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What type of Legal Entity is your Web Hosting Company registered as?

Z

Zachary McClung

New member
Hello,

Currently, I am sitting in an taxation class and I am curious to what business entity you are? And, Why did you choose this form? I am not looking for legal advice just a curious pole.
 
Sole Proprietor here.
For my purposes here in Canada it is the best way to do things.

If people were to answer honestly I'm guessing that the majority of "hosting companies" that visit hosting forums would be answering unregistered.
 
Blue,

The goal of doing the poll without having to post was the objective of that. I would like to know in numbers not by names of who is unregistered or is legally operating. Please, feel free to posts a response or just respond to poll. If you have any comment into the actual registration or non registration let us know.
 
LLC is a must

if you want to build a real company you must LLC or Corp -- it is purely for your own protection!!!
 
rebelnet said:
if you want to build a real company you must LLC or Corp -- it is purely for your own protection!!!
Click to expand...

I have to disagree with this statement for one reason. The work that is put in by a Sole Proprietor and work put in by a single person LLC in most cases are the same. You can build a real company and then move up. Unless you have major liability I do not recommend starting as a Corporation or LLC
 
We're an LLP in the state of Illinois - which I'd say is the way to go if your state allows it, and you're wanting to keep things simple. It has the gains of liability limitation and tax benefits of an LLC, and has a cheaper annual fee. The only real downside is that the owners aren't able to sell stock.
 
I am a sole proprietor here. Becoming an LLC or Corporation is simply too expensive IMHO. Why pay $200-$500 to register an LLC or Corporation when I can pay $25 to start out with a DBA 🙂
 
Well from the poll results I see that alot of you have choosen S. P. I asked this same question on web hosting talk and got more people telling me not to even bother asking, then people posting with replies to my question!
What are the benefits to registering as SP? Why did you choose that, and was it a long draw out, red tape process?
I know when fileing for incorporation status you have to have officers, and legal records of EVERY LITTLE THING YOU DO! Is it the same with S.P.?
Thanks
 
Regestering as a corporation, as a small business, doesn't make a lot of sense. Especially in the hosting industry.
As a corporation you can be "forgiven" of any personal liability that you may incur in the operation of your business.

Since hosting, if you have a properly written TOS has little risk of any serious liability a sole prop. is the best way to go. You will also save lawyer fees.
If you have a partner then of course a partnership with appropriate legal papers would have to be formed.

I have one sole prop. and 2 partnership companies on the go at the moment each for a different purpose.

Make sure you do everything by the book and choose your partners wisely.
 
Nick H said:
I am a sole proprietor here. Becoming an LLC or Corporation is simply too expensive IMHO. Why pay $200-$500 to register an LLC or Corporation when I can pay $25 to start out with a DBA 🙂
Click to expand...

It'd save you a lot of money if your business ever gone bankrupt as they can not take over your personal assets, like your house, cars, etc.
 
In many states registering an LLC is a one-time expense of approximately $100. I've read several posts that imply that this expenditure is too much for the type of business. I look at it as a necessary start-up expense, just like the cost of a billing script. It allows for expansion and isolation of personal assets.
 
Our company is registered as a UK Ltd Company.
The advantages outweigh the disadvantages - I would strongly recomend registering your company because of limited liability.
 
Rob said:
Our company is registered as a UK Ltd Company.
The advantages outweigh the disadvantages - I would strongly recomend registering your company because of limited liability.
Click to expand...
I agree; especially in the U.K. You can tell alot by the legal entity of a provider and some posts above match what I was thinking 😉
 
I'm registered as an LLC, but I had it this way before I started doing hosting/reselling. I started out making baby slings and needed to protect my personal assets if I ever got sued.
 
Blue said:
Sole Proprietor here.
For my purposes here in Canada it is the best way to do things.

If people were to answer honestly I'm guessing that the majority of "hosting companies" that visit hosting forums would be answering unregistered.
Click to expand...

Blue, that is not the best way to do things are you totally exposed and risk is great

in Canada you need to spend the $600 and incorporate and separate yourself from any risk - that goes the same for the US or anywhere really
 
We are registered as a finnish Ltd, that is pretty much similar to UK's Ltd. IMHO if you are running a business you should always be registered and a $100 start up costs for LLC shouldn't be a deal breaker if you are serious about your business.
 
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