You’re going to Disneyland! You’re going to incorporate as a non-profit entity.
I realize that incorporating as a non-profit entity is not nearly as exciting as going to Disneyland. But if you are in this situation, incorporating as a non-profit entity may be one of the best things that you can do for your project.
Incorporating your project is a fairly substantial step, one that imposes substantial additional burdens on the developers involved. Nevertheless, most projects that get to a certain size or achieve a certain amount of distribution choose to incorporate. Why? In a word, scalability.
Imagine a new web application. It contains a stack of individual components, such as the typical LAMP (Linux/Apache/MySQL/PHP) setup, that communicate only vertically. Although Linux, Apache, and MySQL all tolerate a certain amount of concurrency, all requests ultimately trickle down to the database layer, which handles the requests coming in from the processes.
This setup works great—up to a certain point. When faced with overwhelming traffic, the database becomes a bottleneck. It can’t keep up with the flood of requests, and the web application falls over.
That is why companies handling billions of hits each day don’t have ...