Legalities with website start-ups

Well, after much thought, discussion with friends and colleagues, and contact with Tom(aptohosting); I feel I am getting closer to starting my first web site. With the help of Tom and his team, I hope to have something running by the end of the year.

However, my website may not exactly be "fastlane" starting off. In fact, I won't be selling anything, my closest hope for revenue in the near future(1-2 years) would be through advertising. To be honest, my primary reason for this possible venture would not be for the money. Yes, I would hope it could bring me SOME AMOUNT of passive income eventually, but I have a passion for a lifestyle that desperately needs an online community that hasn't been developed yet.

With that said, knowing I'm not jumping into selling anything or making any revenue, what legal concerns should I take into consideration while trying to start up? Should I incorporate now? I have a domain name that is brandable, should I copyright? Am I being paranoid and should I just focus on the site? What should I be thinking of? I will try to talk to my lawyer also, but I know the members on here have much more experience with the legal necessities of web pages than he does. Thanks!

I think it couldn't hurt you to have an LLC under which to do all business. You don't have to name it after the site. Just something general. You won't be collecting taxable income this year, but you might want the LLC to account for taxable losses.

That said, I think you are safe to begin development and promotion. I have said before, and I will say again: no one cares about your idea as much as you do. Even thieves, pirates, and hooligans are no match for your passion. What do I mean? Even if someone steals your idea and becomes a competitor or terrorist, they will tire before you. Patents, copyrights, and trademarks are GREAT, if you have the time and money to prosecute them. My philosophy is to BUILD hard and fast. Defend later.

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Incorporation (Tax benefits, asset protection, liability protection) is one of the first steps to a Fastlane ... regardless if you make any money or not.

That makes sense.

I would just say that you do not need to wait for the wind to be just right to begin your journey. Set you course, GO, and make small corrections. I call it "Ready, Fire, Aim; Fire, Fire, Fire!!!"

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I would have to agree. Open an LLC and fire away. That should take care of your essentials in the beginning.

None of the steps you mentioned will stop someone from "executing" faster than you, and that is your best weapon IMO.

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Thanks for the replies everyone! Forming an LLC has definitely been at the top of my mind, I was just curious as to when the best time to do it is. It will be a priority for me with starting the website.

As far as forming one, are the websites out there reputable, or is it best to visit an LLC Office or lawyer to get set up?

I used the Company Corporation. It costs more money than doing all the legwork, but my time was well-saved.

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As far as a registered agent, is it worth it for me to pay annually to have one as a third party, or should I take the responsibility right now? Will paying to have one free up that much time and annoying tasks for me?

Are you referring to Statutory Agent? If so, you can be the agent as the owner, at least here in AZ.

Yes, same as a Statutory Agent. I noticed it must be popular practice to pay to have your Registered/Statutory Agent signed up as a third party. Is this simply just paying a couple hundred bucks a year to not receive junk mail? Or are there a lot of annoying, tedious tasks that are filtered out by doing this also?

I can't remember doing anything ... the purpose is to accept official docs ... like a lawsuit, or serve.

Ok, that's what I was hoping. I don't mind some occasional junk mail; it makes me feel important.

You should incorporate your business in Delaware, as it offers a lot of great benefits. Did you know that 60% of Fortune 500 companies incorporate in Delaware to save money and gain tax benefits?

If you are looking at more of a non-profit business model for your website, you my want to go with a 5013c instead of an LLC. (Contrary to popular belief, non-profits can make money too.) You may want to talk to your accountant in more depth before choosing a business entity.

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incorporate...or form a LLC. then just make the site, and work hard at getting it going and indexed, the rest you will work out once you are on the highway. all the info on your site is copywritten when you right it. copyscape.com can help a bit to see if anyone is biting on your material but more important just get the site going. That will motivate you one step at a time.