

Web Startup Legal Concerns - jhill888

I am constantly thinking of new ideas for a start-up to put out on the web, but it seems like my road-block is worrying about legal repercussions and liabilities.  Does anyone in the community have any advice?  How many web-startups form LLC types of business organizations to protect themselves?  Are there other ways?  I would greatly appreciate any advice the community might have here to help out a fellow comrade.
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skmurphy
Initially it depends on what other assets you have to protect. As you start to
make money the sole proprietor model is less favorable after taxes than a
Sub-S corporation. As you start to make a lot of money and may have found a
niche that would benefit from further investment converting the Sub-S to a C
(or regular) corporation gives you a vehicle to grow the business further.

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nostrademons
Go incorporate and don't worry about it. Even then, you usually don't need to
incorporate until you start getting traffic.

People generally don't sue folks with no money. What do they have to gain from
it?

