I am happy to reveal that a non-profit legal entity for Mastodon, Mastodon gGmbH, is in the process of being entered into the German company register.

For context, I have been operating as a sole proprietor so far.

It's been in the works for 8 months but I didn't want to announce anything until everything was finalized just in case it didn't work out. Yesterday, I paid in the starting capital.

It wouldn't be possible without the help and advice of @mellifluousbox. More to follow in blog form.

Why people make legal entinties for projects?

@lucas there are a couple of reasons for creating a legal entity to govern floss projects: receiving donations, paying salaries/freelancers, holding infrastructure, holding trademarks, shielding contributors from legal risks, formalizing community/contributor ownership ...

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@uniq @lucas @BollerwagenPicard most importantly: managing risk. If you do everything with your private money, you are liable with all your private money. In contrast, a (g)GmbH is liable only up to its share capital (basically the money the company "owns", the share capital of a (g)GmbH is at least 25 k€), so your personal ability to survive (, house, car, yacht) is not on the line. GmbH is basically comparable to LLC or Ltd in anglophone countries.

· · Tusky · 0 · 0 · 3
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