Web Hosting Talk : Web Hosting Main Forums : Running a Web Hosting Business : Anyone here run their web hosting business as a corporation?

[SirJonathan]

Hey guys,

This is the first of many posts from me, hehe. I've found this place to be an incredible resource for helping me get started in web hosting. I've got a lot of great ideas for my business and look forward to sharing and contributing in anyway I can with the community.

I've decided to setup my business as a corporation. I'm going to be hiring someone to run the dedicated server.

I'm already very familiar with entities and their structures; the way they provide liabiality and tax protection. What I'm lacking is real-world experience.

Does anyone here use a corporation as their entity structure?

If so, what was the biggest reason for choosing that structure?

I have more question, first wanna see if there is anyone !

Glad to be here and thanks in advance for the help!

-Jonathan

[dandanfirema]

We run our hosting company as a corporation. I felt it was necessary both for liability protection as well as maintaining a truely separate financial entity for tax purposes.

[SirJonathan]

Did you go for an S election or remain a C corp?

[dandanfirema]

We remained a C corp to prevent changing the tax rate on other income already earned by me personally.

[SirJonathan]

Understood, remaining a C corporation is probably what we'll do as well. Do you have any employees that you've hired in your corporation?

What I'm going through right now is trying to figure out the relationship I will have in the business as the owner and also the relationship an employee would have. I have a lot of ideas, but again, very little real world experience.

-Jonathan

[dandanfirema]

Yes I do have employees. Please IM me directly to continue this conversation. PM me with your IM of choice and I will give you my address.

[thinkcomp]

Jonathan,

We're set up as an S corporation. Though you can certainly run a company as a C corporation, unless it's quite large, there's really no need. Subchapter S corporations are taxed at the individual level, meaning that the company's taxes are appended to the owner's personal return. This makes taxation slightly easier from an accounting point of view, which means it can save you some money in the short-term at least. It's also easier to convert from S to C than vice-versa, should you do well.

[pmabraham]

Greetings:

Our parent corporation -- Dynamic Net, Inc. -- is a Pennsylvania C corporation.

Thank you.

[Nilomedia]

What's the difference between having a .Inc and a .Ltd?

[patriotcow]

I have LTD

[universal2001]

i think LTD, Limited is a term used for UK / Australian companies,
whereas the US tend to use Incorporated, Inc, Corporation.

[NikeAero1080]

LTD is a Limited Liability Company. You can abbrieviate them by using LLC, LTD, INC, CO, and so on.

[Nilomedia]

Thanks guys!

[JayC]

Originally posted by NikeAero1080
LTD is a Limited Liability Company. You can abbrieviate them by using LLC, LTD, INC, CO, and so on.

Nope. In the US you can only abbreviate "Limited Liability Company" as "LLC."

"CO" for "company" is not reserved; it doesn't imply as the others do that the business is a registered business entity.

Only a corporation can use Limited, Corporation, Incorporated, or the abbreviated forms of those words.

[dollar]

To those of you who are operating under an S Corp form, why did you choose to do so rather than a LLC (to my knowledge there is very little difference between the two.)

To those of you who are operating under a C Corp form, why did you choose to do so rather than a S Corp? Isn't the taxation much higher for you unless you are doing major income each year?