You need to see the following
professionals:
Lawyer (who can explain the differences
between the various entities that are available, and
the pro's and con's of each.
Accountant, preferably a CPA (who has
higher requirements and obligations and most likely
better book learning), to explain the TAX situation
regarding the various entities you can do business as.
They should discuss your ideas about future
funding (e.g., just your money, partners, shareholders
(voting and non-voting), bond-holders), in addition to
liabilities.
The laws and costs regarding the formation
of various entities change from year to year, so you
need to talk to someone who is up to date and
authoratative. Anecdotal info from a listserve may
point you in the right direction, but you will save a
lot of time, frustration, heartburn, and probably money
(because the time you spend trying to figure it out on
your own you can spend making money). Hire the lawyer
for an hour. Hire the CPA for an hour. Get the
straight info and move on.
They should warn you that unless it walks
like a duck, AND talks like a duck, AND smells like a
duck, AND looks like a duck, it aint a duck in the eyes
of the law. If you are going to be an LLC or a Corp,
you better dot all the I's and cross all the T's
because unless you have all the meetings, minutes,
resolutions, etc. they will pierce the corporate veil
in a heartbeat and hold YOU personally liable,
especially if you ever have the misfortune of hiring an
employee who runs over someone and does not kill them,
but turns them into a veg. The money judgment will be
staggering, and they certainly will try to go after you
personally.
As a starting off business, you will most
likely not be able to evade personal liability with
institutional lenders such as banks, because they will
have you PERSONALLY sign as co-debtor along with the
business entity, so they can go after YOU if the
business defaults.
An additional suggestion is to go talk to
(buy them a NICE lunch) someone already in the business
you want to get into, and pick their brain so you can
learn from their hard knocks. I suggest lunch because
it will give you an hour and a half and a graceful
ending, after which you can go out and impliment your
new knowledge.
? Computer Possessed ?
We do On-Site Exorcisms !
Tom 13 September 2007
Thomas E. Stirewalt Jr. - Computer Guru, Chief
Exorcist, & Attorney
5000 W. Esplanade #282; Metairie, LA 70006-2551
Voice1= 504-236-4915 (cellular and it may be acting
stupid)
Voice2= 985-705-5642 (also cellular and it may be
acting stupid)
Fax= 413-513-7444 (yes, it's an eFax number)
eMail= <mailto:Tom@ComputerExorcisms.coms>
Tom@ComputerExorcisms.com
<http://www.ancillarycomputerservices.com/>
www.AncillaryComputerServices.com
We Love Referrals !
From: owner-nolug@covington.redfishnetworks.com
[mailto:owner-nolug@covington.redfishnetworks.com] On
Behalf Of Chris Jones
Sent: Wednesday, September 12, 2007 20:22
To: nolug@nolug.org
Subject: [Nolug] Advice needed about starting a
business
Hey guys, I am starting up a web site with some pretty
big goals, and have a few other web sites that I run as
well, and my long term goal is for this to become
profitable for me. I'm considering forming an LLC or
corporation to umbrella all of my web projects under,
and just wanted to see what information any of you
might be able to provide me on the subject. How do you
go about registering for either company type, and what
are the pluses/minuses of either one? What is the
price difference between registering the two? I've
made and will be making a lot of financial investments
into this project, and have been told that you can form
a company and report a loss for up to 3 years in a row
on your income tax, so that would definitely help me
out in getting this whole thing off the ground.
Anyways, I just figured that some of you have already
been through this, and might be able to give me some
insight into it.
Thanks,
Chris
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Received on 09/13/07
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