You’re raking in the dough and feel like the sky is the limit! Then one day….

*Your ideas are stolen by another business claiming them as their own.

*You are sued for poor recommendations or misleading/false content on your site.

* You are denied financial assistance because you applied for a loan too quickly and without proper documentation.

* There is no celebration party for all your success. Why? No one will recognize your business without substantiated paperwork.

       All of the above problems disappear when you start acting like a proper business entity and not a lemonade stand! Examine the way in which ideas transition from early beginnings to eventual success.
The first way to protect yourself and ideas is to keep quiet! As they say, “Loose lips sink ships.”  The second way to protect your idea is to form a legal business entity.  You are going to have to do this eventually, but the sooner you do it the better.  Don’t worry, it’s not as complicated as you may think, but there are key things you need to know about forming a business.

       There are many types of business entities, but I highly recommend incorporating.  Aside from incorporation, the remaining business entities include forming a Partnership, Sole Proprietorship, or Limited Liability Corporation. After taking into account the unique nature of online commerce, I recommend filing a C Corporation. Filing under this specific entity will maximize the protection of your site and its content. You have invested far too much time in your site to foolishly compromise it through inadequate protection. Reflect on this point for a second. If you are not incorporated you cannot do much more than ask someone to stop stealing your site’s content. As a corporation you have the ability to slap a Cease and Desist order on the same scumbag stealing your site’s content. Obviously, a Cease and Desist order combined with a lawsuit is far more effective in enforcing the protection of your material.

       You will always rest easier knowing that any potential problem with your business will be handled effectively under the protection of a corporation. Incorporation will form a protective barrier between you and any potential attack on your parent’s, house, car, or bank accounts. Please protect yourself from the scum that exists in the business world. Do not take a naive approach to your business entity because there are plenty of scammers waiting to take advantage of your inexperience. Partnerships and sole proprietorships have the least amounts of protection. You can be sued personally if you do not file as a corporation. You want to be outfitted with complete body armor, not just a shield! LLC’s are becoming increasingly popular. LLC’s though, do not have the rigid history that C Corporations enjoy. The main problem with LLC’s is their short legal track record. This means that there are many legal loopholes left uncorrected. A corporation is strong, proven, and the best option for online entrepreneurs. 

       I have compiled some clear information for you to better understand corporations.  Please take the time to read them, before you begin the filing process. 

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