should domainers incorporate/LLC? and a question on cybersquatting

[HomerJ]

hello.

is it standard for someone looking to start out in the business of domaining to get incorporated or form an LLC for the purpose of protecting personal assets? is this what most/all of you do? or do the majority of you just buy and sell under your own names? my concern is mainly about the potential for trademark violation and the likelyhood of lawsuits. I am not intending on buying any names that are trademarked, but lets face it, my good intentions are worth squat in a court of law.

also, i wanted your comments on this definition for cybersquatter in the glossary of this forum

Cybersquatter:
The illegal act of buying up domain names and “sitting” on them with the intent of making a large profit off the sell. Cybersquatters will often buy out large quantities of names, trademarks, or highly marketable names to try to make a buck or prevent others from lawful use of the name.

can anyone clarify this, because if it is illegal to buy domain names with the intent of making a large profit from their sale then i wonder what everyone is doing here? :lol:

HJ

 

[buymynames]

Cybersquatter:

The illegal act of buying up domain names and “sitting” on them with the intent of making a large profit off the sell.

It should be:

Cybersquatting:

The illegal act of buying up domain names and “sitting” on them with the intent of making a large profit off the sell.

Never like that word, but let me correct it anyway.

 

[DNQuest.com]

It should really be:

The illegal act of buying up trademarked domains and using them in "Bad faith" with the intent to make money from them.

 

[Biggie]

haven't considered "incorporating" yet. but it may be the next move.


also.....no such thing as "cybersquatter" in my "personal" opinion!

put the blame on the bad typist, for the huge typo market


everyone, including corporations and individuals alike, can participate in this business.
they have the option of registering, bidding, backordering, tasting or whatever to acquire any domain on the market.


just my "personal" opinion

 

[Namebrander]

I totally agree with the last two posts !
Business is business, are there any retailers in the world not inclined to sell for as high a price as they can get?
And as biggie mentioned - it's a free market
tm issues are another matter but what the hell is wrong with buying generic terms and making (hopefully) a massive mark up?
I totally agree with dnquests definition of what cybersquatting should be called

The illegal act of buying up trademarked domains and using them in "Bad faith" with the intent to make money from them.

 

[Theo]

By all means incorporate. The formation of an LLC or corporation will allow you more flexibility in managing your business assets and sizeable tax breaks, along with overall protection of your personal assets. A business is also eligible for business loans and offers from major banks and other financial institutions.

 

[typist]

also.....

put the blame on the bad typist

yeah, blame everything on me

 

[simon]

yeah, blame everything on me

:smilewinkgrin:

 

[straWbob]

A business is also eligible for... offers from major banks and other financial institutions.

What do you mean by this?

 

[Raider]

It should really be:

The illegal act of buying up trademarked domains and using them in "Bad faith" with the intent to make money from them.

I completely agree

no such thing as "cybersquatter" in my "personal" opinion! put the blame on the bad typist, for the huge typo market

A personal opinion many disagree with, including the US Senate that passed the Anticybersquatting Consumer Protection Act.

 

[HomerJ]

ok, i see everyone is piqued by the cybersquat issue, but not to get too hung up on it, it'd be good if more would address the first question about inc./LLC.

my initial guess right now is that perhaps not a lot of you have done so. no one worred about liability in this industry??

 

[Theo]

Incorporating costs are minimal and the benefits are multiple. I already addressed that in my earlier post.

What do you mean by this?

Exactly what I said.

 

[HomerJ]

yes, you did. but there was not a resounding majority, which leaves me thinking you are in the minority. not to say that makes you wrong. i think it is probably the safest smartest thing to do, and i will 99% go that route myself, but i was just curious if this is common practice. and judging by lack of response i am guestimating no. unless others will chime in and re-assure me that this is necessary step that everyone takes .. i will assume that most arent too concerned. idk, tho maybe this is the wrong forum to be asking in.

 

[buymynames]

my initial guess right now is that perhaps not a lot of you have done so. no one worred about liability in this industry??

Serious domainers incorporate, others don't.

It depends in the portfolio, domainers who have premium domains and been around in this industry long enough are incorporated.

No guarantees, so this is the risk you take, so it'll be up to you.

Goodluck to your venture and welcome to the world of domaining (not cybersquatting)

 

[straWbob]

Exactly what I said.

Acroplex,
Corporations can receive business loans, I understand that.

I was looking for an example to your vague comment that businesses are "also eligible for... offers from major banks and other financial institutions." Are you saying that for a one-man shop (implied by the original question) business checking accounts are worth the time, effort, and expense of incorporating?

Liability coverage I understand. Business loans I understand. Both are strong benefits. Do you have an example of what those other "offers" are?

 

[Theo]

As long as your finances & credit score are in good standing, a single member LLC transparently reflects your own status.

 

[domaingirl]

I completely agree with Acroplex. You should definitely incorporate to protect your assets and to maximize tax deductions. Nobody should have any business that isn't incorporated. I've had 2 S-Corps since 1998. LLC's also work well. But you have to consult your accountant to see which is best for you.

 

[gawnd]

if you're serious about this as more than just a hobby, there is no excuse not to incorporate.

 

[Biggie]

I completely agree



A personal opinion many disagree with, including the US Senate that passed the Anticybersquatting Consumer Protection Act.

This "Act" is a precedent for something much more sinister.

When settlers were getting land in America just by going out an staking a claim, it wasn't called "land-squatting".

Now those who grabbed up the most land and are now the biggest RE developers, are still not called "land-squatters", even if they NEVER build anything on it!

That is the rational for my argument.

imo...

 

[acronym007]

Cybersquatting is a media made term to describe their ignorance of the domain market and technology as a whole. Everyone that does not develop a domain name could be considered a "cybersqutter" by their standards. You could spend 12 hours with ABC news and they would never understand the concept of parking or paid advertisements. The media is slow to understand our business, our people, what we really do. So, the guy that bought a prime piece of real estate in NYC and sits on it, is he a criminal, some sort of squatter or does he have legal right to that property? Please let's not get into the fundamentals, I'm not referring to trademarked terms but before careful to agree with the usage of that term because by their understanding it includes 98% of us in this forum that own but never develop our domains, as if we have to?