This has probably been posted again but there is one thing I am unclear about.

Is it legal/acceptable to run a business that is not officially registered in any way? I agree when you are bigger it is obvious you should be LLC,INC,Corp,LTD etc or the like.


For some of the new hosts out there this might help them - are there legal limits on your income that you need to say right its time to become inc/llc/ official business?

Thanks guys for clearing this up.

You do not ever need to incorporate ever if you do not want to. As a small host you really dont need to, but as you begin to pull down some money and start having volume in customers, you should start thinking about it.

Why incorporate?

PROTECTION of ASSETS!!!!

If you are a sole propriator, and your server goes down and they lose their business, they could ATTEMPT to sue you for damages (really depends on you terms, but they could try). If they win, not only will your business pay your personal assets will be fair game as well such as your house, car savings etc...

If you are a corporation in the same situation, all they will be able to sue for is maxed out at the value of your business, not personal assets etc.

Yeah I see now,

Cheers :)

If you have a lot of personal assets, it makes sense to incorporate. Otherwise, why bother? You are judgement-proof anyway!!