Hobby of domaining becoming a business:

[Compassion]

I am about to sell my "hobby" of 7 years of domaining/trading/development to a new entity to be created.


I would like to hear from NPers who have done a similar thing or know something about it.

Of course my exit strategy for the new company is - to sell out once the company is in its best standing - and start over.


Thanks,

 

[cache]

what is your question? How to setup a company to get tax advantage?

 

[Compassion]

what is your question? How to setup a company to get tax advantage?

If anyone has sold their domain assets to a company to be formed - how it worked out for them, any insight or knowledge about this transition..

 

[weblord]

i thought you already done this several times? i think you need to retain at least one company for you so you can do this over and over again.

 

[Compassion]

i thought you already done this several times? i think you need to retain at least one company for you so you can do this over and over again.

The plan is to sell the bulk of the company (aquality) to a huge player once it is streamlined, profitable and worth a large amount to a big company.



Exit Strategy is to sell rather than go IPO as in all businesses there has to be an exit strategy - mine is to build, trade, develop and sell either all at once - or in chunks - as certain profitable websites will make more sense for buyers in each particular niche.



My focus is developing what I already have - I view the domains as raw material and with some innovative fabrication of websites - the raw material can become much more valuable.

i thought you already done this several times? i think you need to retain at least one company for you so you can do this over and over again.

I am considering the idea of using aquality as the parent company for such future projects as:

foodpyramid,org
newyorkbusinesses,com
posted,net
dependenceonoil,com
tldn,com
suppressed,com

++++


I want to keep it simple and the simplest way may be to make each website a branch underneath the main business?

 

[weblord]

you seem to be a domain capitalista good luck in finding one :tu:

 

[Compassion]

One side to this - each site can be sold individually while leaving the core of the business intact...(using a parent company)




The goal is to sell the bulk of the main business for a healthy amount, but I don't see how certain niche names will be as of much value to a big buyer (yahoo, google, another silicon valley company who swallows entities like this weekly...)

so it may make more sense to sell some one at a time...

 

[snoop]

You'll need to get a lot of tax advice especially in relation to any capital gains in terms of selling the assets to the new company. Personally I wouldn't suggest moving it into a company form until it is worthwhile to do in terms of tax savings after taking into account increased accounting fees and formation costs.

I wouldn't expect that you'll be selling domains/sites to a "huge company" down the track, this is an extreme long shot, look at more realistic scenarios/exit strategies.

 

[Compassion]

You'll need to get a lot of tax advice especially in relation to any capital gains in terms of selling the assets to the new company. Personally I wouldn't suggest moving it into a company form until it is worthwhile to do in terms of tax savings after taking into account increased accounting fees and formation costs.

I wouldn't expect that you'll be selling domains/sites to a "huge company" down the track, this is an extreme long shot, look at more realistic scenarios/exit strategies.

More realistic exit strategies such as?


Who will buy a portfolio worth xxx,xxx earning xx,xxx per year?

yes the capital gains is an issue too..


The thought was to sell the hobby for $1 to the new entity, however, before doing so I need more consultation


Perhaps it is easier to keep it the way it is and continue with individual sales and projects...

 

[snoop]

Who will buy a portfolio worth xxx,xxx earning xx,xxx per year?

Domainers and small/medium domain focused companies I would imagine.