In 2018, I registered a company.

I didn't have a fully functioning product then, but I had an idea and a vision I was working towards.

And I thought registering a company would make things official, and it's something I would've done later anyway.

I hired an agency and registered a company named Typemojo LLP.

It was a month-long and expensive affair, but having a registered company where I was the founder felt good.

But here's the thing:

I didn't need to have a company at that point.

The product I was building was months away from being ready for public, and I had better things to do than getting wrapped up in unnecessary paperwork.

Then, why register a company so soon?

I jumped the gun.

And here's why:

Ever since I started experimenting with projects over the Internet, I've always wanted to create a company someday.

There was something alluring about having a registered entity that building apps, or blogs couldn't provide.

So:

When I got close to launching an Internet business, I rushed to make it official by turning it into a registered company.

Unfortunately, it was a bad impulse decision.

While I reaped no benefits from that company, I had the following recurring obligations:

1. File a nil GST (tax) report every month
2. File compliance forms 2–3 times a year
3. Pay for virtual office space because a company needs a communication address
4. Pay monthly fees to a CA for the company filings

It was a frustrating process which pinched harder considering I didn't get any value in return.

The product wasn't out, and the company wasn't making any money.

So, any benefit in taxes or money management from operating under a company was non-existent.

After one and a half years of bearing unnecessary compliance filings and wasting around ₹85,000 (~$1,050) in total, I shut down the company and walked away with a valuable lesson:

"Don't jump the gun!"

We often rush significant decisions emotionally and without rational thinking.

Sometimes, they work out. Sometimes they don't.

But:

What if, instead of jumping in, we paused, stepped back and understood the potential paths our decision might lead to?

For example:

If I had taken some time to understand the regular paperwork and costs involved in running a registered company and weighed them against the benefits I would be getting in return, registering a company would've been a no-go at that stage of the business.

Keeping that in mind:

Whenever I need to make a significant decision now, I dial down the excitement and do due diligence on my actions.

Will I be creating unnecessary work or making life changes I'm not ready to deal with?

Like the time I got a puppy. I understood there were hard life changes involved in caring for a dog, but I was ready to adjust.

And it was one of the best decisions I made in recent years.

What about you?

How do you make complex or life-changing decisions?

Now:

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Kenneth Chabert on how Powerful First Experiences or PFEs can create a magical and deep impact on our lives.

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