If you are confident that you want to carry this venture forward, it’s a good idea to incorporate as soon as you can. Incorporating separates your personal assets from your business assets, and gives you limited liability. For nonprofits, you have to incorporate (and register with the IRS) if you want to take tax-deductible donations. However, incorporation does cost money (anywhere from $200-$1200 depending on the state and type of venture you incorporate), and if you opt for a C-Corporation, you’ll have to start paying taxes (even if you are pre-revenue). You will definitely need to be incorporated before you take any external funding or enter into contracts with other businesses or individuals. When incorporating, the big decisions include: what type of entity to incorporate as, what state to incorporate in, and the details within your Operating Agreement or Bylaws.