Building a BusinessBusiness Structures

Why Founders Form an LLC

A wall between the business and your house

A customer sues your bakery for more than it owns. Whether they can reach your house depends on a piece of paperwork.

You'll find out

  • Where a lawsuit stops
  • Where the idea came from
  • When the wall cracks

Why it matters

Starting anything means risk. Knowing where that risk ends is part of how founders think.

About 3 min6 interactive slides · 5 questionsLesson 26 · Zone 3

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  2. 20StartupsNine Out of Ten Fail in Year OneUS data says about four in five new businesses survive their first year
  3. 21Unit EconomicsMargin: What You Keep From Each SalePrice minus cost, one item at a time
  4. 22Unit EconomicsThe Break-Even PointThe sale where you stop losing money
  5. 23Side HustlesYour Side-Hustle MathWhat your idea really pays per hour
  6. 24PersistenceThree Feet from GoldThe story goes that a miner quit and sold his rig, and the buyer struck the vein three feet further down
  7. 25RegretRegret Runs BackwardsIn the long run, people regret what they didn't try
  8. 27FoundersThe Ice KingA man shipped New England ice to the tropics and everyone laughed