What is a recommended legal structure for a small web hosting company? By what I have read at my local state's website, I think an LLC sounds the most appropriate. Any comments for or against this?

I assume that I am understanding everything correctly, someone slap me if this sounds wrong:

I need to file a Articles of Organization
I need to file a Trade Name Registration (DBA) with local state
I need to file for a Employer Identification Number with the IRS

And that's pretty much it.

As for taxes are concerned don't I just file it along with personal taxes as if it was just a partnership?

Are there any other things I need to do? Both to startup or while I'm running? Obviously I would want to keep records of all incoming and outgoing transactions. Anything else?

Thanks,

Neofree

That's it. LLC is better and you can also report your business income on personal filing until you reach a certain extent (an accountant will give you a better idea about that). I belive if you have a "c" or "s" corporation, you can report business income on personal.

Does anyone know what us brits can do to become registered?

I know of Plc and Ltd but you have to sell shares in these. Is there any UK equivalent of LLC?

I'd ask my business prof, but don't go back to uni till monday :D

Ltd. is equivalent to LLC

Ltd. = Limited
LLC = Limited Liability Company

but with LLC, you don't have to sell shares of your company.

with Ltd you do.

Actually, I was just reading up one of my law books just now and it states that it is normal practice for a small company to invest £1000 in shares in order to form an Ltd.

Do you have to do this with an LLC?

With an LLC you don't have to do that. Our company is an LLC.

:( why does the US have to get everything :(

apart from cheap ps2's that is :D

I read that in most states to form an LLC you need to have two or more people. Can anyone tell me which states allow for a one person LLC?

Thanks.

Originally posted by RoseHosting
Ltd. is equivalent to LLC

Ltd. = Limited
LLC = Limited Liability Company Incorrect -- Ltd. is more equivalent to the US corporation. Both a corporation and an LLC offer the same limited liability. In fact, in most states in the US you could choose the identifier "Limited" as part of your corporation name instead of "Incorporated" or "Corporation."

The LLC concept was developed as a way for small businesses to organize without the formality and complex recordkeeping (required shareholder meetings, etc.) but with the same liability protection.

Hehe what about

if the 2 parters are set like this

1 is in the us
1 is in canada ?

anyone know if you can still go llc in us with a parter in canada ?

yes you can I do have a partner in canada and i talked to the irs law dep and they said i can have one. as long as the business acts as a flow thure for the cash i send him his shaire and he payes taxes on his end

Originally posted by Locutus
Actually, I was just reading up one of my law books just now and it states that it is normal practice for a small company to invest £1000 in shares in order to form an Ltd.

Do you have to do this with an LLC?

Not necessarily - if forming a private limited company, the partners have to buy equal amounts of shares - but afaik, you can agree on the amount bought.

Regards
Matt