Inventing New Products/Inventions/LLC or incorporate

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Expert: Marty McCrea - 7/25/2007


Question
When trying to get your new invention up and running with your new business is it better to incorporate or start a LLC?  And if you plan on taking orders over the phone or by internet should you incorporate in other states?  
Thank you

Answer
Hi Mary;

Good questions, thanks.  Actually setting up an LLC is incorporating your business.  There are many types of incorporations that you can set up.  LLC, C-corp, S-corp, etc.  Please remember, this is only my opinion but I think that LLC's are the best way to go.  They have the best tax advantages with the best liability protection.  an LLC is like a hybrid of the rest of the models.  What I would recommend is getting in touch with SCORE and consulting with them. SCORE is a source of free and confidential small business advice for entrepreneurs.  

Their website is: http://www.score.org/


As you set up your business, you can take orders in all states.  If you have a food product idea that you are selling, you may have to register with the FDA to be able to sell your product across state lines.  If you are not selling anything food related, you are set for cross-country sales with your states incorporation.  

Hope this helps.  If you have any other questions, please ask.  Thanks Mary.

All the best,

Marty McCrea

Inventing New Products/Inventions

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Marty McCrea

Expertise

Commercialization of an idea is truly an art form and I'm really good at letting people borrow my paintbrush. Although, it's important to note that you are your own artist, I can't paint what you see in your mind, only you can do that. But I can help. I can answer questions about honing your idea and helping it to become more real in your mind, your research, and within your speaking. I can answer questions about market research, validation, and where to go to make your first contact. My expertise is in answering the large questions that you have into more manageable pieces. I can also assist you in finding the source of the data that you can use to prove and pitch your idea if that's the path that you're on.

Experience

In my opinion, the current way to invent is inherently flawed. Regular people like us normally get “eaten up” by the proverbial sharks in the water. (corporations, invention submission companies, lawyers, etc)

We can not stand for this any longer; you feel this too, yes?


Experience:

I have helped people think and re-think their ideas for years. As a byproduct of talking with hundreds of inventors, there is a new and very revolutionary way to invent that will be unveiled to the world in 2012 called Open Source Invent. Nobel Prize Winner Albert von Szent-Gyorgyi once said that "Discovery consists of seeing what everybody else has seen, and thinking what no one has thought." I agree with this truth with all of my heart. Now let's talk about your question, your passion, and how I can help your idea gain momentum if it is ready.

Education/Credentials
Bachelors of Arts in Organizational Communication from the University of Northern Iowa Masters of Science in Technology Commercialization from the McCombs School of Business at the University of Texas at Austin

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