Is LLC important for freesite owners?

As I progress in my quest to start my own freesite, I learn that minors can't technically own companies (which I knew before, but didn't realize how much of an impediment it would end up being).

Is it important to have an LLC for the freesite? What are the pros and cons?

I just don't know anyone over 18 that I'd trust with my freesite; I'm trying to figure out how to create a [i877258dd49]professional[/i877258dd49] freesite whilst maintaining control of it.

Suggestions and discussions welcome as long as licertainli idiots don't post, or, if they do, are ignored by everyone else.

i dont know much about LLCs, but don't they somehow protect you legally if someone were to sue, etc.?

and they offer some tax benefits if i remember right

You can trust me...

Just hand me the keys...

[quote4b30407e4d="justinfreestuff"]i dont know much about LLCs, but don't they somehow protect you legally if someone were to sue, etc.?

and they offer some tax benefits if i remember right[/quote4b30407e4d]

Yeah, they protect people who might sue me, but how many people actually sue freesites? (Other than PPUSA, but that's because the fuckers are fucking everyone over.)

Do you know what kind of tax benefits?

LLC = Limited Liability Corporation

which means, you're not as liable as you would be if you were an actual Corporation. It's generally for small businesses. And if you got sued and lost the case, yea you'd still have to pay.

I think it just protects you in case you go bankrupt or something.

Aye, ok. Technically, though, isn't it illegal for me to run my company without an LLC? Won't having a company run by a minor cause a bunch of headaches?

Will I have to sign any contracts at any time? Does anyone even need to know the freesite is owned by a minor?

What an LLC does is protect your personal assets, so if you are found guilty of negligence or gross negligence, you can keep your house, but anything your business owns would probably be sold to cover the damages/court costs.

I took a really hard look at the options for FusionCash and eventually opted for what's called a 'general partnership' which allows us to operate under a business name and provides some basic stuff (partnership agreement, etc). i talked to a tax specialist and he said that a lot of small businesses, especially on the internet, tend to jump into being an LLC too quickly because it's sort of en vogue. honestly, there is nothing wrong with just being a sole propreieter. thats how we did fusioncash until just this month.

edit to my knowledge, you can be a sole prop at any age. i ran fipg as a sole propreieter business when I was 17 and filed/paid taxes as such. you're going to run into problems with affiliate networks, thoguh, since most require you to be 18.

This is really good info I'm getting from people here, thanks.

[quotea34e11641a="Admin"]I took a really hard look at the options for FusionCash and eventually opted for what's called a 'general partnership' which allows us to operate under a business name and provides some basic stuff (partnership agreement, etc). i talked to a tax specialist and he said that a lot of small businesses, especially on the internet, tend to jump into being an LLC too quickly because it's sort of en vogue. honestly, there is nothing wrong with just being a sole propreieter. thats how we did fusioncash until just this month.[/quotea34e11641a]
I did a quick google search and from my understanding a general partnership is just an understanding between two people that has no legal value, correct? Basically, if two people can get along and run a business without resorting to lawyers this should work well; am I correct in deducting this?

[quotea34e11641a]edit to my knowledge, you can be a sole prop at any age. i ran fipg as a sole propreieter business when I was 17 and filed/paid taxes as such. you're going to run into problems with affiliate networks, thoguh, since most require you to be 18.[/quotea34e11641a]
How do affiliate networks verify this? I know there are minors that own freesites; how do they manage that?


EDIT If it helps, I am probably going to do this with one other person, who is also a minor. I'm just trying to get information on how to avoid legal trouble of any kind.

My ex girlfriends dad welded in his part time. Makes almost as much as his full time job. He's been doing it for ages, but has always just operated as 'himself.'

He recently had been looking into becoming LLC or Inc (looking at all his options). Like admin said before, it limits liability.

Example

He makes a stainless steel kitchen counter for a resturaunt. Immigrant dances on said counter drunk, falls down and breaks neck. Sues for lost wages, etc. Wins.

As an LLC, the said worker would only be able to get any money in the Welding Company LLC bank account in addition to maybe selling off all the LLC's tools.

Without LLC status, the judge could evict the family Sell the house. Sell personal belongings, award money in other bank accounts, etc.


The problem with this is, I don't see how most Websites would need this sort of protection. Maybe the diet pill sites incase someone dies.

Ok, in that case I don't think I will need an LLC. Thanks for the help everyone.

(If anyone wants to give any other advice as to the legal aspect of running a freesite with a partner, I'm all ears.)

Some affil networks will not check your age, some will. I think most minors just do it in a parent's name.

I would be careful about lying about your age, as it has a tendency to catch up with you (and if you violate the affiliate agreement your earnings are usually forfeit).

[quotee2945712e0="EatChex89"]LLC = Limited Liability Corporation

which means, you're not as liable as you would be if you were an actual Corporation. It's generally for small businesses. And if you got sued and lost the case, yea you'd still have to pay.

I think it just protects you in case you go bankrupt or something.[/quotee2945712e0]


Admin already provided a lot of valuable information above, but let me just clear this up. LLC is a Limited Liability Company (not Limited Liability Corporation) and the statement "you're not as liable as you would be if you were an actual corporation" is, quite frankly, wrong. Actually, if you were to take a quick glance at the various forms of business ownership, it would look like

[be2945712e0]Sole Proprietorship[/be2945712e0] - One owner, no differentiation between the owner and the business.

[be2945712e0]Partnership[/be2945712e0] - Two or more owners, no differentiation between the owners and the business.

[be2945712e0]Limited Liability Corporation[/be2945712e0] - One more owners, allows for liability to be limited to business assets; may be recognized as a sole proprietorship, partnership, or corporation for tax purposes.

[be2945712e0]Corporation[/be2945712e0] - One or more owners, recognized as a seperate entity, subject to double taxation.


