Incorporation is the legal process of forming a company as a separate legal entity. It marks the shift from informal pre-seed activity to a formal business. section 12.1.2
At seed stage, incorporation becomes necessary when a start-up has an MVP, early traction, and plans to invoice clients. Possible structures include an LLC, C-Corp, or another company form. section 12.1.2
Incorporation supports the transition from an idea to an operating company by enabling founders to:
- Invoice clients and acquire real customers. section 12.1.2
- Build operations that can scale and attract larger investors. section 12.1.2
