New S-Corp for New Website

Discussion in 'Growing and Managing a Business' started by Defyf, Oct 11, 2012.

  1. Defyf

    Defyf
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    Hello Friends,

    I'm just getting ready to launch a website with HUGE potential to go viral. It is free and fun to do (and has not yet been done online). The income would only be from advertisements down the road once enough traffic is coming through, but not for a while.

    I did open a corporations subchapter S for liability purposes. I changed the registration of my domain name at GoDaddy.com and also the hosting company to reflect my corporation name with my personal name as the contact person.

    My question is: Is there any other formal way to transfer ownership of the website to the corporation rather than the steps I already thought of? Is there a form or something to completely transfer ownership of the website to strictly the business?

    Thanks in advance.

    -Mike
     
  2. Fergal

    Fergal
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    Hi Defyf, first of all welcome to our forum. Will your business be based in the US?
     
  3. Defyf

    Defyf
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    Hello Fergal, thanks for the welcome. Yea US operating out of NY.
     
  4. GeekGhost

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    For domain registrations, changing the registration ownership is enough to fully transfer ownership of the domain to the company.
     
  5. Business Attorney

    Business Attorney
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    First of all, just changing the ownership of the domain on the registration records doesn't necessarily make the person listed as owner the true owner. If it did, then anyone who hacked into an account and changed the ownership information would be the true owner. However, where you willingly change the ownership information to your own corporation, that would proabably be adequate proof that you transferred the domain name, without any additional legal documentation of the transfer.

    You said you were transferring a website, not just a domain. There is more to a website than the domain name, and transferring the domain name does not necessarily prove that you transferred everything else. For example, if you buy a domain name in a GoDaddy auction that currently has content on it, your purchase of the domain does NOT give you any right to the design, text, images, databases, etc... on the current website.

    Finally, some types of tranfers need to be documented. For example, unless you expressly transfer goodwill, the rights to any trademarks do not pass with the transfer. Copyright transfers should also be documented to give the new owner of the site the right to pursue infringers of any transferred copyrights.

    A free short form of Assignment of Domain Name and Website can be found at http://www.freelegalformslibrary.com/forms/domain-and-website-assignment.php In a case where you are transferring a domain name and website to your own corporation, the simple form is probably enough. Where you are buying a domain name and a website with content, you need a more complete agreement and should consult an attorney with experience in buying and selling websites.

    Finally, before you decide to put the website in a corporation (even an S corporation) you should discuss the issue with your accountant or tax attorney. If you sell the website at a substantial gain (rather than selling the corporation), you may be increasing your taxes on the sale. You need to make sure that you understand the pros and cons of the transfer.
     
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  6. Defyf

    Defyf
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    Hey what a wealth of information! Well basically I'm not sure if I made myself clear. I was developing a new site personally but decided for liability issues, to transfer ownership to a company. After Speaking to my accountant he told me to open an S corp and we did so. I have changed the registration on the domain name and the hosting service to the newly formed company. My question was " is this sufficient "? I noticed the link to a form to make it more official. If I fill that out, should I just keep it with my corporation binder as proof of ownership from me personally to the new S-corp?
     

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