Personally, I can speak from experience by saying that if you intend on having people working for you on whom you will be relying to deliver work then you should definitely invest in some level of incorporation - whether that be a C-corp, S-corp, LLC, etc. The reason for this is that you will personally be held liable if (more like WHEN) they fail to produce something for a client and there is an unhappy camper on the other end.
Ultimately, and obviously, you would like to avoid those situations altogether. IF you are working by yourself and are confident in your ability to deliver solid work then you can get by with a sole proprietorship. HOWEVER, and this is a big however, even when you DO deliver high quality work that doesn't fully protect you from some deviant people out there who will sue just because they know it is more costly to defend a suit than it is to settle. If you find yourself in such a situation it would be good to have the protections of a corporate structure. You should bone up on running a company properly if you do so though. Something as minor as paying for your dry cleaning or a personal dinner with a debit card from your "company" account can pierce the corporate veil of protection and expose you to personal liabilities you wouldn't have otherwise. Hope that helps! Terry -----Original Message----- From: [email protected] [mailto:[email protected]] On Behalf Of Holly Fortenberry Sent: Thursday, August 20, 2009 5:07 PM To: [email protected] Subject: [Refresh Austin: 4343] business model Hi folks, I've got a question I have not seen addressed yet. Which business model (sole proprietorship, LLC, etc.) do you think works best for a small web design firm? I'm planning to do my own design and basic development; but, I will contract with experts when necessary for advanced programming or graphic design needs. Thank you, Holly --~--~---------~--~----~------------~-------~--~----~ Our Web site: http://www.RefreshAustin.org/ You received this message because you are subscribed to the Google Groups "Refresh Austin" group. [ Posting ] To post to this group, send email to [email protected] Job-related postings should follow http://tr.im/refreshaustinjobspolicy We do not accept job posts from recruiters. [ Unsubscribe ] To unsubscribe from this group, send email to [email protected] [ More Info ] For more options, visit this group at http://groups.google.com/group/Refresh-Austin -~----------~----~----~----~------~----~------~--~---
