Do I need to form a company to sell an ebook?

[Ashley Gable]

hey The whole legal thing has been getting to me as this is my first time selling on the web.

I was wondering about company issues. Do i need to form a company..like an LLC...i know how to form an LLC but is it necessary and why?

Or can i just sell it as an individual?

I just want to cover my ass for everything i can! I am selling this ebook to kinda get my feet wet..but i also dont want to be in court for doing something that was avoidable! I am thinking about buying mike youngs legal form generator as i have heard some good things about it.

Anyways I hope someone can tell me if it is necessary or not.
ashley

[Scott Burton]

This is a marketing forum, and while members here may be able to offer advice and insights, realize that these are all based on their personal experiences and their personal perspectives.

Since you are looking for information about legal protection, it would be best to consult with a legal professional. Especially since the laws affecting my business, may be very much different from the laws affecting yours.

We have members here from the United States (which state to state differences are bad enough!), to the United Kingdom, Nigeria, France, Japan, Malaysia, etc.

I could offer a little first hand knowledge from my part of the US, but I couldn't begin to suggest what actions would be better for someone in another country.

A properly formed LLC or Corporation can greatly protect your assets should things go badly, but at the same time, they add significant amounts of responsibilities to ensure you do not breach their protections.

My experience is more closely relating to corporations, and I've had little experience with LLCs. But I know that mingling of personal and corporate assets, failure to follow procedures established for the corporation, etc, can result in a court ruling that the corporation offers no protection of your assets.

I would imagine there are similar limitations to consider on an LLC.

[ObsidianKnight]

In one word, No.

In a better option, yes. At some point you may wish to form a company. This becomes great for branding all your products under one name. which may often help increase your sales.

Depending on where you live, it can be cost prohibitive to incorporate early on. Get some sales and some money first. When you are ready to incorporate, check with a qualified attorney to make sure you are going about it the right way.

[Oracle_320th]

Also forming LLC in some countries can give significant tax loophole

[jasonl70]

you can do business w/o incorporating.. it's called being a 'sole proprietor'.

[Ashley Gable]

Thanks
I think i gave the impression i wanted to form a company..i dont i just wanted to be sure i didnt have to...so..I will just be a 'sole proprieter'!

Although the tax loopholes sound good! but i dont think i will be making enough to notice a difference!
Anyways thanks i am going to start up my site tomorrow..i am pretty excited!
Thanks ashley

[jgoffshore]

Originally Posted by AshleyAA

Thanks
I think i gave the impression i wanted to form a company..i dont i just wanted to be sure i didnt have to...so..I will just be a 'sole proprieter'!

Although the tax loopholes sound good! but i dont think i will be making enough to notice a difference!
Anyways thanks i am going to start up my site tomorrow..i am pretty excited!
Thanks ashley

Yes, you don't have to form a company and can trade as a sole trader. Depending on which country you live in you may need to register the fact that you trade under a name different from your own. So if you are called John Doe but trade as JD Information Services you will need to register that fact in some countries and also make it clear to potential customers who you are and that you own the business trading under that name.

You might find this information on different types of business structure to be helpful.

[fh2903]

You don't need to incorporate to get going but it is HIGHLY recommended if you plan on doing any significant business.

[Shane F]

Talk to an Accountant first, they don't charge by the hour like attorneys do and know this information better in my experience.

[MaskedMarketer]

Originally Posted by jasonl70

you can do business w/o incorporating.. it's called being a 'sole proprietor'.

Doesn't being just a sole proprietor leave the company and owner more vulnerable to lawsuits and legal stuff if its not a LLC?

[laurelwachtel]

Thank you for your detailed reply Scott, it seems you can create a business without creating an incorporation strand of it because if you were to create it by yourself you would simply be a sole proprietor of a business. Thanks!

[Ashley Gable]

Yh thanks for all the replies...I think I got it sorted out..I will get it started and if I start to make some good money then I will look into it in more depth!

Thanks