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  1. #1
    Join Date
    May 2004
    Location
    Australia
    Posts
    39

    Small Webhosting Business

    i was just wondering if any1 could tell me wat leagle documents i need to start a small hosting company. i already have TOC's but i just want to make sure i have all thing covered b4 i start.

  2. #2
    Join Date
    Aug 2003
    Location
    Pittsburgh
    Posts
    3,479
    If you browse this forum or even perform a Search, this question has been covered before. Welcome to WHT

  3. #3
    Join Date
    Mar 2004
    Posts
    1,301
    Welcome to WHT

    1) Copywrite your content
    2) TOS
    3) SLA (Service Level Agreement)
    4) LLC or Inc, depends on which one you want to choose if you want to
    "Web Hosting is not just about selling space, it is about facilitating customers needs with your plans and supporting the customer for a long lasting mutually beneficial relationship."- Yaser

  4. #4
    Join Date
    May 2004
    Location
    Australia
    Posts
    39
    Originally posted by Yaser

    3) SLA (Service Level Agreement)
    4) LLC or Inc, depends on which one you want to choose if you want to [/B]
    wat are LLC or Inc???

  5. #5
    Join Date
    Mar 2004
    Posts
    1,301
    LLC is a form of protecting yourself by establishing or forming a Limited Liability Company, once your are a LLC then you are only liable for the money you invested in the business and not your personal assets such as car, house.

    and Inc is the process of becoming a corporation by following the procedures described by law.
    "Web Hosting is not just about selling space, it is about facilitating customers needs with your plans and supporting the customer for a long lasting mutually beneficial relationship."- Yaser

  6. #6
    Join Date
    May 2004
    Location
    Australia
    Posts
    39
    so which would be better in the long run??

  7. #7
    Join Date
    Mar 2004
    Posts
    1,301
    The concept of a limited liability company was to protect the owner from personal liability and designed to encourage more entrepreneurs to start businesses. A corporation may or may not shield you from personal liability and loss of assets.

    The cost of incorporation varies greatly from state to state. Nevada and Delaware are the cheapest with the fewest set of rules, this is why several large companies (most notably credit card companies) incorporate in these states. In Nevada, its less then $500, assuming you have an office set up there or are willing to set one up.

    Check out the SBA's site and they have huge amounts of info on the differences in LLC and INC as well as other forms of legal business structures. www.sba.gov
    "Web Hosting is not just about selling space, it is about facilitating customers needs with your plans and supporting the customer for a long lasting mutually beneficial relationship."- Yaser

  8. #8
    Join Date
    May 2004
    Location
    Australia
    Posts
    39
    just a note i am in australia so us is usless to me!

  9. #9
    Join Date
    May 2004
    Location
    Cyberspace
    Posts
    13

    Just a side note.

    Greetings All,
    Just a little side note to LLC and Incorporating. More than the agony of keeping minutes, etc etc. You HAVE to have a "board" (corporate officers), and, if they are unhappy with you, they can vote you out of the company, even if you started it. Which I have seen happen, and totally sucks (large corps, not small incs, but a corporation is a corporation, and it can happen to the best of us). Start off as an LLC and limit your liabilities, if you grow so much that you need to incorporate, then you can afford the legal team, so it won't be a problem.

    CyberSpy
    President
    SpyTech Industries

  10. #10
    Join Date
    Mar 2004
    Posts
    1,301
    Even though you are in Australia you might want to form an LLC to keep you liable only for your business assets/investments.
    "Web Hosting is not just about selling space, it is about facilitating customers needs with your plans and supporting the customer for a long lasting mutually beneficial relationship."- Yaser

  11. #11
    Join Date
    May 2004
    Location
    Australia
    Posts
    39
    ok i will look into getting a LLC

  12. #12
    Join Date
    Apr 2004
    Location
    Houston
    Posts
    500

    Re: Just a side note.

    Originally posted by CyberSpy
    Greetings All,
    Just a little side note to LLC and Incorporating. More than the agony of keeping minutes, etc etc. You HAVE to have a "board" (corporate officers), and, if they are unhappy with you, they can vote you out of the company, even if you started it. Which I have seen happen, and totally sucks (large corps, not small incs, but a corporation is a corporation, and it can happen to the best of us). Start off as an LLC and limit your liabilities, if you grow so much that you need to incorporate, then you can afford the legal team, so it won't be a problem.

    CyberSpy
    President
    SpyTech Industries
    That board of directors you mentioned can all be yourself. You can act as President, Secretary, and Treasurer.

  13. #13
    ^^ yup! I'm a "Sole Member LLC"

  14. #14
    Join Date
    Feb 2003
    Location
    Connecticut
    Posts
    5,441
    Is a Sole Member LLC a legal entity? Last time I checked, you NEED two members to an LLC, or else your only option is a Sole Proprietorship.

  15. #15
    nope, that was years ago. Washington D.C. and all fifty states except Massachusetts require only a single member. Massachusetts requires two
    http://www.7blade.com
    Web hosting based in Norwich, CT.
    Dedicated to Customer Satisfaction.

  16. #16
    I think some courts have ruled single-employee incorporations (maybe LLCs too) don't shield the owner from liability.

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