Re: [Juglist] launching a website

[Chris Beecher]

Ray is absolutely right in all of this but underemphasizes another attribute of incorporation, namely that it allows one to create a separately taxable entity.  There are both benefits and obligations that are entailed here (often quite complex), but this is probably the single largest reason creation of a corporation where the business outcomes are vague. Ray Hooker wrote: Let me expand on the issue of trademarks and copyrights. If you incorporate, you only protect your corporate name in the state you incorporate. So someone can incorporate in another state and you can't stop them.. Unless they try to business in the state you incorporate. That is something to consider for those who incorporate in another state. A trademark could be protected if you came up with some special logo or something. The reasons that you incorporate (or create an LLC) are: - Limited liability. Not a big deal for a sole practitioner but it helps. You will may need to get a liability policy if you do much contract work. - Protects your clients from the IRS going after them for taxes and preserves your contractor status. Basically you become an employee of your company and do withholding appropriately. - Allows you to offer benefits and acquire group health plans. Note that you cannot offer cafeteria plans (various benefits paid out of pretax) until you have several years under your belt and add other employees. - Note that I found that being incorporated with a liability policy allowed me to do business with a wide variety of clients. You don't need a company for copyright issues. An individual can have a copyright issued to them. The real question is what you are trying to accomplish? Are you trying to protect your business name, intellectual assets or simply trying to do business. Ray -----Original Message----- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED]] On Behalf Of Adam Kuehn Sent: Friday, January 30, 2004 6:16 PM To: Research Triangle Java User's Group mailing list. Subject: Re: [Juglist] launching a website [EMAIL PROTECTED] wrote: Anyone with an experience in launching a website under new company banner? I am planning on launching a website and was wondering if I will have to start my own company for the copyright issues, etc. It would help if you let us know more about what you are trying to do and what your concerns are. Launching a website by itself, of course, doesn't require starting a company at all - not even if you are selling a product. You can 'start your own company' simply by selling stuff. There is no requirement to do anything at all if you just want to begin a sole proprietorship. However, if you are selling products or services that could potentially subject you to substantial liability, then you may want to form an LLC or incorporate in order to limit the claims that can be made against you personally. Although you can form an LLC or corporation yourself, I wouldn't without doing some serious reading first and then at least consulting with an attorney. It will cost you a few hundred bucks, but if you are wanting limitations on personal liability, presumably you have assets worth more than that that you wish to protect. Best to do your legwork and then hire a pro to get it right. On the other hand, you mention copyright as a concern. You don't need to do anything special to claim a copyright or common law trademark in your own works, either. So if claiming your own copyright or trademark is your primary concern, you may be able to get by with being a sole proprietorship. On the other hand, if you are worried that you might be infringing on someone else's copyright, trademark, or patent, then again the liability question is relevant and you may need to consider the LLC or corporation. What's right for you depends mostly on what it is that *you* need. Different forms of business exist because different things are appropriate for different circumstances. Seems like a non-answer, but really more information is needed before intelligent help could be provided. I'd be happy to follow up with you off list if you need. And no, I'm not an attorney.

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