advice Domain names ownership - Under my business or my own name before selling?

[AaronELL]

Hello Everyone,

Any help is greatly appreciated!

Are your domain names held in an account with your own personal name or under some type of business you own like an LLC?

Should you hold domain ownership under a business like an LLC or my own name before trying to sell and/or before selling?

Are there any liability/personal liability things to consider before selling a domain name?

I'm not really trying to find out about anything with taxes, writeoffs, etc, and have already learned to avoid anything with trademarks, famous names, etc.

Thank you very much for any advice or comments!

Aaron

 

[sOliver]

As you pointed out, there are only liabilities if you are acting in bad faith and register a trademarked name. As long as you register generic keywords you should be fine.

The registrant does not matter as long as the Whois data is accurate. However, when you sell a name, always use your business name (in case of a sole prop your own name).

Please note Im not a lawyer so I cant give you any legal advice.

Also keep in mind taxation may be lower for a LLC/LTD and your personal tax rate would be higher (at least thats the case in Europe). So if sell a domain as a LTD I then pay like 10% taxes and can use the money to invest elsewhere even in a few years. As a sole prop you have to pay like 23-47% taxes if you dont spend the money in the same year depending on your annual income (again, Europe!).

 

[AaronELL]

Hi sOliver, awesome of you to reply!

If you don't mind, could you please explain more as to why you should always use your business name?

Also, are you saying you first need to switch the Whois to your business name (mine is a LLC) before selling (before trying to sell too?) if currently in your personal name? Within the same account or set up a business/LLC account and transfer from personal to business?

Sorry for all the extra questions! Thank you again for your time and help!

Aaron

 

[Kate]

The best would be to consult with a CPA.
If you operate as a business, your domain-related costs can be written of as expenses for tax purposes. There are some benefits.

However, if you are just starting out with domains - this may be overkill. Start small, and see if you can achieve anything at all. Few domainers are making enough money to make it worthwhile...
Also, an LLC is not the only type of corporate structure available to you. There are tax implications here.

 

[sOliver]

The best would be to consult with a CPA.

Ill second that, but if youre on a budget go to those "ask a lawyer / tax accountant" sites and pay like 60 bucks for your questions then you have something IN WRITING. If you have never talked with an accountant before, find a local accountant and pay him like 250-300 for a consultation.

Anyway it doesnt really matter what the WHOIS data says as long as it is accurate (or you risk losing the domain).

However, it does matter who paid for the domain. On the bill it should list your business name but even that is not a problem because it can be corrected.

You dont need an LLC. LLC will cost you a lot, LTD as well. I pay about 2k EUR per year just for the basics of maintaining it. Go for a sole prop if you havent started a company yet.