Legal Question in Business Law in New York

Re: Online Business

This is a question that can best be answered in a phone conversation. There are pluses and minuses to each form of entity. One thing you really don't want is a sole proprietorship, since it would not protect you from personal liability.

Generally, LLCs in NY cost much more to set up than Corps, due to the NY legal publishing requirement, which could add from $299 to $1299 to the overall cost. However, most of my clients still prefer the LLC, since the paperwork is easier, and the structure more flexible. Filing and maintaining a corporation requires more initial paperwork and ongoing recordkeeping.

I can set up your LLC or Corporation for as little as $97 plus the filing fees and other requirements. Feel free to contact me for more info.

Re: Online Business

My colleague's answer is correct as far as it goes. You also need to consider the type of business you will be doing online, what jurisdictions you may be doing business in, etc. You should also pay attention to your financing needs as certain forms are more readily invested in than others by angels, VC, mezz, etc.

In any event, you should speak with a competent attorney with experience in corporate, e-commerce and finance issues and be guided accordingly.

Good luck.