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This is by far the simplest and least expensive option. This is because there is no legal difference between you and your company. So there are very few or no legal formalities. Filing taxes is also easy because all of the business income and expenses are declared on your personal tax return using Schedule C. So all of the income of the company is your income. On the other hand, all of the debts of the company are your debts. You also have no protection of your personal assets from creditors or anyone making claims against your company. Should someone sue you and win, all of your personal assets can be used to satisfy the claim. This can include your home and retirement accounts. Legally you should register a fictitious business name or DBA ( doing business as ). Usually this means running an ad in the business notices section of your newspaper s want ads. That will allow you to go to the bank and open an account under your business name. So the startup is cheap and easy. However, as your business grows, there are some drawbacks to a sole proprietorship. You can t sell shares in your company. So raising money can be difficult. It s also harder to get bank financing. And as the company gets bigger, the risks grow. It can be difficult to hire employees. And again, your personal assets are at risk for the errors or misdeeds of an employee.

My friend told me about this list; I d love to add this So Jerry and Dave did, and they kept adding categories and all of a sudden both of them went from doing their graduate work to adding websites to their list for 8 hours a day As chance would have it, their thesis advisor was on sabbatical, so there was really no one looking after them, so it all worked Had their advisor been there, it might not have happened So they did it for 8 hours a day, maybe even longer, every day for 8 months They created this huge list, at the right time, in the right place So it just started taking off It had a ton of momentum when I first started talking to them.

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The tenor of the conversation when I first got involved was, Hey, maybe next summer when you graduate, you can come and get a 9-to-5 in the Valley and moonlight with us afterward Then 3 months later, the conversation was more like, This thing is going crazy, get out here now They had no idea how much momentum they had behind them and between October 94 and January 95 I don t know the stats off the top of my head, but traffic increased 10 times in just a handful of months All of a sudden, the VC community recognized what they were doing A bunch of others everyone who was thinking about new media at the time.

Then we found one venture capital firm, Brentwood Venture Capital Jeff Brody, a VC there, saw it and he thought it was great He said, We want to invest And they were prepared to put in $45 million We were just about to sign all the paperwork It was great, since we were plumb out of money I would have lost everything: my house; I would have been deep in debt; the company would have folded; it would have been a bad scene Then we get a certified letter from Sony, and it said, After due consideration, we ve decided not to proceed with you in deploying this product Remember, they had told us they had to have a 1-year exclusive So we weren t very far along with anybody else We d begun discussions with Philips, and we told them it was a year out.

if (selectedItem >= itemList.Count) selectedItem = itemList.Count-1; if (lastKeybState.IsKeyUp(Keys.Enter) && currentKeybState.IsKeyDown(Keys.Enter)) { windowState = WindowState.Ending; return itemList[selectedItem].itemLink; } else if (lastKeybState.IsKeyDown(Keys.Escape)) return null; else return this; } And finally, here is the method where the menu gets rendered: public void Draw(SpriteBatch spriteBatch) { if (windowState == WindowState.Inactive) return; float smoothedProgress = MathHelper.SmoothStep(0,1,(float)changeProgress); int verPosition = 300; float horPosition = 300; float alphaValue; float bgLayerDepth; Color bgColor; switch (windowState) { case WindowState.Starting: horPosition -= 200 * (1.0f - (float)smoothedProgress); alphaValue = smoothedProgress; bgLayerDepth = 0.5f; bgColor = new Color(new Vector4(1, 1, 1, alphaValue)); break; case WindowState.Ending: horPosition += 200 * (float)smoothedProgress; alphaValue = 1.0f - smoothedProgress; bgLayerDepth = 1; bgColor = Color.White; break; default: alphaValue = 1; bgLayerDepth = 1; bgColor = Color.White; break; }

You have to disclose this to an investor, so we went and told Jeff Brody It was a real seminal moment for the company He could have said, OK, then, I m not going to invest if you don t have anyone to deploy your product But he said, I believe in you guys, and I think this is going to make it We ll still go forward on the same terms As soon as he moved forward, Paul Allen wanted to get in So he put in the other $45 million, and we ended up raising $9 million that round After that, everything began to change First of all, Philips came back, and they immediately said, We want to do a deal with you Because they had been sitting on the sidelines We said, We think we might be able to do a deal sooner than 1 year.

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