Corporate Structure

[markk]

I think it is time to individually incorporate departments of my domain / web business.

I am thinking something like this:

Company A (Typo's, Possible C&D, Trademark, Other Legal Risks)
Company B (Brandable, generic, premium names, etc. Minimal legal risk)
Company C (Developed websites with minimal income)
Company C+ (Individually developed websites with substantial income)
Company D (Holdings Company)

I am not too familiar with corporate structures but have somewhat of an understanding. I know I should be asking a lawyer these questions but my lawyer doesn't specialize in domains or intellectual property and I know that there are some very smart lawyers on this forum that may be able to help me out with the ground work.

Also, I am a Canadian citizen and resident. Would it be more feasible to incorporate in Canada or in the United States and why?

 

[Steen]

That's a lot of corporations. Why would you not have two, if you want multiples.

Legal risk and "not so much" legal risk.

Also, a corporation does not provide 100% protection. Just two weeks ago several companies were served (by the FTC) at the "Internext 2005" conference and two or three individuals involved in the corporations were also being sued (by the FTC, personally.

 

[jberryhilljberryhill is verified member.]

http://www.jura.uni-duesseldorf.de/aal/AAR/SoSe04/corporation_caselaw4_walkovszky.pdf

 

[markk]

That's a lot of corporations. Why would you not have two, if you want multiples.

Legal risk and "not so much" legal risk.

Also, a corporation does not provide 100% protection. Just two weeks ago several companies were served (by the FTC) at the "Internext 2005" conference and two or three individuals involved in the corporations were also being sued (by the FTC, personally.

Interesting article. The FTC bust was mainly towards spam right? I do realize that officers of a corporation can be held liable when breaking the law. Would you happen to know what the following activites are classified as? Criminal or Civil

Cybersquating

Copyright infringement (use of others pictures, text, and/or other content)

Making money off expired domain traffic using simular ideas as the previous website

Trademark violation

I see your point about having only 2 corporations, what about a holding company though, do they play an important role in protecting assets? If a single website owned by a corporation is making a substantial amount of income (let's say $10,000 - $20,000), don't you think that the website should be individually incorporated? In these days a company can be sued for lot's of money over very small issues. One lawsuit can bring them to the ground. I am sure you heard of Acacia.

I hope to get a better knowledge of how a corporate structure should work for an entrepreneur with multiple businesses in multiple industries.

Thanks for your help

 

[Frontline]

Its all about the LLC

 

[Steen]

Would you happen to know what the following activites are classified as?

I am most definitely not a lawyer and am not in a position to offer legal advice.

The case I refer to is CV-S-05-0002-PMP-LRL ( http://www.ftc.gov/os/caselist/0423168/0423168.htm ).