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JGM, Solicitor
Category: Scots Law
Satisfied Customers: 11142
Experience:  30 years as a practising solicitor.
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I have created a website. It will initially make no money but

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I have created a website. It will initially make no money but could do so if it proves to be successful. I wanted to encloses the site within a company to provide me with a safety barrier in case I am sued etc. What sort of company should I go for (I am the only person involved with it, I live in Scotland and the site will have a UK audience)? And how do I prove that the website is held within my company and not held privately. E.g. do I need to set up a bank account in the name of the company so I can pay for the domain registration etc through this bank account?

(An example of being sued: I list schools in the UK, and categorise them base on performance. A poorly preforming school may take exception to this and sue me. I realise there is a very low risk here, but I would like the option of just making the company bankrupt rather than getting involved in complex legal expenses.)
Thank you for your question.

You should set up a limited liability company and transfer the ownership of the website and the domain name to the company. You can be the sole director and shareholder of the company.

You should also get a solicitor to draw up a formal assignation of the copyright in the website to the company.

You can find out about incorporating companies at

There may be tax implication of you trading via a limited company as opposed to a sole trader. You should take tax advice from an accountant, however as far as personal protection is concerned, most lawyers would prefer that you trade as a company, have a company bank account etc.

Also ensure that the copyright and other legal notices are in the name and address of the company on the face of the website and that your own name appears nowhere.

Happy to discuss further.

I hope this helps. Please leave a positive response so that I am credited for my time.
Customer: replied 4 years ago.

JGM, Thanks for the reply - this clarified some things. However, what about the bit about the having a company bank account. I would rather not go to the bother of opening a new account at this stage as there will be no money coming in. So can I pay for any expenses personally and transfer ownership to the company? E.g. if I pay for domain registration myself, how to I prove that the domain registration is in the name of the company and not me personally?


You mentioned 'formal assignation of the copyright' is this to help if others steal my data (I dont think this will matter for me) or is this also part of giving me protection from being sued / proving the website is owned by the company and not me personally?

You don't really need a company bank account. If the domain name is XXXXX XXXXX the company this will be a matter of record on WHOIS or any other such sites.

Formal assignation of the copyright is so as to make sure that you have no personal liability.
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