Minimum viable legal setup for business launches without expensive lawyers.
Legal compliance frameworks for bootstrapped founders.
| Structure | Best For | Cost | Protection |
|---|---|---|---|
| Sole Prop | Testing ideas, no liability | Free-$50 | None |
| LLC | Side projects, low revenue | $50-500 | Personal assets |
| S-Corp | $40K+ profit, tax optimization | $200-800 | Personal + tax |
| C-Corp | Raising VC, issuing equity | $300-1000 | Maximum |
Default recommendation: LLC for most bootstrapped businesses.
[ ] Choose business name (check availability)
[ ] Register with state (Secretary of State)
[ ] Get EIN from IRS (free, instant online)
[ ] Open business bank account
[ ] Set up basic accounting (Wave, free)
| Requirement | When Needed | DIY Cost |
|---|---|---|
| Business license | Most cities | $50-200 |
| DBA/Trade name | If different from LLC | $25-100 |
| Sales tax permit | If selling goods | Free-$50 |
| Home occupation permit | If home-based | $0-100 |
| Source | Cost | Quality |
|---|---|---|
| LegalZoom templates | Free-$99 | Good for basics |
| Rocket Lawyer | $40/mo | Good coverage |
| Docracy | Free | Varies |
| GitHub contracts | Free | Tech-focused |
Client/Service Agreement
Terms of Service (if web-based)
Privacy Policy (required by law)
Cost-saving tip: Use templates for 80%, lawyer for 20% review.
| Type | When Needed | Cost |
|---|---|---|
| General Liability | Always | $400-800/yr |
| Professional Liability | Services/consulting | $500-1500/yr |
| Product Liability | Physical products | $500-2000/yr |
| Cyber Insurance | Digital products | $500-1000/yr |
Affordable providers: Hiscox, Next Insurance, Thimble (by-project)
For LLC:
Cheapest states: Wyoming, Delaware, Nevada (but register where you operate)