Originally posted by byalik
I am interested in either incorporating my business or forming an LLC. Basically I want it to protect my domain names and websites.
For example another site I saw has:
Copyright 2003 CollectibleCash.com - A PrankPlace.com Novelties, LLC. Company
I have a bunch of websites that I want to bring under 1 unit. It will be called "Byalik" so I will either have "Byalik Inc." or "Byalik LLC"
What one is better and how does it protect my websites?
Depends on what you want to protect yourself from...for most anything criminal, incorporation is often of little consequence. However, for civil and tax related matters, incorporation can often be advantageous.
For folks in the domain name resale business (domain name speculators), personal ownership, LLC, or a S-corporation is the likely the best way to go in regards to taxes...
In regards to protecting one's personal assets from business, a S-corporation or LLC is likely worthwhile...
On an aside, a C-corporation has some unique benefits, but also comes with some expensive tradeoffs in regards to taxes and thus is why I don't mention this type of entity anywhere else in this post. And note that other types of entity exist, as well as, some variations of the above entities mentioned - rarely is anything ever simple when it comes to the law
If operating a website, in which you feel there could be liability issues, then you may do better to have two separate entities - one for the website and one for the domains (or maintain personal ownership of them).
You really need to determine what assets you have, where and what potential liability exists, and types and amounts of revenue both current and future, among other things...write down as much information as you can in a concise, but descriptive manner, and then consult with an attorney and an accountant - you may have to meet with each more than one time and/or get alternative opinions, if what you seek is very complicated.
What people post here may give you some good ideas as to how to proceed...but definitely before you actually do anything, get professional assistance.
Ron
