Do You Have a Legal Domain Entity?

[EJS]

I am interested in knowing how many people who read my blog operate an official domain "business" with a separate legal entity.


http://www.elliotsblog.com/what-kind-of-business-entity-do-you-operate-4857

 

[lothos]

I don't read your blog, but yes I have an LLC.

 

[cdboard]

I don't read your blog.

 

[bgmv]

I do and I have a corp.

 

[ctbon]

I do and don't....er...do read your blog, don't have a separate company.

 

[enlytend]

I occasionally read your blog - LLC for my business in general, not just for domain sales.

 

[cache]

I do, however I always question whether this is necessary. What is the worst liability? In most cases, the worst is that you simply lose your domain. Of course there are always reasons to buy insurance more than necessary.

 

[SiberForum]

I think that people can do whatever they wish. And if your blog is interesting I suppose that will be read. No doubts.

 

[NLP]

I do, however I always question whether this is necessary. What is the worst liability? In most cases, the worst is that you simply lose your domain. Of course there are always reasons to buy insurance more than necessary.

It's not a question of simply losing your domain. If you were to have legal action taken against you, they could seize any of your assets, including your earnings and other domains. With a business entity, you're making sure that they can ONLY come after your business assets - in other words, only what's in your business bank account, not your house, car, etc. Without that, if you get sued, they can come after all of your personal assets.

I can't speak for an S-Corp, but at least with an LLC, you are merely a member and representative of the company. You and the company are two separate entities, thus ensuring that you're protected in the eyes of the law.

I met with a lawyer when I formed my company, and he told me an interesting tidbit - all of the Walmart delivery trucks have their own LLC, with their own paperwork, bank accounts, auto loans, etc. Therefore, if something happens and you get hit by one of those trucks, you can only sue THAT truck for its assets, not Walmart.

I thought that was sneaky, but genius.

 

[werty]

I dont read your blog, but have an LLC.

 

[Dotmainer]

I do, however I always question whether this is necessary. What is the worst liability? In most cases, the worst is that you simply lose your domain. Of course there are always reasons to buy insurance more than necessary.

At some point you are required to register as business (in most countries).
Why: Is this your hobby or are you looking to make profit ?

---------- Post added at 09:37 AM ---------- Previous post was at 09:33 AM ----------

It's not a question of simply losing your domain. If you were to have legal action taken against you, they could seize any of your assets, including your earnings and other domains. With a business entity, you're making sure that they can ONLY come after your business assets - in other words, only what's in your business bank account, not your house, car, etc. Without that, if you get sued, they can come after all of your personal assets.

I can't speak for an S-Corp, but at least with an LLC, you are merely a member and representative of the company. You and the company are two separate entities, thus ensuring that you're protected in the eyes of the law.

Thats not right !

-> http://en.wikipedia.org/wiki/Limited_liability_company

"It is important to understand that limited liability does not imply that owners are always fully protected from personal liabilities. Courts can and will pierce the corporate veil of corporations (or LLCs) when some type of fraud or misrepresentation is involved."

 

[stankovic]

LLC...is that important ?

 

[domainer700]

I met with a lawyer when I formed my company, and he told me an interesting tidbit - all of the Walmart delivery trucks have their own LLC, with their own paperwork, bank accounts, auto loans, etc. Therefore, if something happens and you get hit by one of those trucks, you can only sue THAT truck for its assets, not Walmart.

I thought that was sneaky, but genius.

There's nothing genius about that. They're just taking measures to save their own ass . No wonder most everyone hates Walfart.

 

[nrmillions]

a single member LLC will barely provide any protection at all. they can still come after your house, car, etc even if you keep all finances separate from your own and if there is no fraud. if you form a LLC just make sure it is at least 2 people.

 

[JoeBiz]

Keep it simple (sole proprietorship) as long as you can. When you start making enough money that the Self Employment taxes are eating you up, incorporate. But don't do anything without talking to a tax attorney. A lot of things that make good common sense to you and me don't work out that way in the tax code.

Keep it simple.

Best regards,
Charles

8^X

 

[lothos]

a single member LLC will barely provide any protection at all. they can still come after your house, car, etc even if you keep all finances separate from your own and if there is no fraud. if you form a LLC just make sure it is at least 2 people.

I don't think that's correct. If you keep funds separate and there's no fraud then why would they be able to go after your house? That's the whole POINT of a limited liability company. If you personally guarantee a loan or line of credit then that's another story.