Sorry, should also clarify – I'm a "bad entrepreneur" in that I'm working
on a number of projects at once, all at different stages. I know, bad habit
etc etc, but while things keep making profits (even if not *massive*), why
kill them?
When my big big thing™ finally materialises and starts to form in my mind,
that might change, but at the moment I'm happy with multiple
smaller-market-but-easy-to-own diversified revenue streams under a 'group
company'.
And for the conversation earlier on another thread – I'm also a sole
non-technical-but-also-technical founder, it's a very lonely life at times
but don't discount it, if you can deliver what you want by bringing on
staff instead, do that – you just need the cash to pay them obviously...
Hope everyone has a great weekend – time for me to put down the laptop.
Hugh
On Friday, 15 May 2015 21:08:08 UTC+10, Hugh Stephens wrote:
>
> Hi Geoff and Patrick
>
> Thanks for your answers!
>
> Regarding the questions,
>
>
> 1. *Why do you have an LLC if you're not running anything through it?
> Is it a work in progress thing you have plans for in the future? Are you
> filing any returns with the IRS and Delaware for it now?*
>
> It's a work in progress thing. I have had a bad experience (read:
> nightmare of paperwork for little to no return, but that was also the
> 'fault' of market changes during the mess of it all) doing an equivalent in
> NZ, as their overseas-registered companies legislation/regulations are a
> nightmare to deal with. So I want to minimise effort points and paperwork.
>
> This *particular* startup/webapp won't last forever (as it's an interim
> solution until a giant publicly listed corporate™ releases the
> equivalent/potentially acquires us to do so is obviously the preferred
> option), so at the moment my focus is just keeping our features afloat,
> customer growth at a reasonable rate and the highest profit margins we can
> reasonably run. It runs on me ~1-2 days a week plus a 2.5 day/wk dev plus 2
> FTE customer service, so it's still running on oily rag and is entirely
> self-funding etc (no VC or angels = win sometimes – probably too high risk
> for them anyway), but is doing bloody well and turning some good numbers in
> terms of MRR/ARPU all things considered.
>
> So from the point of view of the LLC, it's something I intend to use
> 'properly' for my next big thing™ which will be planned to be around for
> the long(er) haul, which is why I haven't chased up getting bank accounts
> etc. As this is still a 'side project' (which is starting to get harder to
> maintain as one), I don't have the time (or annual leave technically) to do
> a US trip to sign forms and come back again.
>
> Not filing any IRS returns (maybe I need to, but I bloody hope not), but
> doing standard DE paperwork and returns, which seem to pretty much just be
> 'give us money when we tell you to' at this stage of risk ("low").
>
> 1. *Are you contracting with these companies as the Australian company
> or as the LLC?*
>
> Everything comes back to the AU company (terms, contracts etc) – making
> life easy for myself. Entry cost is $20/mo so it's not a big enough cost to
> have to do custom contracts for customers (in fact, I refuse to do so
> unless they opt for a higher-revenue/profit 'enterprise' solution).
>
> I might shoot David an email to ask for his advice – thanks for the hook
> up Geoff.
>
> Patrick – yes, it is starting to become an issue but I'm also reticent to
> jump through too many hoops for $20 a month, given it's only about 1-2% of
> our US customer base (probably 40-50% of total customers are US) who
> actually insist on W9s and things – mostly the government departments
> (understandably). We currently only accept credit cards and Paypal (bank
> transfer for AU customers) because of these limitations – no ACH etc that
> you'd get for a US account sadly.
>
> Clearinghouse sounds interesting – for this particular kind of startup, it
> would be something I might shell out for, but I don't think that you'd be
> able to turn a profit for the reasons Geoff mentioned, not to mention that
> I'd only funnel the annoying customers wanting the paperwork through it so
> even at 30% of transaction you'd probably only be getting a few hundred a
> month from me...
>
> Thanks again for the advice – I will report back my findings!
>
> Hugh
>
> On Friday, 15 May 2015 17:56:18 UTC+10, Geoff McQueen wrote:
>>
>> This seems to be a common problem. Would make sense for a startup
>>> idea.... to be a clearing house for SaaS shops outside the US.
>>
>>
>> A problem to be sure, but I'd hate to do this business:
>>
>> - You're dealing with money and thus potential for fraud or money
>> laundering headaches. This shit ends up being a honeypot for bad actors
>> :-(
>> - You're dealing with companies without the revenue/money to do it
>> properly, which means you either charge a lot for the service in % terms
>> (thinking Worldpay here), or you don't make much but hope to win as the
>> few
>> that succeed grow.
>> - However, when they get big enough to "pay off" they'll cancel and
>> do it themselves properly.
>>
>> ;-)
>>
>>
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