Starting A Reseller Hosting Company

[prospector]

Hi,

I plan to purchase a reseller account to start my own hosting business.

What I'd like to know is how much liability I'll have.

I could register the business as a sole proprietorship but that would leave my personal assets completly open.

Do the terms of use and disclaimers protect you enough or should I register the business as an LLC to protect my personal assets.

What have people done in the past?

Thanks for your help,

Randy

[Jaxx]

From a purely business standpoint, regardless of whatever business you're in, you should never go with a sole proprietorship precisely because of the personal liability issues. At the least, form a LLC or to be the most protected, form a C-Corp (regular corporation). I'd also avoid S-Corps.

 

I recommend that you do have all the proper disclaimers and terms of use in place, but don't rely solely on them to cover your assets.

 

I don't have a reseller account, but I do own a couple of businesses and am incorporated. I'm not an attorney or accountant, but just giving some thoughts based on my own studies, experience, and counsel.

 

I also suggest that you do some reading on the topic and check with an accountant and/or attorney.

 

HTH

[TCH-Don]

You might also check with a few small business owners near you to get their opinions.