Strategy to protect my website from liability by creating an LLC and adding my site

[mrepic]

What is the name of your state (only U.S. law)? Georgia

What do you think of this plan of action to get a small website/blog to be owned and operated under an LLC?

Goal: Protection from liability for my website/blog. Keep my personal assets out of this

Background: This will be in Georgia. Website operates in Georgia. LLC will be created in Georgia. Website is ran only by me and I will be the only member of the LLC. The only form of revenue generated from the site are ads from various ad networks.

Hypothesis: Create an LLC and have my site/blog be owned by and operate under this LLC

Steps:

Create LLC - Proper filings will be made with Secretary of state either by myself or using a paid service to do it for me. Either way, will also have to get a registered agent for the year to accept legal documents. A paid service will be preferrable for the registered agent as I don't want to make my name and address public record. After submitting all the proper paperwork and paying fees, I will have a LLC of which I am the only member of. Now I need to make my website be an asset of this new LLC.

Change ownership of website/blog - The website is a Blogger site using a custom domain. Domain was registered via Google Apps, who in turn registered the domain thru GoDaddy. Google Apps uses private registration via DomainsByProxy. I can login to DomainsByProxy and update the registrant info to reflect the new LLC. Back on the website, a statement will be added to the bottom of every page that this site is owned and operated under this LLC. The About Us/Contact Us page will also be updated to reflect this new LLC.

Taxes - Website is generating less than $600 a year. Being a single-member LLC, I can just use the pass-thru tax option and report any earnings from the site on my personal return rather than applying for an EIN for the LLC. At a later point, I can go back and apply for an EIN and have the LLC have it's own taxes to be filed with IRS. Getting a bank account and EIN are not of importance for the current goal. Liability protection is first goal.

After above steps are completed, I can rest easy knowing my personal assets are safe from someone who might get upset about content on my site and decide to take legal action. Or from copyright claims or any other legal disputes.

 

[tranquility]

What is the name of your state (only U.S. law)? Georgia

What do you think of this plan of action to get a small website/blog to be owned and operated under an LLC?

Goal: Protection from liability for my website/blog. Keep my personal assets out of this

Background: This will be in Georgia. Website operates in Georgia. LLC will be created in Georgia. Website is ran only by me and I will be the only member of the LLC. The only form of revenue generated from the site are ads from various ad networks.

Hypothesis: Create an LLC and have my site/blog be owned by and operate under this LLC

Steps:

Create LLC - Proper filings will be made with Secretary of state either by myself or using a paid service to do it for me. Either way, will also have to get a registered agent for the year to accept legal documents. A paid service will be preferrable for the registered agent as I don't want to make my name and address public record. After submitting all the proper paperwork and paying fees, I will have a LLC of which I am the only member of. Now I need to make my website be an asset of this new LLC.

Change ownership of website/blog - The website is a Blogger site using a custom domain. Domain was registered via Google Apps, who in turn registered the domain thru GoDaddy. Google Apps uses private registration via DomainsByProxy. I can login to DomainsByProxy and update the registrant info to reflect the new LLC. Back on the website, a statement will be added to the bottom of every page that this site is owned and operated under this LLC. The About Us/Contact Us page will also be updated to reflect this new LLC.

Taxes - Website is generating less than $600 a year. Being a single-member LLC, I can just use the pass-thru tax option and report any earnings from the site on my personal return rather than applying for an EIN for the LLC. At a later point, I can go back and apply for an EIN and have the LLC have it's own taxes to be filed with IRS. Getting a bank account and EIN are not of importance for the current goal. Liability protection is first goal.

After above steps are completed, I can rest easy knowing my personal assets are safe from someone who might get upset about content on my site and decide to take legal action. Or from copyright claims or any other legal disputes.

It is very hard to protect your assets from your actions when you are talking about IP law or another person getting "upset" about content. Even an LLC is not bulletproof for normal legal disputes when it is underfunded.

 

[FlyingRon]

First off, a corporation will not protect a business against it's own liability. An LLC or corporation may prevent one of it's members/owners from certain liability for the corporate acts but even then you're responsible for your own personal acts and if the LLC/Corporation appears to just be a sham to hide your personal liability that will be pierced. For example, if I put up a website and said that mrepic was a steaming pile of dog poo and other libelous things, I'd still be liable no matter how many corporate entities I wrapped the site in.

 

[breakaway]

"It is very hard to protect your assets from your actions when you are talking about IP law or another person getting "upset" about content."

Would this apply only for LLC or would this also apply for a Corporation?

I'm not talking about an instance where a person is starting a "sham" LLC/Corporation, but a legitimate one.

 

[FlyingRon]

Everything said here applies equally well to corporations as llcs.

 

[mrepic]

The term 'upset' wasn't the best word choice. I'm legitimate LLC.

Trademark and copyright infringement seem to be two liabilities that happen a lot. With copyrights, for example, how do you imagine these sites that do picdumps get by? Most state that they are using images under fair use and believed to be in public domain. Or maybe having multiple members of an LLC is the key to protection.

Maybe they have slipped by and it's just a matter of time before they get hit with a lawsuit? I see sites like this all over the place; such as chive (ಠ_&#3232, izismile, acidcow, dailypicdump, pleated-jeans, dailypicsandflicks, stewpig, etc..

Anyway, thanks for your feedback!