hello I am looking to start a website, but worry about being sued. Not that I am doing anything wrong, but is an LLC listing a better way to keep personal from business seperate?
Short answer is yes. An LLC (Limited Liability Company) or Corporation is a separate legal 'person' in the eyes of the law. It pays taxes, it can sue and be sued. So, if an LLC owns a website, then it should be the entity/person legally responsible. To keep the notion that you and the LLC are separate you must treat it that way. You need to keep separate bank accounts and not commingle your money and the LLC's. The rules for LLCs are different for each state. California, for example, has an $800 minimum yearly tax even if you make no money. You can do a google search for: YOUR STATE and SOS (or you can write out secretary of state) ex: IOWA SOS That should take you to your state's government website which should have more detailed information about LLC's.
Wow that is a lot of money if you make nothing. hmm I need to figure the cost and worth of it all I guess
California is expensive. A Texas LLC pays a 4.5% franchise tax on income over $150,000. Under $150,000 there is not tax.
look at legalzoom.com it has pretty decent fees and speed registartion is available as well, good luck
Say I have a main company under an llc, is a domain considered a business so if I owned 5 domains with websites, would each one count as a business or if I label them as being owned by the main company which has the llc, I am covered?
well does a domain count as a company? Or can you state that abc.com 123.com example.com are all owned and operated by main company LLC?
Well, I am creating a llc as I own a few sites, and I am probobly geoing to be buying 10+ webmaster related sites, so I can creat a rollup site netork. If you own a few sites making under a few hundred/mo their is no point.
Thanks, for the advice, I plan on buying 10 websites that make 1000+/month each. After reading this I feel it would be a good idea to form a LLC.
I am a Real Estate Investor, I get big tax deductions as it is. No need to register a LLC in Delaware.
Nevada LLCs has a low yearly registration, $125 I believe, and there is also no Nevada state corporate income tax. Delaware has a 1% tax.
If you are buying sites making over 20k/year(total), then you should really form an llc. Other than that, its debatable. If your sites make 10k/year(total), then you have to make a choice.
Fun Facts: People usually don't know these sort of things. So I have fun posting them. (May give you some insight into how a corporation actually protects you as well) Why does a corporation function as a legal entity (person) inside the United States? Answer: It was as a result of the 13th, 14th and 15th amendments of the United States Constitution. abridged version: In 1886 there was a supreme court case (Santa Clara vs Southern Pacific Railroad) which found that the Southern Pacific Railroad had legal rights under the 14th amendment as a person. What does this mean for a corporation? You have Free Speech, You have a right to bare arms, You have a right to an attorney, You have a right to the pursuit of life, liberty and happiness, etc, etc, etc, etc. As far as the law is concerned the company is a legal person. Up until this point, there were corporations; but the shareholders and board members were held liable for any action of the corporation. Today the only thing you really have to worry about is if it can be proven that you as a separate member of this corporate entity had the intent to commit a crime. Such as Ken Lay type deals, where they found him guilty of knowingly committing a crime. For things like tax code especially, you can claim ignorance (and usually get off if you have a trial jury just by presenting all 30,000 pages of IRS tax code for them to see and read through themselves.. To see if the jury understands what it says..).. The legality, setup constraints, etc of a corporation is determined at the state level. Each state has a multitude of variations in given laws. (as a non-related example) For instance, in texas and NH, if a police officer comes to your house to arrest you.. And you know he has the wrong person, or is making a mistake, you have legal authority through state law to kill the police officer. (crazy eh?). In all other states statues state that you must first submit to police and let the government sort out the mess. Note: I am not offering any sort of legal opinion, services, or council. I am not a lawyer, and you should consult with a licensed attorney at law on any legal matters.
I got that information from Judge Andrew Napolitano, you can listen.. Here: http://thepiratebay.org/tor/4023847/Alex_Jones_Show_-_Feb._11__2008_-_Judge_Andrew_Napolitano_(cf) http://en.wikipedia.org/wiki/Andrew_Napolitano