How do we structure a company with one Founder who invented a product while others finance and run operations?

The answer is yes, but it always depends. Let me begin by saying that the more knowhow, etc. involved, the easier it is to sell something without any patent protection. Otherwise, you are trying to sell something without protection and you get no protection until the patent issues, which may take years. The acquirer may just run with it (I would) without licensing knowing there is no cost until your patent issues. Then, when you file, they will see your claims and try to modify their product around your claims. It is slightly vicious in nature. That said, I may not act much different if you file first, unless I can buy your patent or the license costs are very inexpensive. Secondly, many countries have absolute novelty and you will not be able to protect your invention there ever, even if a licensee arises and wants to enter those markets. This too, is a serious limitation for licensing. My conclusion would be that you are underfunded to address your IP and that I can get away with murder. Filing the application is your way of telling people that you are serious. That said, it is not necessary and I have a lot of clients that file later or never file.

The answer: do both. The first thing you need to know about patents is that the U.S. now has a first-inventor-to-file system after the American Invents Act (AIA) went into effect in 2013. I have to disagree with Dan above: for hardware inventions especially, a patent is an important part of the business plan. The first inventor who "races to the patent office" now is typically the winner. This means if you do not file for a patent on your invention, you can lose the rights to your invention much easier than before the AIA. The next step is to think about how a patent fits into your business plan. A patent application is but a tool in your bag when starting up. A crowdsourcing campaign on a site like Indiegogo can validate the idea. But it also puts the idea out to the public and starts the 1-year clock ticking on when you can get a patent. For hardware startups, however, if you're not thinking about a patent upfront -- you're likely leaving a massive amount of your product's value on the table.

Any suit run by a competent lawyer will ensure that the parties named in the suit include everyone who might be able to pay. So, while your LLC might own some products, it may not be the only entity sued. You might be sued, along with all kinds of other people and companies. I'm not saying there's nothing you can do, but you certainly cannot escape having to defend a suit. Anyone can sue anyone else, even if the suit will ultimately be unsuccessful. You ask how can you handle being sued without going to court? The answer is negotiate a settlement that results in the lawsuit being dropped. So, what have you got to trade? What damage could you do if they continue to sue you, and so on.

I do not believe you should incorporate your company yet as there is a chance you will scrap the idea or iterate on the assumptions after analysis. I suggest you run your initial testing on a very minimal MVP to see if there is interest. I would go further in saying that you should not even allow people to pay only have them click on the payment option because at that point you know that it would be a conversion. The ONLY thing you are proving with an MVP is validation of an idea. Only make the mousetrap front end and see if you can drive users to where you want and stop. Even if you frustrate some people, it was worth it as you now know for sure people will buy or do what it is you wanted. Schedule a call with me to find out more. God knows I have done this enough times. Good luck Josh

There's only one answer to this question and it might sound pretentious: experience. As you go along, you might find some of your experiences remind you of certain stuff other entrepreneurs have said but you will very often find yourself going your own way even if they advise against it. You may be wrong but then again, they might be wrong also. The worst thing you could do is read or listen to too much of what others have done, in their own way, and try to mimic them, believing that the same things will work for your business as well. Take the issue of time, for example. Depending on the stage of their entrepreneurial life, some will argue you should always find time for the gym and disconnect at least a day a week. Ask a 22 year old guy who's pulling in 20K/month, in his pocket, after 2 years of absolute dedication to work and he'll say disconnecting just for the sake of disconnecting is wasted time. Then again, someone who's a master of automating his business may tell you 2 hours / day will get you to the right place in no time. Another example is sales. The world changes at a very fast pace these days. Better communication tools, better CRMs, globalization - the "rules" of who to sell to, where and how to pitch, the very traits that make your product worthy or not, they're constantly evolving. Whatever worked 2 years ago might still work today, but there could be a completely different way to sell that is faster, more cost effective and more in tune to your communication style. Waste too much time being taught about sales when doing a start-up and you'll be blind to your own instincts that may very well be revolutionary :) My advise is to develop and nurture a mindset that allows you to adapt rather than imitate. Of course, if you fell what I said is dumb and would rather be taught entrepreneurship, then that's what you should do. I don't mean that in a bad way. I really think you should follow your gut on what makes a great entrepreneur. Being successful by trying to be someone you're not will be less fun :) Here's an article I wrote about a similar topic, "how startup news is killing your startup": http://thebottomofthings.com/6-reasons-startup-news-is-killing-your-startup/ Good luck!