Need help on starting my business.

MorelandR84 said: "Ok guys. I need a real business pro on this one. Here is my situation and questions for all at the end: Myself, and two Other Investors have developed this program. Basically what this program is may seem like a scam because its been on the news but this one really isnt. Its a work from home opportunity. We charge someone a fee of lets say $100. For this 100 bucks they get a page at our eMall. There page has affiliate account banners and such on it, as wells as products they will earn a commission fee from. We take half there startup cost and drive traffic to the mall, so as it expands people keep making some money. We have reviews and much more to keep traffic comming back so they keep earning money. We also have a VIP group that for lets say $500 we make them there OWN emaill and they can market it themselves so the money making possibilities would virtually be endless for that person. (We also offer profit sharing from money generated on pages not owned by a client of ours) My Problem is, I dont know what type of incorporation I need, or if I need one at all. We will be running Google Adsense and other programs liek that that require a SSN or EIN number. If we don't incoperate one person will have to cliam all on there taxes but we have 3 investors. SO I think incoperating is the best idea. So anyone that knows what type of incoperation I should get involved with for a web based business like this please post here and let me know what we should do. Any help will be VERY much appreciated."

chahinemm said: "[QUOTE=MorelandR84]Ok guys. I need a real business pro on this one. Here is my situation and questions for all at the end: Myself, and two Other Investors have developed this program. Basically what this program is may seem like a scam because its been on the news but this one really isnt. Its a work from home opportunity. We charge someone a fee of lets say $100. For this 100 bucks they get a page at our eMall. There page has affiliate account banners and such on it, as wells as products they will earn a commission fee from. We take half there startup cost and drive traffic to the mall, so as it expands people keep making some money. We have reviews and much more to keep traffic comming back so they keep earning money. We also have a VIP group that for lets say $500 we make them there OWN emaill and they can market it themselves so the money making possibilities would virtually be endless for that person. (We also offer profit sharing from money generated on pages not owned by a client of ours) My Problem is, I dont know what type of incorporation I need, or if I need one at all. We will be running Google Adsense and other programs liek that that require a SSN or EIN number. If we don't incoperate one person will have to cliam all on there taxes but we have 3 investors. SO I think incoperating is the best idea. So anyone that knows what type of incoperation I should get involved with for a web based business like this please post here and let me know what we should do. Any help will be VERY much appreciated.[/QUOTE] By what i understand of the business model i still feel that its part of the MLM approach but maybe im missing an important information. :confused: Well in terms of business incorporation my suggestion would be to incorporate it but find out what type u want where there is one person taking care of everything and 2 other just investing money or an equal share. You have to decide who makes what and who is doing what. You should google some of the online business incorporation criterias and im sure you will find some info... Initially i personally would have a partnership until we start generating cash and proove that the business plan is solid and can move forward toward incorporating and even bringing more investors and more technical brain in. but that offcourse is not knowing the structureof the business plan and making lot of assumptions. Good luck in it and if u need any technical or nontechnical help let me know. chahinemm"

MorelandR84 said: "What is the MLM approach?"

chahinemm said: "MLM is multi level marketing approach also know as pyramid scheme. it just pretty much as there it the main program or one person and recruits lets say 10 people who are supposed to themselves recruit 10 and so on. the only way the top 10 make money is that the 10 below them get 10 more people like a pyramid and grows exponentially. so its pretty much an infinite loop... never really heard a company succeed using this strategy for they did not sell any quality product or service so lost on the long run. If you want to talk more in detail about ur plan pm me and explain me your strategy and so forth and maybe i can guide you a bit. chahine"

MorelandR84 said: "I sent you a PM"

HappyHarry said: "A primary reason you want to incorporate is to limit your liability. If there are 3 partners, it's very iffy to use on person's social security program. That person can end up holding the bag. Also, get your agreement with your partners in writing right now, in order to avoid conflict later."

MorelandR84 said: "Ok, so if we have an agreement signed by all of us, do we even need to incoperate? Our financials will be starting out VERY small and if we get sued we will have to pay it even if we incoperate because our inc wont be able to. I am more worried about getting an inc because I dont want anyone to have to use there soc. What type of inc is there that would be good for guys like us and we could still get some type of EIN number for the business?"

misterjover said: "Just to let you know, incorporation in CA is perhaps the strongest veil against your personal assets, and to this day, no lawsuit has ever broken that veil. I suggest getting set up with an s corp, and whenever you make any claim or purchase for the business, always make it clear that your principal is the corp whereas you are simply an agent. Having a corp is like giving birth to a child with a new tax id number and a credit score that needs to be developed. Getting set up as a Nevada corp isn't a bad idea either. You can report losses eternally in Nevada and still maintain your business."