Getting Started

[bluekid]

I already work an established adult website company but I'm ready to go into business for myself. My problem is I don't exactly know where to start. I know where I want to go and do with my website(s), but I'm more confused with the foundation of what needs to be behind the website.

I'm hoping someone can tell me the importance of creating the business that will carry the websites. After attending the legal seminars at Internext, I'm nearly frightened to do anything without some type of corporation being formed. I guess my question is how did everyone else get started. Do you think its okay to start with a sole proprietorship before incorporating, or does an actual 'business' need to be formed immediately before launching?

I know the old saying It takes money to make money is true, but I have limited resources available which I've already planned on using for the creation of the website and marketing. I would greatly appriciate it if any of you could shed some light on this situation for me.

Also, I would like to extend a HUGE thank you to Gary-Alan, Lee, and Chris-Alan for inviting me to this excellent resource. This place kicks ass. Also, another big thanks for all your hospitality in vegas, it was a pleasure meeting you guys!

Andy

[Bec]

Hi and welcome to the board!

[AusCoding Allan]

Welcome to the board bluekid, I'm really not the best person to be asking in respect to the foundation of your business, (I'm in AUS and all the laws are different) however I would definitely recommend a solid foundation as best practice in any business particularly one such as the adult industry.

You need to be prepared for the hard slog but the best way to learn is to hang around and ask questions - we'll all be only too happy to help.

Cheers,

Allan

[basschick]

are you talking about a paysite? i know lots of people who started their own paysite without incorporating - some without even a dba - but when you can afford it, it's probably a good idea to form your corporation. also, if what you heard scared you, perhaps for that reason, incorporation is a good idea.

perhaps spending $500 on an adult internet attorney would be a very worthwhile investment. your site can wait a little, and surely there are some things you can do without money to get started - stuff like design maybe? - but your peace of mind is priceless.

[gaybucks_chip]

I'm not a lawyer (though chadknowslaw is and will, I'm sure, be happy to help you out...) but the approach my former partner took when he started Boyfunk was to run the site as a proprietorship. When we joined our two separate companies, we became a corporation.

My understanding is that issues regarding creating a business entity are primarily tax advantages and liability issues... if you have a properly formed LLC or corporation, then it's the corporation or LLC that gets sued instead of you. Realistically, you're probably not likely to get sued as a small startup site, so it might not be that big a risk to start as a proprietorship.

HOWEVER, no business entity will protect you from criminal liability, such as 2257 violations (poor recordkeeping on age and identity of your models.) so you have to dot your i's and cross your t's from the start, keep clean records, pay your taxes, have a business license, and all that good stuff.

For general business startup/recordkeeping/etc, there's a great book called "Small Time Operator" you can find at almost any bookstore (or search bookfinder.com for a cheap used copy). It says nothing about the adult industry, but it will give you some good general tips on running a proper business operation. Nolo Press also has a ton of books on starting and running businesses, setting up corporations and LLCs, and other things relating to the legal field.

Of course, there's the old thing about the person that represents himself in court has a fool for a client... and there are definitely some pitfalls that you want to avoid that a good attorney can help you with... so I'd say it would probably be a good investment, if not at the very, very beginning, at least as soon as the first bucks start coming in.

Feel free to hit me back (chip at mrconline dot net) if you want more info on how we started.

[Dzinerbear]

bump

[desslock]

BoyFunk's suggestion of SmallTime Operator is a real good one. That is a great all-around basic book to anyone starting their own business.

Nolo Press prints a trove of books on all kinds of related topics that are also helpful to anyone self-employed. Last week, I also noticed that Fry's had a nice display of lots of Nolo books; a nice place to go and do some page browsing in person.

Steve

[Lee]

Welcome Andy great meeting you in Vegas :thumbsup:

Personally, id choose to go the 'C' Corp. route, its generally a lot less hassle to setup and, its relatively inexpensive too

Im sure Chad can give you some more info once he sees this thread

Regards,

Lee

[Madame0120]

This site will give you the best and most current information on running any kind of business.

http://www.sba.gov

I have run several businesses with only a DBA, but I decided after reading information on corporations, that an LLC would work best for our foray into the adult entertainment business. My reasons were many, but most important was to secure my personal and investors' property from any legal actions.

The LLC paperwork is more detailed, and yes, takes more work, but it is fairly fluid and can be adjusted easily. And in TEXAS, a $200 filing fee is all I needed to attain more protection and validity to our business. I was able to set up my LLC without the use of an Atty.

Than being said ..

From the start of our written business plan there were always monies allocated for legal matters in our start up costs. To me this is one of the most important accounts I established and even though I HATE spending money, I happily put Mr. Bernstein on retainer. The side benefit is I rarely worry about the legal end of our business and consider it money well spent.

With best wishes,

Madame
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[bluekid]

Hey Everyone-

I wanna thank you all for you kind and knowledgeable answers. To all who suggested that I pick up some books regarding small business, I actually did that last week and as I read through it all it gives me is more questions. I'm finding it hard to understand how most of it applies to an "internet company", but I guess I really just need to generalize the information and not take it so word for word. From your advice and some additional research, I think what I'm going to do is start with a DBA and then incorporate when the time is right. I do have every intention of hiring a lawyer when this time comes as I want everything to be on the up and up. Again, I appriciate all the advice and time you guys have given. Thanks!

Andy