Hello, Im going to purchase a reseller account though someone told me you needed a Lawyer and Accountant and theres is alot of legal stuff involved is this the case? I am only 16 and would be abit difficult getting a lawyer etc. Hope you can help. Thanks!

Having one is not required, but is highly recommended. Keep in mind if you're under 18 you'll need to talk to an accountant and your parents about registering as a corporation (assuming you make enough to need it). Obviously if you're only making 2000/yr you don't exactly NEED to register as a corporation.

It's all about watching your own butt when it comes with legalities of web hosting.

Hope this helps.

Originally posted by RefreshNet
Having one is not required, but is highly recommended. Keep in mind if you're under 18 you'll need to talk to an accountant and your parents about registering as a corporation (assuming you make enough to need it). Obviously if you're only making 2000/yr you don't exactly NEED to register as a corporation.

It's all about watching your own butt when it comes with legalities of web hosting.

Hope this helps.

90% of the companies here are from people under 18 and most don't even have insurances. I think there less then 1-2% here that have it.

Originally posted by PulpFiction
Hello, Im going to purchase a reseller account though someone told me you needed a Lawyer and Accountant and theres is alot of legal stuff involved is this the case? I am only 16 and would be abit difficult getting a lawyer etc. Hope you can help. Thanks!

Here what I would do.

First talk to your parents, as they would be the ones who would be responsible if something should go wrong. Also stay away from companies that are overselling ( You should be able to tell by there packages and a few back ground checks ) because as you having no insurance your parents would get pi**ed if they got sued.

You don’t need to be corporation. Yes it’s more required if you’re a bigger firm as the liability is much bigger, but smaller guys don’t needed.

A few more things to remember is don’t do adult hosting, as that’s where most or any lawsuits will come from. If you don’t believe me go to an insurance company and ask them about regular hosting insurance, then tell them you want to do adult hosting… watch how much more you will pay.

Well I wish you the best and good luck.

Although if you were sued, as far as I know, if you register an LLC, you have less liability

Greetings:

If you are going to be professional, and run your business like a business, then you should see a lawyer and an accountant.

Thank you.

http://www.webhostingtalk.com/showthread.php?s=&threadid=304009

It would be wise to get an lawyer and a professional TOS/AUP done up for your company. Accountant is not really needed unless you are really bad at managing money!

You can find legally backed (at least in most US states) AUP and TOS with some upstream providers like DIY, but I would suggest at least talking with an accountant. It's not the managing the money part that can kill you if you are fairly good at that. It's the tax issues/implications depending on your structure, revenue, etc. I now know more about tax code that I ever wanted to, and that's really not the best use of my time. Lesson learned...

David

PulpFiction,

Sixteen. Very immpressive. Go for it.

I can only write from my experience in Colorado, USA, and as you
know, laws, rules and resources vary a lot from area to area.

Being under 18 is definitely another matter - when it comes to entering into contracts and being CEO of your company when you reach that point.

Just as you will help people, and save them time, money, and headache when it comes to web sites - a good lawyer or accountant will do the same for you. But, you can do a bit of research and then use them as needed.

Most importantly, make sure they have experience in your business area. You do not want to get burned, or pay them for their time while you are educating them. Directories/yellow pages, referrals can help you determine their experience. Most offer free initial consultation, so go with the one you think best for you. (Competence is not the same as liking their personality
or price.)

S.C.O.R.E., as mentioned by Dan X, is a great resource. Colorado's
web site for the Secretary of State is also an awesome resource, so your areas' similar office should be great as well. Your high school, libraries, local colleges/law schools, bar (lawyer) associations and banks would be helpful as well.

Yes, you will want to cover yourself regarding the laws (local, state and national), rules that govern you and your business, insurance needed, and liability.

But, the biggest and first thing will, at least in the USA, and in my humble opinion, be incorporating the right way for income tax reasons- savings - and for what happens when you become an adult and you are still in business. Once you pass a certain income threshold, and it's not very high, you have to file the income tax reports.

What you want to be careful of is that sole-proprietorships
have to pay income tax and social security tax on all of their income. If you become a corporation, then your corporation can pay you a salary and you only have to pay income tax and social security on that salary - not all the income the entitiy makes.

The reason it has to be done right from the get go is that it is very difficult to change if it is done wrong. If you start as a sole-proprietorship and need to change to a corporation, your corporation would have to buy your sole-proprietorship. There
is probably a similar concern in transferring things when you become an adult. PulpFictionWeb.com will be a big brand by then?:=0

Final thoughts. If you do have to incorporate, you can do it yourself, or use a service that does that. You do not have to have an attorney do that. So you can save money. Likewise for using an "enrolled agent", or bookkeeping service, or quicken for the tax stuff - once you get set up. If you plan on running more than one of your own sites, you may want to see about making each one a seperate legal entity.

Hope that helps.

Thank you.

Another Dan

Originally posted by Dan Sternberg
S.C.O.R.E., as mentioned by Dan X, is a great resource.

Yes, I agree and forgot to mention in my post. They can be a lot of help to get you started, especially since it's FREE!

Originally posted by Dan Sternberg
What you want to be careful of is that sole-proprietorships
have to pay income tax and social security tax on all of their income. If you become a corporation, then your corporation can pay you a salary and you only have to pay income tax and social security on that salary - not all the income the entitiy makes.

The reason it has to be done right from the get go is that it is very difficult to change if it is done wrong. If you start as a sole-proprietorship and need to change to a corporation, your corporation would have to buy your sole-proprietorship. There
is probably a similar concern in transferring things when you become an adult. PulpFictionWeb.com will be a big brand by then?:=0

Final thoughts. If you do have to incorporate, you can do it yourself, or use a service that does that. You do not have to have an attorney do that. So you can save money. Likewise for using an "enrolled agent", or bookkeeping service, or quicken for the tax stuff - once you get set up. If you plan on running more than one of your own sites, you may want to see about making each one a seperate legal entity.

As Dan points out as well, this can be a huge headache if you don't know a good deal about tax laws. A good reason to invest a small amount in a CPA. I tend to differ on going the Corp. route though. At 16 (well, it's been about 20 years but I think I remember what that was like :) ) there are bound to be many shifts in priorities over the next few years, just a guess. Incorporating is a fairly large step especially for someone in PulpFiction's situation (whether you're talking S or C). Granted you don't have to have an attorney do it for thousands of $, but it's still a large commitment in terms of managing, tax filings on behalf of the corp., conducting "on paper" yearly meetings, etc. However, if you feel this is the way to go for you to start out, a CPA or tax advisor would be able to help you out with that sort of thing. Good luck to you!

David