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Lucy, Esq.
Lucy, Esq., Attorney
Category: Business Law
Satisfied Customers: 19683
Experience:  Attorney
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i have a website(forum) with paid subscription service. the

Customer Question

i have a website(forum) with paid subscription service.
the business is booming with very good profit monthly

i was thinking about registering a Corp lnc. for my website.
right now the site is running under personal.

so just incase if there is any future debt/business problem or other legal issue(ie civil lawsuit),
having a Corp on the website would protect my own personal property?

i know how to register the business. but how do i connect it with the website to be legal bound and protected?

for my website (forum)

there is two places for ownership

1. domain registar(ie godaddy) - personal regstered
2. server, dedicated hosting - whats displayed on the site

so is it enough to just display the business name under every page of the site (#2)
without changing #1?
Submitted: 2 years ago.
Category: Business Law
Expert:  Lucy, Esq. replied 2 years ago.
Hi,

My name is Lucy and I'd be happy to answer your questions today.

If you want the legal protections of incorporating, the website needs to be owned by the corporation. It's important not to co-mingle your assets and to keep your accounts and property separate from the company's. Otherwise, you can get into trouble if someone sues you and claims that the corporation is just a sham to protect your assets, rather than a separate corporate entity. It's called "piercing the corporate veil" - and you don't want that to happen. So, see if there's a way to transfer the registration of the website to the corporation, and make sure that the corporation has separate, business accounts.
Customer: replied 2 years ago.

how do make sure the website is owned by the corp or business i registered.

do i have to change the domain registration?

 

 

the corp will have its own seperate busienss bank.

but does the paid subscription required to go through that bank acc? its going to a personal account atm that is not mine.

 

does this have any difference/effect on my personal proerpty with or without having such business plan setup?

Expert:  Lucy, Esq. replied 2 years ago.
It would be best if the website were also being paid for out of the business account, for a variety of reasons.

Once the incorporation is complete, you should be able to transfer the registration into the corporation's name, as long as the site is current and active.
http://support.godaddy.com/help/822?locale=en
Customer: replied 2 years ago.

great thanks for the info

 

yes i am planning to pay the website costs form the business account for the records.

 

but the most important thing is the subscription profit the site is making monthly.

its currently going through a personal bank in china for various safety reasons.

 

would it be ok to continue this business model for any future debt problem/bankruptcy

Customer: replied 2 years ago.

the reason im asking this is because

 

i don't want to spend all the time and effort making the corp and ended up with results like what you just mentioned - "corp veil".

 

so i want to take the proper steps first before anything happens.

 

im thinking about starting the business in china. where can i get professional advice on what i just stated. is it a lawyer or accoutant or agent.

Expert:  Lucy, Esq. replied 2 years ago.
I'm sorry, but I don't know have any experience with Chinese law. You would probably want to start with some sort of international business attorney.

To avoid being held liable for corporate debts, you have to treat the corporation as a separate legal entity. It can't just be an extension of yourself. Corporate profits need to be deposited into a corporate account. Corporate debts need to be paid by a corporate account. You need to have meetings, with minutes (even if you're the only person there). A corporation is very different from a sole proprietorship, so it's not enough to incorporate and then carry on with business as usual. The corporation has to be separate from the sole owner. The most common time that a corporate veil is pierced is when an owner doesn't pay any attention to whether things are coming and going from his bank account, and starts using the corporate account for personal bills. It all has to be separate.
Customer: replied 2 years ago.

ok i get what you are saying

 

i have asked several registering company agents here . they told me they can register LTD for me

 

if i run everything seperate for LTD and don't mix any personal account with the LTD business account.

 

my personal property would be safe and protected . right?

Expert:  Lucy, Esq. replied 2 years ago.
"Ltd." is a business form that carries limited liability, yes.
Customer: replied 2 years ago.
ltd is one form of incorporations? which can be registered under 1 person?
Expert:  Lucy, Esq. replied 2 years ago.
It is a type of limited liability business, most commonly used the UK. I'm not aware of any reason that it would be required to have more than one owner. Your question was posted in the U.S. law category, though, so the business forms that I have experience with are corporations and limited liability companies, as well as other forms used in the U.S. These might be questions that you would want to pose to the person who is planning to set up the ltd for you.

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