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Forum nameeCommerce
Topic subjectstarting new business online...legal questions, DBA, state ?
Topic URLhttps://www.businessownersideacafe.com/forums/dcboard.php?az=show_topic&forum=107&topic_id=439
439, starting new business online...legal questions, DBA, state ?
Posted by jenfagan, Wed Apr-15-09 10:34 AM
Hi, I am creating a website that is similar to a Craig's List type of community based website but different in many ways. The website is now built and almost ready to launch, but I do not know where to start registering my business (DBA?) and legal matters.

I still have to create terms of use and most likely have the business be an LLC. What are the steps...we have a name and a website. Which state do I register the business with...I live in NY and my co-partner lives in NJ. The business will be servicing all states. Where do I register the business...do I need a DBA? or can I just form an LLC. we have already spent a lot of money...and I am hoping to launch it with out a lot of red tape and money. Do I need to hire an attorney.. Thanks for any help!
441, RE: starting new business online...legal questions, DBA, state ?
Posted by hostingdiva, Mon Apr-27-09 10:25 AM
If you have a partner, do you have some form of partnership agreement? Make sure that you print out the e-mails where both of you have discussed your understanding of the partnership. If you haven't had this type of discussion, I would sincerely advise that you talk about this now. Keep in mind that whether you succeed or fail is not the issue - you just want to make sure that you have everyone's responsibilities clearly outlined.

Regarding the legal structure. A DBA (i.e., doing business as) is usually something you get when you are going to be a sole proprietor and you just want to use a business name. So, Joan Smith doing business as Smith's Window Services. This way, if someone writes a check to Smith's Window Services, your bank will accept the check. An LLC is a legal structure that limits your liability. You have to file both with your state. You can do it with NY or NJ. They do have different laws but since you probably don't care at this point, doesn't really matter. The business can be registered anywhere - doesn't matter. It will matter when you have to pay taxes.

You can find links here for NJ: http://craftersbuzz.com/businesslinks.cgi?state=New_Jersey
and here for NY: http://craftersbuzz.com/businesslinks.cgi?state=New_York

You should get an LLC because that will actually give you some legal protection if someone sues you.

I would keep in mind that if you are providing services like Craiglist - they get in all kinds of trouble all the time. They've been sued by several states and others:
http://news.bbc.co.uk/2/hi/americas/7928148.stm
http://en.wikinews.org/wiki/Craigslist_sued_for_hosting_discriminatory_housing_ads
If you plan on growing, it really would be in your best interest to consult an attorney to make sure you get the proper legal structure.
448, RE: starting new business online...legal questions, DBA, state ?
Posted by Antherry, Fri May-22-09 04:48 PM
Your LLC consists of two things- 1. Articles of Organization and 2. an Operating Agreement. Your Operating agreement IS your partnership agreement. It is filed with the state. It OVERRIDES state law so draft it carefully. If something in your agreement is not addressed then state law takes precedence.

In our Operating Agreement we have it set up where we each pick an outside person to settle a dispute...if the outside people cannot agree then we flip a coin for who gets to make the decision.

Also, you can, and probably SHOULD do a DBA WITH your LLC... Your LLC is a separate entity... so we are ESC Companies dba Flippij . This is because we have several companies and brand names, each with their own DBA.

You do not have to hire an attorney now... but if they do write your Operating Agreement for you it would be easier for them to defend later. But they just use templates too for the most part.

What you need to do FOR SURE... if you get started and make some money then definitely hire an accountant... they are worth every penny.

Thanks,
Berry
Want to start an online newspaper? Visit www.flippij.net/news
449, RE: starting new business online...legal questions, DBA, state ?
Posted by Antherry, Fri May-22-09 05:42 PM
Your LLC consists of two things- 1. Articles of Organization and 2. an Operating Agreement. Your Operating agreement IS your partnership agreement. It is filed with the state. It OVERRIDES state law so draft it carefully. If something in your agreement is not addressed then state law takes precedence.

In our Operating Agreement we have it set up where we each pick an outside person to settle a dispute...if the outside people cannot agree then we flip a coin for who gets to make the decision.

Also, you can, and probably SHOULD do a DBA WITH your LLC... Your LLC is a separate entity... so we are ESC Companies dba Flippij . This is because we have several companies and brand names, each with their own DBA.

You do not have to hire an attorney now... but if they do write your Operating Agreement for you it would be easier for them to defend later. But they just use templates too for the most part.

What you need to do FOR SURE... if you get started and make some money then definitely hire an accountant... they are worth every penny.

Thanks,
Berry
Want to start an online newspaper? Visit www.flippij.net/news