Creating a personal company
I'm developing several software which will be (I hope) really useful and will find it's customers, I'm doing it all by myself. For graphical works etc. I hire freelance designers online, but programming, forms, features, engine, etc. all coded by myself.
What do you guys suggest?
Sell it to an already established company? (not preferred)
Create a company which I will be owner and only employee?
Invest money and create a corporation/company/LLC with several employees and have a physical address and office etc.
Please explain your reason, for very beginning, I don't want to hire anyone, I want to sell several copies and have my customers, then I want to establish a company, as I did everything almost by myself, even investment (if needed), I don't see specific reason for having others and paying them.
So what do you guys suggest? I heard sole proprietary companies doesn't earn more than 250k and it's better to switch to corporation or LLC etc. because of benefits. On the other hand I heard that if I create LLC company, in case of failure, they can get EVERYTHING from me, what's this all about?
I want it to be somehow my side-work, I'm already full-time employee, but as a workaholic I use my free time to create my software, it's not a jump-jump android game, I'm writing a digital security product which will have millions of lines of code in C, so please advice, I'm totally unfamiliar with everything related to taxes/companies/LLC/corporation etc.
Thanks
P.S. I'm in New York
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You're confusing so many things at once here......
First thing first: we cannot suggest you what to do business-wise since we have no idea about your business. How on Earth can anyone know if you should sell the software to someone or try to distribute to customers yourself? How would we know if you should hire employees or not?
If you say you don't need employees - why would you consider hiring them? If you say you want to sell several copies and have your own customers - why would you ask if you should sell your code to someone else? Doesn't make sense.
Now to some more specific issues:
I heard sole proprietary companies doesn't earn more than 250k and
it's better to switch to corporation or LLC etc. because of benefits.
I heard it was snowing today in Honolulu. So you heard things. It doesn't make them true, or relevant to you.
There's no earning limit above which you should incorporate. You can be sole proprietor and make millions, and you can incorporate for a K/year revenue business.
Sole proprietorship, incorporation (can be C-Corp or S-Corp), or LLC - these are four different types of legal entity to conduct business. Each has its own set of benefits and drawbacks, and you must understand which one suits you in your particular situation. For that you should talk to a lawyer who could help you understand what liability protection you might need, and to a tax adviser (EA/CPA licensed in your state) who can help you understand the tax-related costs and benefits of each choice.
On the other hand I heard that if I create LLC company, in case of
failure, they can get EVERYTHING from me, what's this all about?
No. This is not true.
Who are "they", how do you define "failure", and why would they get anything from you at all? Even without knowing all that, your understanding is wrong, because the "LL" in LLC stands for LIMITED liability. The whole point of forming LLC or Corporation is to limit your own personal liability.
But mere incorporation or forming LLC doesn't necessarily mean your liability is limited. Your State law defines what you must do for that limited liability protection, and that includes proper ways to run your business. Again - talk to your lawyer and your tax adviser about what it means to you.
I'm totally unfamiliar with everything related to
taxes/companies/LLC/corporation etc
Familiarize yourself. No-one is going to do it for you. Start reading, ask specific questions on specific issues, and get a proper legal and tax advice from licensed professionals.
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