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5 New Internet Marketing Opportunities Through RSS
Copyright 2005 Rok Hrastnik When it comes to new internet marketing opportunities for your business, RSS just might be the answer you were looking for. Here are just some of the new opportunities it can provide you with … 1. PODCASTING AND...
Free Internet Marketing?
The game of internet marketing can be a tricky one that can hold back many affiliates and webmasters from becoming successful. Jumping into an Ad-words campaign could cost you a lot of money for no results if you are like many. One of the best ways...
Internet Marketing For Frugal Site Owners
Every site promotion expert knows that fresh content is the primary way to increase site traffic. But newbies to Internet business may not realize the power of content. In this article we will outline the reasons why fresh content is so crucial to...
Relieving the Internet Marketing Anxieties
Copyright 2005 Jason Tarasi Does the thought of internet marketing intimidate you and make you cringe? If so, rest assured you're not alone in the hysteria. I've met many business people who are well-educated and extremely experienced in...
The Realistic Way to Start an Internet Business
Copyright 2005 Peter Dobler We all are in search of the silver bullet that will put our business on autopilot and the only thing we have to do is to cash the checks. Aren't you looking for this as well? Isn't this the reason why you're...
 
Internet Partnerships - Don’t Throw Away Your Business

General partnerships are a poor business entity choice when it comes to pursuing business activities. They fail to provide the asset protection shield that should always be put between your business activities and personal assets. Many small businesses, however, find it profitable to combine their product or services with other small businesses. In doing so, they often fail to realize that they are subjecting them to the same exposure as a general partnership.

Why Even Worry About It?

You put a lot of time, money and sweat into your business. After years of effort, you have it fine-tuned and are making a nice living. How willing are you to lose your business?

Consider the following hypothetical situation involving two sole proprietors. Our first party, Programmer, creates computer programs for managing websites. The second party is Mark, the owner of a site that provides small businesses with websites. Programmer and Mark come to the conclusion that they can make big money by opening a joint site. This type of situation occurs every day on the Internet. How should they do it?

The best option is to form a corporation or LLC. Each party will own an agreed upon percentage of the company. Mark will contribute his marketing ability while Programmer contributes software platforms. The bylaws [administrative rules] of the corporation will detail how profits are divided as well as detailing who gets what [domain name, client list] if the relationship doesn’t work out. If a corporation or LLC is not formed, each party exposes their individual businesses to liability just as would occur in a general partnership.

What has been accomplished? Mark and Programmer are protected from liability arising from the new business. If the company fails or is sued because of problems with the software, Mark and Programmer


will avoid personal liability and their original businesses are not touched. Are they completely protected? NO!

Mark and Programmer are still open to liability on the "back end". Without realizing it, each trusts the other to properly run their independent businesses. Why is this?

Assume that Mark and Programmer follow the above plan and the business is very profitable. One day, Programmer is served with a lawsuit claiming that he violated copyright laws with a program that he developed before meeting Mark. The nine companies to which he sold the program also sue him. The trial goes badly and Programmer is found liable to the tune of $750,000.

Guess what happens next? Since he is a sole proprietor, Programmer's interest in the joint business with Mark is seized to satisfy the judgment. Alternatively, he files personal bankruptcy. Either way, Mark is involuntarily going to have a new business partner that probably can’t program! In short, we are talking about a disaster.

How To Protect Yourself

Business entities are the key to limiting your exposure to liability. In the above situation, Mark and Programmer should own the joint company as individuals, but they should form business entities for their personal businesses. If the personal businesses are sued, their individual ownership of the joint venture entity is shielded from attachment.

As a general rule, you should form an individual business entity for each business you own. By doing so, you are better able to limit the potential damage of a lawsuit involving one of the businesses.

About the Author

Richard Chapo is with SanDiegoBusinessLawFirm.com - Go to our article section to read more business law articles.

 

Internet Marketing Center®
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Marketing Terms.com - Internet Marketing Reference
Marketing and internet marketing terms, acronyms, course syllabi, and recommended links.
www.marketingterms.com
 
Internet Marketing Dictionary
The Internet marketing dictionary at Marketing Terms.com.
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International Internet Marketing Association (IIMA)
Non-profit professional association serving Internet marketing professionals and business strategists.
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Free Internet marketing eCourse, marketing articles, advice and internet marketing services from Magnet4web. The site includes reviews of leading internet ...
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Internet Marketing - Craig Upton
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Internet Marketing News from JDD Publishing's BizWeb eGazette
Free Internet marketing help and web site promotion tips for small and home based businesses.
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Offers Free Website URL Registration in major search engines. Search Engine submission services and optimization tips for higher ranking.
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