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Choosing The Best Legal Entity For a Business

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  • 01-25-2007, 02:51 PM
    Techie_xyz
    Choosing The Best Legal Entity For a Business
    I am a tech-geek who solely owns a small Website Development company. I've created, own and run three (3) websites that are 3 seperate internet-based businesses.

    I live in Nevada and currently have my Web Development company (the Parent company) set up as a Nevada LLC. I filed dba's for the three (3) website businesses (ie. Parent Company, LLC. dba mysite1.com, dba mysite2.com and dba mysite3.com).

    I want the Parent company and each websites to be protected from lawsuits individually, meaning, if someone attempts to sue Mysite1.com they are only suing that business. The Parent company and other 2 businesses should not be included in the lawsuit. Is that possible?

    What legal entity should I use for a Parent company who has 3 website businesses under its umbrella?

    I'm thinking of changing the parent company LLC to an S Corp.

    FYI- I do know that I should seek an Attorney for this but I am young tech-geek who stumbled into business over night and the Attorney hourly fees are too high for my budget.

    I do need to protect myself, my Parent company, my website businesses and all the work time I invest daily. So I'm going to do my due-diligence and set up my legal entity on my own for now. Your comments are appreciated.

    Thank you in advance.
  • 01-25-2007, 11:06 PM
    Lastingimpression
    Re: I own 3 different Websites businesses. Which legal entity should I use?
    Are these porno sites?
  • 01-26-2007, 02:47 AM
    Techie_xyz
    Re: I own 3 different Websites businesses. Which legal entity should I use?
    No they are not porno websites.
  • 01-26-2007, 06:37 AM
    Mr. Knowitall
    Re: I own 3 different Websites businesses. Which legal entity should I use?
    There's no 100% certain answer to "which form of entity will prevent liability". If you choose any entity type with a corporate shield (typically the LLC or corporation) and you manage the corporate assets separately from your own, you should be able to avoid personal liability. But as a one-man show, you would have difficulty demonstrating that the parent corporation (run and manned only by you) was not directing the actions of a subsidiary (also run and manned only by you).

    You may be better served by having three separate corporations, not tied together by the parent, than by having the parent and subsidiary arrangement.
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