legal structure

**matt_15** · 07-06-2008 04:21 AM

What is the best legal structure for a eBay business?

**bizdev** · 07-06-2008 09:14 AM

Keep it simple...sole proprietorship. There is no need at this stage of your biz to jump on the LLC bandwagon. So many newbies believe the commonly mistaken notion that by incorporating your business you put a magic cloak around your assets. This is false.

So, keep it simple until your growth requires something different.

**matt_15** · 07-06-2008 10:04 AM

Thankyou for that

**JLeezer** · 07-06-2008 10:12 AM

Originally Posted by bizdev

Keep it simple...sole proprietorship. There is no need at this stage of your biz to jump on the LLC bandwagon. So many newbies believe the commonly mistaken notion that by incorporating your business you put a magic cloak around your assets. This is false.

So, keep it simple until your growth requires something different.

That is a mighty definitive response to a rather vague question. How might you be able to provide such exacting advice without knowing exactly what the OP is in need of?

**matt_15** · 07-06-2008 10:15 AM

What is the OP? You asked me that a while back and I dont know what it is. Were you asking me what the OP is in need of or were you asking the guy who responded to me?
I don't get it, could you explain please.

**JLeezer** · 07-06-2008 10:19 AM

Originally Posted by matt_15

What is the OP? You asked me that a while back and I dont know what it is. Were you asking me what the OP is in need of or were you asking the guy who responded to me?
I don't get it, could you explain please.

OP is just short for Original Poster (in this case, you)...the person that starts the thread. My question/comment was directed at the person that provided very narrowminded advice. Be aware, on this forum and many others, lots of people like to pretend they are full of good advice. These people can usually be identified by their specific responses to vague questions, such as has happened on this thread. If you'd like to provide more information about your situation (current assets, job, etc) and your potential business, I'd be more than happy to provide you information that will help you determine the best course of conversation you should have with an accountant, tax strategist, and/or attorney.

**bizdev** · 07-06-2008 05:58 PM

Ok, I'm back to respond to the poster that thinks I'm narrow minded.
I do tend to answer definitively when I believe I understand the question and I know I have a relevant response.

If you disagree with my advice then please say why. If you don't like that I provide direct answers, well that's your problem.

Believe me, if i don't know the answer I will not respond. But if I do know, then I will jump in and offer my advice. Isn't that what these forums are all about??

I am a regular at a few other business/entrepreneur sites and based on my responses alone, I have been approached by business magazines to author business guides (I have not taken them up on the offers yet due to conflicting schedules). I have authored my own startup manuals and a business plan book. I run my own website whereby I help others start their own businesses.

So, like I said, if I know the answer to a question, I will chime in. It was clear to me that the original poster wasn't asking about a complicated business question, but rather, about a new ebay "business".

**matt_15** · 07-09-2008 03:16 PM

all sounds cool bizdev! I'm reading a book on business planning by brian finch at the moment, would be interested in getting hold of yours too! And that's good, sounds like you have experience in business. Are you going to consider authoring the business guides? Also, please could you send me alink to your website, looks interesting.

Matt

**SerialEntrepreneurs.** · 07-09-2008 03:21 PM

I would think that a simple S corp incorporation would protect you from liability and also give you the ability to write off expenses thru your corporation.....I saw an interesting site on this IncorpLaw.com there is also good info at Blumberg

**bizdev** · 07-09-2008 10:22 PM

Originally Posted by matt_15

all sounds cool bizdev! I'm reading a book on business planning by brian finch at the moment, would be interested in getting hold of yours too! And that's good, sounds like you have experience in business. Are you going to consider authoring the business guides? Also, please could you send me alink to your website, looks interesting.

Matt

Thanks for the good words Matt. Actually I have authored the book "You Can Write Your Own Successful Business Plan" and the manual "One Stop Business Startup Kit" (which I recently stopped offering as a hard copy, but is still available in ebook form...170 pages). My signature contains the link to my website and blog (go to the Start Up page for the manual).

BTW, regarding the "simple" S corp (or LLC for that matter)...it is a falacy that by incorporating your business your assets are protected. My attorney let me in on a little known fact about that when I was incorporating my
franchise. I go into detail in the Startup Kit.

**matt_15** · 07-10-2008 03:02 PM

OK thanks bizdev. I'm going to read your ebook.

**BusinessAdviser** · 07-10-2008 04:26 PM

OK. This is getting a bit ridiculous. There is no possible way to give sound advice with regard to business entity selection based on "What is the best legal structure for a eBay business?" Think about it. If you posed this question to an attorney, do you REALLY think he would even THINK about offering a suggestion as to a single entity to the exclusion of another without inquiring further into the details of the operation, the needs and goals of the seller, and plenty of other questions relevant to determine which choice is best? The answer is no. As a result, there's no possible way to give a competent answer at this point. Additionally, for limited liability in this situation, I find it difficult to imagine why an S Corp would be recommended over an LLC, especially when it is unknown where the business entity will be formed.

**matt_15** · 07-10-2008 04:38 PM

OK.. thankyou

**bizdev** · 07-10-2008 04:48 PM

Originally Posted by ADVERTISE HERE!

OK. This is getting a bit ridiculous. There is no possible way to give sound advice with regard to business entity selection based on "What is the best legal structure for a eBay business?" Think about it. If you posed this question to an attorney, ....

This is a forum for YOUNG entrepreneurs seeking advice from other entrepreneurs...not necessarily from attorneys. When I respond it's from experience about a given topic.

The original question was obviously (to me anyway) from a young man regarding a simple ebay "business". I see no need to make things all convuluted and complicated for him.

Additionally, when people come to these forums seeking advice, I would like to believe that they understand that the responders are offering advice to the best of their abilities and that when it comes time to actually form their companies that they would know to seek the professional advice of an attorney and accountant.

We are here to help each other. But at the end of the day, everyone is responsible to take the advice given and do with it as they so choose. And while I may not have done so here, I do often advise a visit to an attorney AND accountant, especially since you can get some pretty good info with a free consultation.

**JLeezer** · 07-10-2008 08:00 PM

Originally Posted by ADVERTISE HERE!

OK. This is getting a bit ridiculous. There is no possible way to give sound advice with regard to business entity selection based on "What is the best legal structure for a eBay business?" Think about it. If you posed this question to an attorney, do you REALLY think he would even THINK about offering a suggestion as to a single entity to the exclusion of another without inquiring further into the details of the operation, the needs and goals of the seller, and plenty of other questions relevant to determine which choice is best? The answer is no. As a result, there's no possible way to give a competent answer at this point. Additionally, for limited liability in this situation, I find it difficult to imagine why an S Corp would be recommended over an LLC, especially when it is unknown where the business entity will be formed.

I'm so glad someone else actually agrees with the point I made above about answering a very vague question with very definitive answers.