Should I go LLC? Residual income?

[Shawn]

Well, following Chris' all the way, I think I'm going to create a company and make it llc. That way, I'm protected personally, and frankly, I think it's a much more professional "hub," instead of my personal portfolio site. People trust companies (regardless of size) more than they trust an individual, that's a fact.

I have a name picked out, Studio Evolved, which will go at www.studioevolved.com. Since I do web development, this will basically be a company site to showcase works, (all client sites will link back to Studio E, including the sites I publish).

Do you think becoming a LLC type company is worth it, or should I just stay as Shawn Weeks and who cares?

Also, while I'm about to launch my first website for my own financial gain, I'm already thinking about the next one. I really am considering hosting - I know the market is saturated, but if I could start out with 25 customers or so,(including clients), that'd be an extra $400 a month. I also have connections at a hosting company, my actual costs before I re-sold would be very low.

So, opinions? Chris? Would your next site be a hosting company (I know you already have one - is it successful for you)? What would your next site be? Has being Jalic, LLC. worked out well for you?

[Shawn]

I know that was a bunch of rambling and poorly constructed sentences, but I'm tired. Sorry.

[Chris]

LLC's are cheap to form (see the link to bizfilings.com in our business management category on the website) so I'd recommend it.

As for hosting, buy your own server and use it for your own sites, then start renting the extra space out. This way you're starting into it slowly and are covering your own costs.

[incka]

I'm considering setting up a LTD (Limited Company - The UK's LLC equivalent). But I might not be able to because they don't like directors under 16, they don't ban them, but you have to present your case to them, and as I am only 13 I think it will be hard for me to set one up.

But would it be worth it? As I am under 16 I don't have to pay tax, so would there be a point in setting up a company?

[s2kinteg916]

you have a nice site for a 13 year old :eek:

[chromate]

Incka, you don't need to set up a company yet. There's just no need to. Maybe if you had an ecommerce site, but for your current sites it's not worth it. You don't need the hassle from the Inland Revenue ;)

[incka]

Update: Planning to set up company before start of new financial year as soon I will have to start paying tax (I was wrong about under 16, it's the same for all ages) as I will be earning more than the tax free amount, and the business tax free amount is alot larger (£20,000 profit a year, I think). Gareth Wright will also be in the company. It will be limited by shares, and will be a private limited company. I will be a company director and the company secratory and Gareth Wright will also be a company director.

[Nick]

I can't believe you're thirteen. Honestly, now, looking back, I don't even think I gained conscience as a person until 15.

You've got quite a head start on most people your age. Good luck.

[MarkB]

How much is it to form a LTD company in the UK?

[Mike]

Yeh, I'm wondering that as well...

[MarkB]

I found some online firms that will do it for you from £40 upwards.

[incka]

You can do it yourself for £20.

www.companies-house.gov.uk

I'm 14 now.

A company has to have 2 people in it by law.

Either a director and a secretory

Or

A director who is also the secretory and another director.

[MarkB]

Cheers incka :)

[chromate]

Do we actually know who Gareth Wright is? And what're you going to call the company Incka? You will also have a hard time persuading them to let you create a company as you're only 13. They'll be extra hard on you because of that, so make sure you have a good case for wanting to create one.

[incka]

It's 14 chromate, and Gareth Wright is a member of these boards, I think he is in the top 15 posters. He is 16. I know companies house will be hard to pursuade, but we'll manage it...

[chromate]

Cool. Hope it works out for you. Hope you're not getting into too deeper water though :)

So... what's the company name gonna be?

[incka]

Incka LTD unless there is a problem with that name.

[cinemaeye]

I'm getting ready to do an LLC myself. Thanks for the bizfilings link. That looks like a good way to go. Definitely the most affordable I've found on the web.

[incka]

What is the difference between Inc. and LLC?

[MarkB]

Inc. if you're incorporated.

[incka]

And that means?