Welcome to the Small Business Ideas Forum! We are a community of over 100,000 small business folks with over 163,000 posts for you to browse. We pride ourselves on being the friendliest forum you will find and we'd love to have you as a member of our community. Please take a moment and register for a free account. If you need any help, please contact Chris Logan.

Small Business Ideas Forum

Small Business Ideas Forum

A friendly place to share small business ideas and knowledge, ask questions, find help and encourage others that are involved in the small business industry. Topics include small business marketing, generating revenue and small business computing.

Go Back   Small Business Ideas Forum > General Issues > General Small Business Issues
Register Search Today's Posts Mark Forums Read

Thread Tools
Old 23rd July 2008, 11:09 AM   #1

Join Date: Jul 2008
Posts: 2
Exclamation Online Service Questions

Hi, I am currently starting my first online service, and I have a few questions that research could not really help me solve

I am putting together a forum populating service for forum webmasters, and I am going to need "posters" (people that go and write on the forums) do I need to pay them benefits? do I need to make like contracts or agreements, etc? are there already made ones so I don't have to contact my lawyer? Do I have to register the company name? in other words, what are the requirements, so during the curse of the services life I will not encounter Major legal difficulties?

Help is greatly appreciated!

I thank you all in advance!

skullp is offline   Reply With Quote
Register or log in to remove this ad.
Old 23rd July 2008, 12:25 PM   #2
SmallMerchant's Avatar

Join Date: Feb 2008
Location: Connecticut
Posts: 66
Send a message via AIM to SmallMerchant

Seems like a good business idea. I would FIRST make sure it is a viable way to make money, then be sure you can market the company. Start small by contracting a single person (or doing it yourself). Only grow as needed.

Forming a company is pretty easy with all of the resources online. For tax purposes I wouldn't hire employees, I would hire contractors.

best of luck, let us know how your progress...


New URL Shortner: http://pip.ly
SmallMerchant is offline   Reply With Quote
Old 23rd July 2008, 04:28 PM   #3

Join Date: Jul 2008
Location: New York, New York
Posts: 20


Let me see if I can help you... As far as forming a company goes, you can either form an S-Corporation or LLC (Limited Liability Company) with your Secreteary of State or you can file a DBA (doing business as) with the Secretary of State so that you can work under your business name (and get a tax id and a bank account) as a sole proprietorship.

If you're at all worried about liability, I would suggest forming a company rather than working as a sole proprietorship. Here's why. When you work as a sole proprietorship and you get sued, they can attach all of your personal assets as well as the assets of the business.

In forming an S-Corporation or an LLC, you create a separate entity. It affords you a liability shield while allowing flow through payment and taxation (instead of with a C-Corporation where you pay taxes on the company money and then on your income). I generally suggest LLCs. They have all the benefits of an S-Corp, but are usually cheaper to form, but certainly you can pick either.

The thing you have to be careful of, particularly as a single shareholder S-Corp or as a single member LLC, is that you follow the formalities required to prove that the Corp or LLC is a separate entity. Here's how I usually explain it so that it makes sense. When you've formed an LLC or an S-Corp, your company is NOT you. It's an entirely separate entity.

Think about it like another person. Let's call the company Bob. Bob needs to have his own bank account, credit card, etc. You can't randomly take Bob's money out of his account without a legitimate reason (i.e., salary, reimbursement for money you've laid out on his behalf, etc.). If you want something that belongs to Bob, you need to contract with him for it. If you want Bob's employees to do something for a new company you're starting, you need to pay Bob for it. Get the idea? In order for a court to treat Bob like a person separate from you when someone sues Bob, you have to have been treating Bob like it's not you. LOTS of first time (and not so first time) business owners find out that they've lost their liability shield when it's too late. If you're going to bother creating a company to protect your personal assets, make sure you do it right.

Ok, so now that I'm off that high horse....

I agree with Nick that you should try not to have employees if you can get people to work as independent contractors. You should be able to find an IC agreement online somewhere. I'm not saying that they're any good. I'm just saying that you can find them. Try lect law....

That said, you may be able to get ppl to write for you for free. Offer ads for articles or some other enticement... Just a thought...

Hope that helps. Let me know if you have any other questions...

__________________________________________________ ____________

Any opinions are offered without knowledge of the specific law of your jurisdiction and with only the limited information provided in your post. No advice given here should be reasonably relied upon by you or any third party without consulting an attorney who is aware of all of the facts and law surrounding your situation. Any advice given here is not intended to create an attorney-client relationship in any way.

DeenaEsq is offline   Reply With Quote
Old 26th July 2008, 12:28 PM   #4

Join Date: Jul 2008
Posts: 2
Default Thanks so far

Thanks so far for all your help you guys have been really helpful!!!

do have to form a company even tho its a little service?

skullp is offline   Reply With Quote


Thread Tools

Get Updates
RSS Feeds:
RSS Feed for General Small Business Issues RSS for this Category Only: General Small Business Issues

RSS Feed for Small Business Ideas Forum RSS for Entire Forum
Forum Rules

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump

Small Business Ideas Forum

At Your Business - Small Business Directory
Free Business Forms - Prewritten Documents
Search Engine Guide
Small business guide to search marketing

Small Business Brief
Fetching the Best Small Business Info

Free Links - Free Advertising
Free Guide - Online Directory

Advertise your business here
Contact us for more details!

Semantic Juice
Register now to access free Quick SEO service!

Rocket Lawyer
Sign up for free 7 day trial. Boost your biz!

Buy UPC Codes
Get your products listed online!

All times are GMT -5. The time now is 09:13 AM.

Powered by vBulletin® Version 3.7.3
Copyright ©2000 - 2020, Jelsoft Enterprises Ltd.
Copyright 2004 - 2018 - Privacy