Hi, I just started a free host service and I would like to make it more "legal" to protect myself and my users. I am currently working on a TOS based on my competitor's TOS. Is that legal? I need a direction in this. Also, do I need to start a LLC? I am not selling anything (yet). I am just putting ads on each user's page. I am totally clueless and I am just turning 18 (young yes). I need a direction, and any help would be wonderful.
The benefit of having a LLC owning your stuff is (among others) limited liability, hence the name LLC. For example if something (whatever) goes wrong and you get sued, only your company will be at stake. If you own the site yourself, someone can come after you personally.