Why there are so many LLC in domain business?

[bizbj]

Hello All,

I don't know what benefit I can get if I run my domain business with LLC not onl y run it in personal?

I found there have many small and big domain sellers run domain business by their LLC not by themself.

Someone can give me some advices?

Thanks

Bean

 

[AdoptableDomains]

A Limited Liability Company is a legal form of business that is probably the most popular for any business right now. It allows limitation of personal liability while still being taxed basically as a partnership or proprietorship. They are also very inexpensive to start. A corporation can be very expensive to start and requires lots of annual paperwork and corporate tax returns. Partnerships allow personal taxation, but do not shield you from liability. Proprietorships are the easist to do since it goes right on your personal return, but again there is no limitation to personal liability.

 

[Dave_Z]

From what I understand, if someone sues your LLC company, ideally they'll be
able to sue for the assets only of your LLC and not yours. Well, ideally that's
how it's going to work, anyway. :D

Did I get that right, Mark?

 

[Genialnames]

I think it is also because having an LLC it is possible to trademark a name at much less price than an individual entity can. I found a site just yesterday where they have a promotional campaign that say something like "Have your domain protected by a trademark....register as an LLC .." then I go to the pricing page and I saw that an huge discount (well it seem so) will be applied by registering a trademark with this company..
I am not American so I am not informed about regular prices, but I was tempted to try if I had a reliable person contact in the USA to open an LLC in the USA, may be I will do it .

 

[EbookLover]

LLC's do not necessarily relieve you from liability or limit it as much as some people think. It matters on the situation and the business. Never incorporate in any form without the guidance of a competent accountant and a competent lawyer. Many people just go out and form an LLC because they think that they are not able to be held liable in any case, but this is far from reality. THere are other incorporation forms that may actually lessen your liability more than the LLC form depending on your business and situation.

 

[PoorDoggie]

Lamens terms

Private - with a normal business, any debts or anything comes out of your pocket. This could include legal fees, compensation etc...

LLC - this means that you only pay what the company is worth. Anything that is yours is yours. If you get sued, for instance, you only pay out of the company kitty.

 

[barefoottech]

Depends on Country
In a lot of countries the Directors and / or Shareholders can still be held responsible for the debts.
Here in Australia we have directors in jail doing serious time for their role in Running up company debts
thinking they were not responsible.