Re: fictitious business name, license, and LLC

In article <[EMAIL PROTECTED]>, Jim <[EMAIL PROTECTED]>
wrote:

> 1) Is it alright to operate this way without getting a business
> license in the city I live in. I'm in an apartment at the moment and
> it is more of a pain plus all the moving I'm doing....

I don't see a problem.  The one thing you need to check is if the
zoning at your parent's address allows a small business.  You don't
want to get set up, then have a neighbor complain and fubar the
whole deal.

> 2) I'm considering using my name. If I use my last name 'only' do I
> have to file for a fictitious business name in the following case:
> i.e,  'Norman Media' or would I have to use my full name.

I believe that you need to use your entire name, since the business
name has to specifically identify you.  If you are not specifically
identified, then you need to file for a business name.  You can check
with your secretary of state's office.

> 3) If I do use my name; and I  use say "xyzhosting.com" instead of
> NormanMedia.com, will I have to file a fictitious business name for
> "xyz Hosting" even if I state on the bottom of the website that "xyz
> Hosting" is ran by "Norman Media."

Here you would need to file for a business name.  You would advertise
it as "Norman Media, doing business as xyzhosting.com".  Both names
would need to be registers.  If you do "Hank Q. Norman Media, doing
business as xyzhosting.com", then you only need to register the 
latter name.

> 4) and... should I form a LLC for liability protection since I may be
> dealing with a large number of customers on a monthly basis

That is largely subjective.  Contrary to what you read, a corporation
(or LLC) doesn't do much for the little guy since you are not running
the business with an outside board of directors, officers that are not
related by blood, nor with an independent auditor.  Many companies
don't even keep their minutes up to date or call formal corporate
meetings, or issue stock certificates.  If you don't act like a
corporation (or a LLC), a good lawyer will punch right through the
corporate veil and hold you personally responsible.  And that is if
you can get that far without having to sign personally with your
vendors and on contracts (which most smart companies will require
you to do).  As a result, you don't get much for a corporation or
LLC, other than a lot of extra paperwork, taxes, and expense.

I recommend getting started as a regular business, and do your
accounting off of IRS Schedule C.  After you get established, and
find reasons to do so, then consider incorporation or LLC.

-john-

-- 
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John A. Weeks III            952-432-2708         [EMAIL PROTECTED]
Newave Communications                       http://www.johnweeks.com
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