first two I mentioned in my original reply), by a copy off of Half.com - it is a very good investment and HUGE timesaver plus it will clearly address any questions that are bound to arise.

You are right about 'licensing' rather than 'selling'; however, it does not sound as if this is your first rodeo.

http://www.copyright.gov/forms/
http://www.copyright.gov/circs/circ61.pdf

id10t,
I received my recently purchased LLC or Corporation? text yesterday. If you are still debating your next course of action, I would highly recommend that you obtain this book. Although I have just started reading this, I have already learned many great things concerning the decisions regarding choosing the right business structure.

Can you post the ISBN?

id10t,
ISBN-13: 978-1-4133-0905-8
ISBN-10: 1-4133-0905-4

I purchased the 3rd edition which is 'hot off the presses' (November 08). I just looked on Half.com and the cheapest new version currently available is priced at $15.01. Amazon.com has them for $16.49... mine was a mere $10 when I ordered it on 18 January. The more items I read from Nolo, the more impressed I become.