Business ownership information for those interested. - GoFuckYourself.com

entrprnr · 06-27-2002, 03:37 PM

WARNING: this is a pretty long-winded post.

This in reference to a post provided by Kross, but instead of replying in his thread, I thought it might be helpful for others to see it in general.

Quote:

Originally posted by Kross

Hey all, I have a quick question and im sure all of you could answer it. Acouple of people I know want to make an adult site. There will be a total amount of 4 people. Im not sure what legal stuff they would have to do? Partnership ? Anyplace online that they could do it? Thanks

Ok, heres a fairly knowledgable breakdown of how you might want to go with your business...

Sole Proprietership
# of owners:
1
How to Form:
Just do it.
Level of Personal Liability:
Unlimited
Tax Consequences:
Owner Pays
Ability to transfer ownership:
totally transferrable

Partnership
# of owners:
2 or more
How to Form:
verbal or written agreement
Level of Personal Liability:
unlimited for general partners, limited partners can lose up to the amount they've invested
Tax Consequences:
individual partners must pay
Ability to transfer ownership:
may need consent of other partners

"C" Corporation
# of owners:
unlimited
How to Form:
follow rules set by state law
Level of Personal Liability:
only the amount you've invested
Tax Consequences:
corporation pays on earnings; shareholders pay on dividends
Ability to transfer ownership:
totally transferable

"S" Corporation
# of owners:
up to 35, must be U.S. citizens or residents
How to Form:
follow rules set by state laws and the IRS
Level of Personal Liability:
Only the amount you've invested
Tax Consequences:
individual shareholders pay
Ability to transfer ownership:
May be limited in order to preserve "S" status

Limited Liability Corporation (LLC)
# of owners:
2 or more
How to Form:
follow rules set by state law
Level of Personal Liability:
only the amount you've invested
Tax Consequences:
individual owners pay
Ability to transfer ownership:
generally need consent of all owners

Generally, the Sole proprietership is ALWAYS the best way to go; YOU have control of your business and YOU decide which way it goes. However, if you need additional people to get started, usually the best way to go is a Partnership.
Both are easy to set up--You don't have to file any special forms or pay any fees to start. Additionally, there are'nt any special rules governing your operation.

I won't even go into corporations, the odds of anyone going public with an adult site are pretty slim. Besides, issuing stock options and going public are both very confusing and time and money intensive, most webmasters are filled to the brim with responsibility and cannot afford this investment. For those that are interested, however, you can refer to the link below for more info.

THE best way to go if you are afraid of risk and are using invested dollars, is a Limited Liability Corporation (LLC).
You can have Limited Liability Partnerships, as well, and this is probably the smartest way to go. LLC's are great, because you get the same protection that a corporation gets (as far as owner liability is concerned) but the simplicity and flexibility offer a helluva advantage over corps.

You can refer to www.nolo.com for more information. If you have any questions, you can contact me.
ICQ: 163385497

Thanks for listening.

Also: Please keep some sort of thread going for awhile on this post....I think this is probably pretty useful for some people.

XXXPaysiteDesign · 06-27-2002, 05:48 PM

I think most all of us know the basics of business..

Brown Bear · 06-27-2002, 05:52 PM

this is a business now?

pornJester · 06-27-2002, 06:14 PM

Quote:

Originally posted by XXXPaysiteDesign
I think most all of us know the basics of business..

Give the guy a break, he's just trying to help...

XXXPaysiteDesign · 06-27-2002, 06:17 PM

I wasn't trying to be negative, he posted that nobody was responding to his thread on another topic and I feel the reason is because there's no need to.

cold_ice · 06-27-2002, 06:22 PM

hey dude props to you for trying to help

entrprnr · 06-27-2002, 06:27 PM

Originally, i was trying to reply to a thread started by Kross about business ownership, and it ended up being pretty long, and i thought it would be a useful resource, so i made it a newpost instead.
sorry for the bullshit, i was just trying to help those who might be interested or did'nt know.

Just forget the whole thing.

CC · 06-27-2002, 09:07 PM

Great post, entrprnr. However, from my own experience, being a sub s corporation (rather than a partnership) has saved me a lot of money on tax breaks. My business consists of just 2 people (both of us being the only shareholders), including myself. My best advice to people just starting out is to educate yourself and talk to an accountant (and a lawyer). Hopefully, they will guide you in the appropriate direction for your needs.

Cassie

FierceHost · 06-27-2002, 09:20 PM

nice post, I think its gonna teach alot of people some stuff they didn't learn in business and ecanomics in school ;) they was too busy thinking about looking at porno when they get home instead of listening

Kross · 06-27-2002, 09:34 PM

Thank you so much... It was very helpful... Don't listen to anyone who is doggin you... They are just jealous of you Hah...

Anyone know of any good billing processors besides
ccbill, paycom
they want like 20 %
anyone?

mike503 · 06-27-2002, 11:26 PM

yeah, good post.

Amputate Your Head · 06-27-2002, 11:31 PM

Quote:

Originally posted by Kross
Don't listen to anyone who is doggin you... They are just jealous of you Hah...

yeah that's it..... we're jealous.

Dax · 06-27-2002, 11:40 PM

Quote:

Originally posted by Kross
Thank you so much... It was very helpful... Don't listen to anyone who is doggin you... They are just jealous of you Hah...

Anyone know of any good billing processors besides
ccbill, paycom
they want like 20 %
anyone?

