[oortlieb]

I couldn't agree more with this post. Don't pay the money just to stroke your ego.

The cofounders at my current project were antsy about having the credibility that comes with becoming "official", so we incorporated very early. Currently, we're working R&D and looking for money -- not a single investor has asked if we're incorporated or been impressed by our business cards. They do, however, want to learn about the progress we've made with our product and the projected size of our market. Use the money for marketing and product development.

Another thing to keep in mind: we went the LLC route, and its likely that if/when investment comes, we'll have to amend the hell out of our Operating Agreement.