When to use LLC

[startupsold]

Some domain investors use their company name plus LLC, is it legal to use this without any registration or incorporation?

Best,

 

[alien51]

is it legal to use this without any registration or incorporation?

No. That would be fraud.

 

[snowbird]

People establish an LLC in order to show a separation between a personal identity and a company. By having an LLC, you are eliminating some of your liability as an individual and placing that liability under the identity of the company (the LLC). When doing this, you need to file the appropriate paperwork and follow the laws required by your state so your company is documented appropriately. If you have never done this before, I advise you to contact a local attorney who can help you get that set up if it is something you are interested in.

 

[startupsold]

Appreciate it

 

[ryankidman]

It is surly fraud and trust me if they are caught penalty is very high

 

[verbster]

People establish an LLC in order to show a separation between a personal identity and a company. By having an LLC, you are eliminating some of your liability as an individual and placing that liability under the identity of the company (the LLC). When doing this, you need to file the appropriate paperwork and follow the laws required by your state so your company is documented appropriately. If you have never done this before, I advise you to contact a local attorney who can help you get that set up if it is something you are interested in.

It isn't very difficult to set up an LLC, but if you want any of the benefits and protections one offers, be sure to have more than yourself as a member, otherwise it's the same as a sole proprietorship.

 

[snowbird]

It isn't very difficult to set up an LLC, but if you want any of the benefits and protections one offers, be sure to have more than yourself as a member, otherwise it's the same as a sole proprietorship.

Not necessarily. Sure filing your taxes might be very similar to that of a sole proprietorship if your a single member LLC, but the shield of liability is there to protect your personal assets if done correctly. If a single member LLC was identical to a sole proprietorship, then there would be no need for a Single Member LLC to even exist. I have spoken with an attorney about this before and there are steps that need to be taken to make sure that shield of liability is there. You need to separate your personal assets from your business assets and operate using a business checking account, document business purchases and expenses on a business ledger of some sort. Have articles of organization setup, a business plan, if you invest money into your business, document it as being a loan from yourself or a family member that is paid back over time. It's important to keep your business finances separate from your personal finances. As long as that is done and you clearly show your operating as a company, then your company should be what is at risk and not your house or your car. But again, id strongly advise speaking to an attorney about this regardless.

 

[angel69]

Has anyone tried LegalZoom for creating an LLC ? I know it can't possibly be as good as a live lawyer in your own city but they advertise they have lawyers in all states to vouch for the accuracy of their legal transactions

Also, incorporating would be the best shield for large domainers but I know the legal costs of creating it are much higher than for an LLC, and CPAs charge an arm and a leg for annual tax filings for a corp even when there is no activity

Are there cases where incorporation would be more suitable than an LLC, other than offering the ultimate insularity for the domainer (like being able to add assets to the corp besides domains, tax advantages ....?)

:gl:

 

[sella.ca]

Is it fraud if you don't use it for fraud? If I call myself a doctor, but never do anything that would be practicing medicine without a license, is that fraud? What if I write a health book and choose "Doctor Bob" as a pseudonym / "pen name"?

You're of course better of not messing around like that, but it's how you use a name that gets you in trouble.

 

[alien51]

Is it fraud if you don't use it for fraud? If I call myself a doctor, but never do anything that would be practicing medicine without a license, is that fraud? What if I write a health book and choose "Doctor Bob" as a pseudonym / "pen name"?

You're of course better of not messing around like that, but it's how you use a name that gets you in trouble.

It becomes fraud, only when you get caught.

For advertising purposes, "titles" are used to project an image of being legit. No one would check you out anyway (or atleast it would be difficult to check you out).

Your only issue would be on the type of transactions you make. If there is a third-party involved that would require you to prove your identity, and your property is registered to a "fictitious" company, then the transaction might not push through because the third-party may not allow it.

 

[sella.ca]

Agreed. Even registering a domain with a fictitious name is technically contract fraud. "Invisible" contracts are everywhere

A friend of mine's dad used to say "I don't care what you do... As long as you don't get caught!" :p

 

[alien51]

Even registering a domain with a fictitious name is technically contract fraud. "Invisible" contracts are everywhere

That would push you to low dollar sales only.

Big time deals would often require that you come out clean, or else the deals will never get done.