There are a few other types of business entities including S Corps and Limited Partnerships...but I'm just trying to provide a brief overview. Check out http//sbinformation.about.com/od/ownership1/ or any business ownership text for more information ) The IRS website should also have information on the tax implications for each business entity

[quoteaa6cb00af8="FreeOffersNow"][quoteaa6cb00af8="EatChex89"]LLC = Limited Liability Corporation

which means, you're not as liable as you would be if you were an actual Corporation. It's generally for small businesses. And if you got sued and lost the case, yea you'd still have to pay.

I think it just protects you in case you go bankrupt or something.[/quoteaa6cb00af8]


Admin already provided a lot of valuable information above, but let me just clear this up. LLC is a Limited Liability Company (not Limited Liability Corporation) and the statement "you're not as liable as you would be if you were an actual corporation" is, quite frankly, wrong. Actually, if you were to take a quick glance at the various forms of business ownership, it would look like

[baa6cb00af8]Sole Proprietorship[/baa6cb00af8] - One owner, no differentiation between the owner and the business.

[baa6cb00af8]Partnership[/baa6cb00af8] - Two or more owners, no differentiation between the owners and the business.

[baa6cb00af8]Limited Liability Corporation[/baa6cb00af8] - One more owners, allows for liability to be limited to business assets; may be recognized as a sole proprietorship, partnership, or corporation for tax purposes.

[baa6cb00af8]Corporation[/baa6cb00af8] - One or more owners, recognized as a seperate entity, subject to double taxation.


There are a few other types of business entities including S Corps and Limited Partnerships...but I'm just trying to provide a brief overview. Check out http//sbinformation.about.com/od/ownership1/ or any business ownership text for more information ) The IRS website should also have information on the tax implications for each business entity[/quoteaa6cb00af8]

blah blah blah blah.

[quoteef6ba06330="ilanbg"]Ok, in that case I don't think I will need an LLC. Thanks for the help everyone.

(If anyone wants to give any other advice as to the legal aspect of running a freesite with a partner, I'm all ears.)[/quoteef6ba06330]
Yea, you probaly don't NEED it but it helps just in case something major goes wrong then you won't have to forfeit any personal assests, just business assest.....I think....

I just can't figure out what [i5e817a2d7f]could[/i5e817a2d7f] go wrong, and getting an LLC would make things extremely difficult for me. I don't think I'll get an LLC; its likely I'll get a general partnership.

This was invaluable for me, y'all. I'm still on the lookout for information on difficulties a minor would have starting a freesite (I think I have all the other aspects covered, more or less). Can't never have not enough information. wink

FYI I'm running a sole proprietorship...check out the link I posted about there is an article about deciding which form of ownership is right for you. Good luck.

Thanks man.

If you own an LLC don't you eventually have to convert to a sole proprietorship or partnership? I thought LLCs were just to help small businesses grow enough to become a full-fledged corporation shrug

I would probably go with a sole proprietorship also since in partnerships you have to create some kind of contract for all participants to abide by, and I wouldn't get into a business with friends/family....it's not a good idea.

[quote9a711b6ac1="FreeOffersNow"][quote9a711b6ac1="EatChex89"]LLC = Limited Liability Corporation

which means, you're not as liable as you would be if you were an actual Corporation. It's generally for small businesses. And if you got sued and lost the case, yea you'd still have to pay.

I think it just protects you in case you go bankrupt or something.[/quote9a711b6ac1]


Admin already provided a lot of valuable information above, but let me just clear this up. LLC is a Limited Liability Company (not Limited Liability Corporation) and the statement "you're not as liable as you would be if you were an actual corporation" is, quite frankly, wrong. Actually, if you were to take a quick glance at the various forms of business ownership, it would look like

[b9a711b6ac1]Sole Proprietorship[/b9a711b6ac1] - One owner, no differentiation between the owner and the business.

[b9a711b6ac1]Partnership[/b9a711b6ac1] - Two or more owners, no differentiation between the owners and the business.

[b9a711b6ac1]Limited Liability Corporation[/b9a711b6ac1] - One more owners, allows for liability to be limited to business assets; may be recognized as a sole proprietorship, partnership, or corporation for tax purposes.

[b9a711b6ac1]Corporation[/b9a711b6ac1] - One or more owners, recognized as a seperate entity, subject to double taxation.


There are a few other types of business entities including S Corps and Limited Partnerships...but I'm just trying to provide a brief overview. Check out http//sbinformation.about.com/od/ownership1/ or any business ownership text for more information ) The IRS website should also have information on the tax implications for each business entity[/quote9a711b6ac1]

I believe your only double taxed on profits that you choose to not put back in to the corp. I think with a corporation there are ways to get good tax breaks, but hell if I know. Just remember, if your business is legal you can write off many things you use. (Think computer, tech allowances, car allowances)

[quotecdfb93aeb8="ajasax"]If you own an LLC don't you eventually have to convert to a sole proprietorship or partnership? I thought LLCs were just to help small businesses grow enough to become a full-fledged corporation shrug.[/quotecdfb93aeb8]

No, they do no such converting. As FON quoted, for tax purposes they are considered a sole proprietorship.
I've ran an LLC and a sole proprietorship (differnent 'companies' tho) and if you are unsure of what to do, just do the SP. Obviously consult someone about this decision first, someone being a lawyer would be best (or at least that knows your exact situation). For the freebie site, you'll be fine as a SP. However if it grows fairly large you might want to take another look at an LLC or an S-corp. Both have advantages that you should look into.

I have heard about LLC not being as secure as everyone makes them out to be. Aka, weaking your person assets, not only business. I think they were just talking about suing your company as one lawsuit, but also sue you as well.

As far as the freebie site, you should be fine and have little to worry about. Best of luck with it.