To Incorporate or Not To Incorporate... That is the question.

Discussion in 'Legal Issues' started by MrMarco, Dec 28, 2005.

  1. #1
    I've started other corporations for various other businesses. Now that I'm venturing out into cyber-world I was owndering if it's necessary to incorporate (Sub S or LLC) for protection. I will most certainly have different avenues of income on the net. I'm just not too sure if this is a necessary step. I'm leaning towards forming a company. Old habits die hard.

    Any insight on the matter would be greatly appreciated.
     
    MrMarco, Dec 28, 2005 IP
  2. raycampbell

    raycampbell Peon

    Messages:
    109
    Likes Received:
    8
    Best Answers:
    0
    Trophy Points:
    0
    #2
    I formed a Subchapter S for my internet stuff.

    Web sites can get sued just like any other business, and assuming you have some other assets it is better that the correct party to sue is a corporation and not you personally. It is not a total solution, but it is a good first step in limiting personal liability.
     
    raycampbell, Dec 28, 2005 IP
  3. MrMarco

    MrMarco Active Member

    Messages:
    140
    Likes Received:
    2
    Best Answers:
    0
    Trophy Points:
    53
    #3
    raycambell - That's what I feel exactly. More than likely a single Sub S and then use DBA's/Ficticious Names for other Web Based enterprises.
     
    MrMarco, Dec 28, 2005 IP
  4. marketjunction

    marketjunction Well-Known Member

    Messages:
    3,779
    Likes Received:
    187
    Best Answers:
    0
    Trophy Points:
    183
    #4
    LLCs are a great choice.
     
    marketjunction, Dec 28, 2005 IP
  5. raycampbell

    raycampbell Peon

    Messages:
    109
    Likes Received:
    8
    Best Answers:
    0
    Trophy Points:
    0
    #5
    Depends on your needs. There is no one size fits all answer; the correct answer always depends on your personal needs.

    Last I checked, LLCs cost a trifle more to maintain on an annual basis in both Illinois (my home state) and Delaware, so I went with a Sub-S since I didn't need any of the different features offered by a LLC. An LLC would have worked, however, and I agree it would be a good idea to compare an LLC against the other corporate forms in light of your own needs.
     
    raycampbell, Dec 29, 2005 IP
  6. marketjunction

    marketjunction Well-Known Member

    Messages:
    3,779
    Likes Received:
    187
    Best Answers:
    0
    Trophy Points:
    183
    #6
    Yea, you really need to look at the state and your needs.

    I don't know many things where one answer fits all. :D
     
    marketjunction, Dec 29, 2005 IP
  7. bigp

    bigp Peon

    Messages:
    293
    Likes Received:
    14
    Best Answers:
    0
    Trophy Points:
    0
    #7
    I'm not a lawyer, but I would certainly look at a corporation if you're looking to limit your personal liability. Protecting your personal assets is pretty important in my book. Good luck.

    FYI - I used LegalZoom.com and it was really easy to do.
     
    bigp, Dec 31, 2005 IP
  8. godxilla

    godxilla Peon

    Messages:
    192
    Likes Received:
    4
    Best Answers:
    0
    Trophy Points:
    0
    #8
    only do an LLC if your sales are going to be less than 500k per year...

    LLC make you pay $800 per year fee
     
    godxilla, Jan 8, 2006 IP
  9. Greg-J

    Greg-J I humbly return to you.

    Messages:
    1,844
    Likes Received:
    153
    Best Answers:
    0
    Trophy Points:
    135
    #9
    If that is the question, the answer is quite simple. To incorporate.
     
    Greg-J, Jan 10, 2006 IP
  10. cottoncandy

    cottoncandy Peon

    Messages:
    69
    Likes Received:
    2
    Best Answers:
    0
    Trophy Points:
    0
    #10
    If you can afford to incorporate your business, the do it by all means. It has more protection. :)
     
    cottoncandy, Jan 16, 2006 IP