Should I…? – Decision
Should I incorporate before launching my SaaS?
Verified · editorial policy
Verdict
No
VerdictNo – sole proprietor or single-member LLC is fine until $10K MRR.
Decision key facts
TL;DR
- Question
- Should I incorporate before launching my SaaS?
- Verdict
- No – No – sole proprietor or single-member LLC is fine until $10K MRR.
- Category
- timing
- Last verified
- May 22, 2026
Direct answer
Direct answer
As of , the answer is: No. Sole proprietor or single-member LLC is fine for almost any indie SaaS until you cross $10,000 monthly recurring revenue or start hiring employees. Incorporating before you have a product accumulates legal fees, registered-agent costs, and tax-filing complexity against revenue that doesn't exist. The right time to incorporate is when the business has demonstrated it can sustain the overhead.
Why
- Single-member LLC in most US states: $50 to $500 setup + $0 to $800 annual fee. Reasonable. C-corp: $500 to $1,500 setup + $1K+ annual. Premature for pre-revenue.
- C-corp specifically matters for venture funding. If you are not raising VC, you almost certainly don't need C-corp structure for the first year.
- Don't take incorporation advice from incorporation services. Their incentive is to sell you the most complex structure.
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