Do I need to incorporate inorder to copyright material?

**AI87** · 02-17-2009 12:06 PM

I am into internet marketing and usually sell affiliate products. I am thinking of creating my own digital products such as e-books, audios, and videos. Do I need to incorporate in order to sell or even give away these things, or can I just have it copyrighted? Also should I copyright my website?

Thanks.

**Gene** · 02-17-2009 12:11 PM

My understanding is that most anything that you come up with is automatically copy written until 50-70 years (in most of the world) after your death. So that shouldn't be a problem.

As far as incorporating, I'd wait and see how well your business does. You can start off with a sole proprietorship type set up, but if things really begin to take off, then you should probably incorporate. I hope this helps.

**AI87** · 02-17-2009 12:45 PM

Yea definitely helps, thanks.

The reason I asked was because I was afraid that maybe someone else could kind of take your idea and say that he came up with it earlier or something.

**Gene** · 02-17-2009 12:50 PM

Well for something like an invention, you need a patent to protect your idea, but for books and such, I believe that a copyright protects you. To be entirely certain though, you should probably contact a lawyer.

**bestill** · 02-17-2009 02:57 PM

Don't incorporate until you get going. I learned that the hard way and had to shut down and deal with a lot more then I wanted to know.

**mthomas** · 02-17-2009 03:12 PM

Copyrighting has semi-recently become automatic, it is registering the copyright that costs money. This proves that you wrote material on a specific date so if someone else copies you, you have dated proof that you wrote it first.

As for incorporating, you certainly don't have to incorporate right away if you don't want to. However, it might be easier for you to do so right away. Opening up a business checking account as a sole prop, and then filing for incorporation later on will often require you to close out the account and open a new one. It would probably be easier to build business credit more quickly if you start out as a corp right off the bat.

Whatever you do, if you file to open a corporation, make sure it is a Sub-Chapter S Corporation, as this will prevent double taxation for S-Corp shareholders.

**AI87** · 02-18-2009 11:47 AM

Thanks for the info guys, really appreciate it. Not thinking of doing any of this soon but did want to know what I should do when the time comes. Anymore feedback is welcomed as I am sort of new to this. I know I can research it, and I will, but I also like to hear what other individuals have and see if anyone has had any experience. Thanks again

**paul2145r** · 02-18-2009 01:38 PM

My recommendation to most of my clients is to always have a layer of protection against liability between themselves and any business that they are engaged in. In the U.S., many business professionals agree with me that the best business entity is an LLC. It gives you the liability protection that you need without requiring the rigors of a corporation.

In your situation, you shouldn't worry so much about someone else ripping off your content, as someone claiming that you stole theirs. Copyright cases are very tricky, especially since the Huge growth in the publishing world with the advent of the internet. Always watch your back in this business, and make sure not to cross any lines with what you write.

Good luck though- being a content writer and marketing it yourself can be very rewarding.

**Gopal Dev** · 02-18-2009 02:07 PM

Unless you're making loads of money or signing many contracts with different people/entities there is no need to incorporate just yet. Corporations only get taxed after a certain dollar amount of net profit so set up a simple sole-proprietorship which will impact your personal finances and allow you to deduct your business expenses and perhaps see a small reduction in your owed income tax. Start simple and see where your business goes, then make bigger moves. Best!

Gopal (The Musical Mad Scientist and Entrepreneur)
The v-Fusion Group

**mthomas** · 02-18-2009 03:09 PM

Originally Posted by paul2145r

My recommendation to most of my clients is to always have a layer of protection against liability between themselves and any business that they are engaged in. In the U.S., many business professionals agree with me that the best business entity is an LLC. It gives you the liability protection that you need without requiring the rigors of a corporation.

LLCs are generally the most useful when there is more than one owners ("member") since LLCs allow a lot more flexibility in profit distributions among members (profits do not have to be distributed based on % ownership).

However, other than this one advantage, S-Corps share every single advantage that an LLC has, with the added benefits that shares of ownership are much easier to be sold, thus making it easier to raise money.

**paul2145r** · 02-18-2009 09:02 PM

Gopal- when you are referring to the taxation of corporations- what do you mean by a dollar amount? It is true that you do not have to claim any profits lower than $600 per anum, but that rule general applies to private parties (or sole proprietorships).

Thomas- I agree with your response, but I still recommend that new business owners shy away from S-Corps, for the simple fact that they still require that the business owner keep minutes of meetings, file additional documentation following incorporation, and other trivialities. Most of this will seem elementary to you and I, but the newer business owner may have some trouble.

**AI87** · 02-20-2009 01:05 PM

Yea this is all pretty much new to me. I wasn't looking into having shareholders or anything unless you can be your own and only shareholder. I'd pretty much be running this on my own, but I believe that there are more advantages of doing some kind of corporation instead of a sole proprietor, but then again I'm new to this

**BusinessAdviser** · 02-20-2009 09:41 PM

Originally Posted by mthomas

Copyrighting has semi-recently become automatic, it is registering the copyright that costs money. This proves that you wrote material on a specific date so if someone else copies you, you have dated proof that you wrote it first.

As for incorporating, you certainly don't have to incorporate right away if you don't want to. However, it might be easier for you to do so right away. Opening up a business checking account as a sole prop, and then filing for incorporation later on will often require you to close out the account and open a new one. It would probably be easier to build business credit more quickly if you start out as a corp right off the bat.

Whatever you do, if you file to open a corporation, make sure it is a Sub-Chapter S Corporation, as this will prevent double taxation for S-Corp shareholders.

Disagree.

First, copyright law has been around for a while. As soon as you write something down or create some other type of copyrightable material, you own the copyright to it. Paying for the copyright puts the nation on notice that you're the copyright owner, so no one can claim original authorship of the material subsequent to that date, even if it was original. However, the copyright was already created, regardless of registration.

Second, to advise "whatever you do, if you file to open a corporation, make sure it is a Sub-Chapter S Corporation, as this will prevenet double taxation for S-Corp shareholders" is horrible advice. Why? Because this may be the right advice in some situations, but not in every situation. Think about it. If this were really the case, would all the multi-billion-dollar corporations out there really be C corps? The question comes down to size, future goals, investors, etc. Blanket statements are NEVER good.

**BusinessAdviser** · 02-20-2009 09:43 PM

Originally Posted by Gopal Dev

Corporations only get taxed after a certain dollar amount of net profit so set up a simple sole-proprietorship which will impact your personal finances and allow you to deduct your business expenses and perhaps see a small reduction in your owed income tax.[/url]

Haha. That's just silly. Don't follow this "legal advice."

**BusinessAdviser** · 02-20-2009 09:45 PM

Originally Posted by mthomas

LLCs are generally the most useful when there is more than one owners ("member") since LLCs allow a lot more flexibility in profit distributions among members (profits do not have to be distributed based on % ownership).

However, other than this one advantage, S-Corps share every single advantage that an LLC has, with the added benefits that shares of ownership are much easier to be sold, thus making it easier to raise money.

I disagree. Why are LLCs "most useful when there is more than one owner?" Not useful with one owner? That's ridiculous.

And S Corps share every single advantage an LLC has? Such as LESS STRICT REQUIREMENTS?! Not exactly.

Don't trust this advice.