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/biz/ - Business & Finance

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578671 No.578671 [Reply] [Original]

I'm in the process of starting a website services business in the US. I already have a business plan created, done market research and created a lead list and campaign (hasn't launched). The service is also ready to go.

The last hurdle before I can start signing work contracts is to set up my business structure. I desperately need guidance here.

Here's what I'm thinking, and it may sound stupid, so please correct me.
The business holds essentially no physical assets of value, only information. I would personally loan the corp money initially to fund its dependency services costs. When the corp makes money, it can either reinvest in marketing or services, or can pay me back on my high-interest, no-minimum-payment loan (an attempt to eliminate c corp double-taxation). The corp's profit will resolve to zero, and I will be personally taxed on the profit from the loan repayment.
In the event of a lawsuit against the corp, a corp identical to it would be formed and funded by me. The new corp would buy the information from the old corp so that the old corp can make its best attempt to pay off its debts to both me and the plaintiff before filing bankruptcy.

Please identify holes and criticize. I'd like to get this right the first time. I hate to admit I don't know much about these types of things..

>> No.578675

I'm no lawyer, but I think the IRS will have a problem with trying to evade double taxation (a series of legal steps that result in an illegal action is illegal) and I think courts would have a problem with trying to shuffle assets like that.

For asset protection, what you could try to do is set up a holding company structure. It works for protecting patents / equipment / property, but I'm not sure if it would work for just 'information'.

>> No.578687

>>578671
Not to sure on the first part you mentioned about ur best setup for tax purposes.
But on ur second idea of transferring all the assets to another new company that's called fraudulent conveyance. It won't hold up in court.

>> No.578688

>>578671
Also i want In on ur business I'm very resourceful. Let me know I'll shoot u my email.

>> No.578711
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578711

>>578675
For asset protection (my main concern), about holding companies. Is there a guide I could read about their setup / taxation / protection? Typing it all out here would be a bother for you, but I'd love to learn more.

You mentioned that it can protect "equipment". I'm sure that computer systems would fall under this. In that case a storage server could be the asset that contains all client and website information, thus being a specialized piece of business equipment with an easily determined dollar value based on physical parts.

Thoughts?

>>578687
>fraudulent conveyance
This sounds like it could be a problem...
What if the entity was just leasing the information / equipment from me personally?
It sounds like the defendant and its associates would have to display intent to deliver a lower dollar amount than the most ideal liquidation of its assets. If the company never had assets in the first place, just loan contracts for capital and equipment, would that still be a problem?

I'm not too worried about paying out based on physical assets, so much as I want to avoid their acquisition of the dependent services that the corp pays for.

The goal with this is, I want to protect my clients' websites and the contracts I have with them. No equipment necessarily even has to be involved. Are client work contracts considered assets?

(have to travel right now, I'll set up a burner email in a bit)

>> No.579101
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579101

>>578688
Back, here's an email. JoinTheStudentCouncil@gmail.com

When I was away, I went to speak with paralegal about these topics. It sounds like it's far too common for a prosecution to pierce a corporate veil by showing / bulshitting knowledgeable negative intent by any of its officers, thus the lawsuit could be directed against the respective officer directly, leaving their personal assets on the table.

What do we know about the option of a limited liability company?