Hi there,
I was just wondering what the most common business form is used for the smaller webhosts here. By this I mean, sole proprietor, PTY LTD, partnership etc...

I was going to start out as a sole proprietor, however, I now have the opportunity to join a company....so I guess that will be better given limited liability etc...

What do you mean by "join a company"? Are you going in as a partner with someone? Or is it something else? Either way, you are going to want to do some homework here. I'm not familiar with the rules down under, but basically you'll want to have everything down in writting. In the States, you can have what is called an LLP or LLC, but I don't believe they have the same shield as say a full blown Corporation. (I could be wrong)

Your best interest would be to find a local attorney, and swing it past him/her. The fact that it is a hosting company you are starting doesn't make any difference.

You also need to consider what your main interest is. If you are worried about being sued for liablity, you may swing one way. But if you are more concerned about tax status vs liability, you may swing to another form. Overall, an attorney is best to be consulted on for such an important issue.

sPoT!

If you "join" into an existing company, absolutely get everything in writing! If they won't write it down, run don't walk to the exit!

If you go it alone, probably a sole prop is the most quickest, easiest and more cost effective way to get started. Later you can incorporate or LLC depending on your needs.

Either form you go with, it would probably be wise to consult your insurance agent, and see what kind of liability insurance you can get, and what is would cost ya. It was posted in a thread I read earlier, that not even a full corporation can always sheild you from liability suites... which is a good point to consider.

sPoT!

Spot,

I doubt you can get professional liability insurance for a host or web deisgner. And even if you find a company that will write such a policy the cost will be mile high!

IntraHost is an S Corp. We are the same kind of company as any of the big boys, IBM, Yahoo!, AOLTW, they are usually all S Corps. (i think so at least)

Originally posted by IntraHost
IntraHost is an S Corp. We are the same kind of company as any of the big boys, IBM, Yahoo!, AOLTW, they are usually all S Corps. (i think so at least)

hehe, I would very much doubt IBM or Yahoo would be a S Corp .. S Corp are great for smaller business, mostly to avoid double taxation on your income :)

Originally posted by IntraHost
IntraHost is an S Corp. We are the same kind of company as any of the big boys, IBM, Yahoo!, AOLTW, they are usually all S Corps. (i think so at least)

That is unlikely since an S corp can only have ~80 shareholders.

ok ok so i lied...

hm.... i read up on this... oh oh, inc.com has some good articles on business types.... i'll go find it, hehe.

edit: here's that inc.com article... well not the exact one, but it will help ya! http://www2.inc.com/search/18712.html

and yes yes, I was wrong on the s thingy, but hey! it was a letter! :)