To LLC or to Incorporate for a small, one-man web design business? What are the benefits and downsides to each option (LLC, Inc, or not)? Is the process complicated? Do I really need an attourney?
Background: I run a 1-man operation. I design and maintain websites for clients in a variety of industries. The business requires that I maintain a webserver which I pay for basically out of my income. I will eventually have to turn over the keys to certain aspects of my customer's website (content maintenance, if they don't have a service contract through me) and I'm a little concerned about subsequent content on the server. Not that the clients I have now would put anything negative/illegal/libelous on the server, but if their FTP passwords were social-engineered or hacked out of them...
I'd like a little protection for my work too. I generate FAQs and other technical manuals on a variety of topics and I'd like to have them copyrighted. I think it might be easier if they were registered to the web design company. I'd like to register domain-names under a business' name too (privacy).
I've also found that many large and medium-size businesses would prefer to do business with a registered INC (seems safer to them, perhaps?).
Could you provide me some generalized information regarding how and why can setup an LLC? What are primary differences between an LCC and an INC? Which is less hassle for a 1-man operation? How does thsi influence my taxes and bottom line? Are there any serious reasons *not* to do this?
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