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In retrospect, any limitation on potential liability would be nice. But I didn't originally set out to make Voo2do into a business -- the only way I get money for it at present is through donations. Are you saying anyone who wants to build and offer a web application should form an umbrella corporation for that? What about non-web software? Where do you draw the line between "personal experimental project" and "entity that needs a state-sanctioned organization around it"?

"Personal experimental project" is just that. Only you use it. Once you let an outside person use it you have distributed in the eyes of the law. You are open to suit and are no longer within safe harbors of personal use.

If you are making something for others to use, incorporate. It will cost you a few hundred dollars per year in filing fees, but that is just a type of insurance against times like this.

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