
Ask HN: Legal issues in side project / business - billconan
I&#x27;m interested in creating my own side project &#x2F; business. But I&#x27;m wondering how to handle potential legal issues?<p>For example, if my saas server goes down and impacts some customers and get myself sued...<p>for small teams, it seems to be difficult to fight these issues?<p>Do you own a side business? Are you concerned about this?
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PhilWright
Do not run the side project in your own name but instead create a limited
liability company and use that for your projects. Then your liability is
limited to the money you put into the company. Otherwise you are operating
under your own name and so all your own assets are at risk if you are sued.

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billconan
This is a good advice! I did not know this. Thank you.

when you say limited liability company, does it mean only LLC? or C-corp and
S-corp are also good?

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brudgers
[I am not a lawyer]

The primary reason to form a C-corp is to facilitate outside investment by a
particular class of outside investors. That class of investors includes
traditional venture capital. There are few situations where forming a C-corp
would provide advantages over an LLC: both are closely held, but an LLC is
more flexible in terms of structuring controlling interests and payouts.
That's why they are more popular.

My advice is to pay an attorney familiar with SAAS businesses for advice.

Good luck.