Yeah, jesusbilling.com charges 2.9%

playa · 06-27-2002, 11:43 PM

if your in this business you should always protect yourself,,

if your making some serious paper you should seperate your entity and maintaining a sole propriertorship is too dangerous,,

BTW,, one person can form an LLC,,, and you can do it yourself without paying someone,,,,

ReFresh · 08-05-2002, 07:16 AM

Quote:

Originally posted by playa
if your in this business you should always protect yourself,,

if your making some serious paper you should seperate your entity and maintaining a sole propriertorship is too dangerous,,

BTW,, one person can form an LLC,,, and you can do it yourself without paying someone,,,,

Can you elaborate on this a little? It's a good thread. A lot of us need help, and don't really want to do any more "learning by trial and error" than necessary.

Thanks,
ReFresh

ReFresh · 08-05-2002, 07:18 AM

Quote:

Originally posted by Dax
Yeah, jesusbilling.com charges 2.9%

I tried checking them out and got a 404. Are they already gone? Or, did I screw up somehow, or are they the same as jesuscash.com?

Thanks,
ReFresh

hybrid · 08-05-2002, 07:23 AM

Unfortunately, entrprnr was horribly disfigured in a freak accident involving a pair of pliers, a cucumber and a wedding gown.

We tried to save him, but unfortunately we could'nt get the chicken head from the Shaman in time to do anything useful.

Sorry.

06-27-2002, 05:48 PM	#2
XXXPaysiteDesign Confirmed User Join Date: Mar 2002 Location: Everett, WA Posts: 2,201	I think most all of us know the basics of business.. __________________ SIG TOO BIG! Maximum 120x60 button and no more than 3 text lines of DEFAULT SIZE and COLOR. Unless your sig is for a GFY top banner sponsor, then you may use a 624x80 instead of a 120x60.

06-27-2002, 05:52 PM	#3
Brown Bear Confirmed User Join Date: May 2002 Posts: 4,982	this is a business now? __________________ Surrender all your independent thinking and Click Here for re-programming.

06-27-2002, 06:17 PM	#5
XXXPaysiteDesign Confirmed User Join Date: Mar 2002 Location: Everett, WA Posts: 2,201	I wasn't trying to be negative, he posted that nobody was responding to his thread on another topic and I feel the reason is because there's no need to. __________________ SIG TOO BIG! Maximum 120x60 button and no more than 3 text lines of DEFAULT SIZE and COLOR. Unless your sig is for a GFY top banner sponsor, then you may use a 624x80 instead of a 120x60.

06-27-2002, 09:07 PM	#8
CC Confirmed User Join Date: Feb 2001 Posts: 1,690	Great post, entrprnr. However, from my own experience, being a sub s corporation (rather than a partnership) has saved me a lot of money on tax breaks. My business consists of just 2 people (both of us being the only shareholders), including myself. My best advice to people just starting out is to educate yourself and talk to an accountant (and a lawyer). Hopefully, they will guide you in the appropriate direction for your needs. Cassie Last edited by CC; 06-27-2002 at 09:08 PM..

06-27-2002, 09:20 PM	#9
FierceHost Confirmed User Join Date: Apr 2002 Location: Indiana Posts: 424	nice post, I think its gonna teach alot of people some stuff they didn't learn in business and ecanomics in school ;) they was too busy thinking about looking at porno when they get home instead of listening __________________ 250$ 1000GB / Mo - 2000mb space - 10 domains - .26 per gig overage <font color="#00FF00">ICQ 132871574</font>

06-27-2002, 06:22 PM	#6
cold_ice Confirmed User Join Date: Jun 2002 Location: cali Posts: 3,027	hey dude props to you for trying to help

06-27-2002, 06:27 PM	#7
entrprnr So Fucking Banned Join Date: Jun 2002 Posts: 45	Originally, i was trying to reply to a thread started by Kross about business ownership, and it ended up being pretty long, and i thought it would be a useful resource, so i made it a newpost instead. sorry for the bullshit, i was just trying to help those who might be interested or did'nt know. Just forget the whole thing.

06-27-2002, 09:34 PM	#10
Kross Registered User Join Date: Jun 2002 Posts: 4	Thank you so much... It was very helpful... Don't listen to anyone who is doggin you... They are just jealous of you Hah... Anyone know of any good billing processors besides ccbill, paycom they want like 20 % anyone?

06-27-2002, 11:26 PM	#11
mike503 Confirmed User Industry Role: Join Date: May 2002 Location: oregon. Posts: 2,243	yeah, good post. __________________ php/mysql guru. hosting, coding, all that jazz.

06-27-2002, 11:43 PM	#14
playa Confirmed User Join Date: Feb 2001 Location: atlanta, GA Posts: 6,432	if your in this business you should always protect yourself,, if your making some serious paper you should seperate your entity and maintaining a sole propriertorship is too dangerous,, BTW,, one person can form an LLC,,, and you can do it yourself without paying someone,,,,

08-05-2002, 07:23 AM	#17
hybrid So Fucking Banned Join Date: Jul 2002 Location: Backseat of a Ford Escort Hatchback Posts: 3,253	Unfortunately, entrprnr was horribly disfigured in a freak accident involving a pair of pliers, a cucumber and a wedding gown. We tried to save him, but unfortunately we could'nt get the chicken head from the Shaman in time to do anything useful. Sorry.