Need Advice for Start Up!

[Kylem127]

I'm currently in the process of starting a website similar to autotrader.com. The site will (eventually) make it's profit from both advertising such as adsense and actual automobile ads. I have written "privacy policy", "Agreement" and a "terms and conditions" page's. My question is: What other legal precautions should I take? Is it necessary to create an LLC, become Incorporated, etc.?

Any other advice either (legal, about start up, ANYTHING lol) would be appreciated!

Thank You,
Kyle

[BusinessAdviser]

Creating a limited liability entity is usually advisable.

[Kylem127]

Thanks for the advice BusinessAdviser.




*Also I forgot to mention that I'm young and new to the whole online business idea, so any general info would be greatly appreciated...


Thanks,
Kyle

[chuff1026]

formal an LLC will protect you personally to a certain extent
i suggest that you consult an attorney though
because you do not want to come into anything down the road

[LSnyder]

Hi Kylem127,

Our office can assist you with your start up as well as the review of your privacy policy and terms and conditions for your website.
We specialize in the start ups of new online businesses.
I'd like to suggest to you a DVD that our office has put out with our own attorney as the actor. His name is Daniel Pepper and the title of the DVD is Legal Considerations for Starting an Online Business.
I posted a little about the DVD in the Legal Forum. Although he is not offering free legal advice throught the DVD, he is offering you help with the ins and outs of starting a business.
Please let me know if there is anything we can do to assist you.

Good Luck!

Lisa Snyder

[Kylem127]

I'm guessing I need to create some type of business entity simply for that tax id?

[Ruman]

Kylem,
I would wait until you get some traffic and some dollars flowing in to incorporate. Your risk in this business would be pretty low. Wait until you have some dollars coming in and use that money to form an LLC if you want to.

[Kylem127]

@Ruman

I was thinking the same way as you. BUT, some start up sites ask for a tax id in the beginning...


@everyone
Just for future info, Can I put multiple websites under one LLC?

Thanks!

[Ruman]

I am not sure whom you are saying are asking for a tax id, but most places that request a tax id will take your social as a substitute.

You can have multiple websites under one LLC, as well as multiple websites under NO LLC. I still say that the liability, etc, is not going to be a huge deal with a site like that. There is no need to have an LLC for your site, just do it, wait until you start getting income, then form an LLC if you feel the need.

LLCs are over-rated initially, I believe. I have one, but there has never been a reason I couldn't have done it as a sole-propriatorship.

[Kylem127]

Okay. That's exactly what I was looking for Ruman. Thanks alot!
I have more questions... lol
I am basically going to be managing a few different websites. Mainly affiliate drop ship websites. #1 Would you trust your SS# with these type of sites?

These sites will be low income (especially starting out), as this is just a hobby I'm getting into. What I don't want to happen though, is my "hobby" completely ruining my end of the year taxes lol. Should I expect any associated fees or additional tax costs?
(I will be deducting my share of "business related expenses to even this out)

[Ruman]

Well, your hobby/business ruining your end of the year taxes would be a good thing, ha ha. That means you made money at your business if you are ruining your refund.\\

Personally, I would use my SS#. I hate to recommend spending money on a LLC before you have even MADE any money.

The only additional tax costs, is that know you will be taxed at roughly 14% higher than your "employed" tax bracket %. This is due to you having to pay what your employer has to pay. If you make $10/hr at a job, the employer is actually paying ~$11.40/hr. This is typically called the "self-employment tax", but it is a little bit of a misnomer since employers normally pay this anyway when you are employed somewhere.

[Kylem127]

Okay, Thanks for everything Ruman. I really appreciate it. Let me know if I can ever help you out. I'm young and relatively new to this kind of thing, but I'll try my best. lol

Thanks Again,
Kyle