A buddy of mine and I started a web hosting company back in 2002 as a
side job.  We have grown since then and now have servers located in NJ
and clients from all over the world.  My friend is getting out of our
business and selling his "spot" to me.  It has pretty much been in his
name the entire time (bank account, merchant account, server loans,
etc.).

Before I take over, I want to make sure that everything is legal.  We
have not formed a business entity.  I would like to form an entity
(maybe LLC?) ASAP so that I can create a business checking account,
etc. and move everything into our hosting company name.  However, I
want to choose the right entity.  I want personal protection for my
home and family, but I also want to make the right decision in regards
to TAXES!

Our bank account is in Alabama, our servers are in NJ, and our support
team is outsourced.  Therefore, we don't have any "employees" other
than me, the new owner.  I live in Alabama.  We do not sell any
tangible goods ? everything is a service.  Hosting or domain name
registration.

PLEASE HELP!  I would like to contact an attorney and CPA, but I have
received some outrageous quotes!  I can file an LLC with the state of
Alabama for about $75 I believe.  However, I want to make sure that I
do all paperwork correctly and file everything that needs to be filed.
 I also want to make sure that I don't get slammed with more taxes
than needed because I chose the wrong entity.

After all bills, etc. per month.....we are only bringing in about $500
profit or so per month.  However, I expect that to grow a lot since I
will be devoting a lot of time to the company now.

What are other reputable hosting companies doing in regards to entities and taxes?

I guess we should definitely form an entity in the State of Alabama
and not somewhere like Nevada or Delaware?

I would also like someone to review our terms of service/agreement
sometime.  We got them from somewhere online and tailored them to our
company, but have never had someone review them to make sure that we
have everything needed.

Thanks for your time!

Consider forming a corporation in Nevada.  
Don't skimp on proper legal advice.  My suggestion here is to find
someone local, someone you can meet and talk to anytime you wish. 
Shop around to find the best deal but don't take the cheapest route
just because it's cheap.  You will want someone with direct experience
in this area.
Good Luck

[url="http://www.thetntsite.com/"]TNT Everett[/url]

If you would like to register your business in Alabama directly to
make it the cheapest, goto the goverment site.

http://www.sos.state.al.us/business/llc.htm

Oh dear, jonmck-ga, what have you done?

And, more importantly, HOW did you do it?

There have been no more questions asked since you posted yours.

Was yours destined to be the ULTIMATE QUESTION?

Or has the system reached capacity?

And is this the END OF AN ERA?

Goodbye, Everybody & A Happy New Year!

Mike

Mikomoro,
I think G-A started celebrating the new year a bit too early on the
31st (cheap Cal. bubbly and resulting hiccups).  Not only have there
not been any new questions, but new postings have not shown up on the
list of questions  (although there on the pages when one opened the
questions).  I emailed the G-A Editors about this hours ago, but they
are usually not around on the weekend, anyway.
Really funny, is that about an hour ago, the list of "all questions"
was re-sorted to reflect new postings  - without showing an increase
in the no. of comments, but then this new sort disappeared.
Strange ...
Myoarin

Interesting

I put up this question a few minutes ago:

My guess is that GA is located on an inverted pyramid of machines
- and that underlying changes are propogated up by a 'push' mechanism
- while deeper queries use a 'pull' mechanism

What seems to have happened is that the 'push' mechanism failed on Dec
30th which is why no new questions are getting through and the No of
Comments is not getting updated.

I expect this question to be posted - but not to appear.

---- It went through Ok, but as I expected, it has not appeared

I wonder whether the problem is 'regional' 
- eg: European IPs are the only ones not able to read the latest data

That would explain a lot.

If anyone with a USA IP reads this, then please post and describe what
you see on the main question list
(eg: is this the last question ?  
  Are the number of comments and locking flags correct on posts prior
to this question ?)

Ladies & Gentlemen

Yes, GA is located under the ancient Pyramids of Giza that were built
some 4,500 years ago but hitherto this was a closely guarded secret.

Unfortunately, the Pyramids are haunted by ghosts of various Pharoes
who resent the intrusions below their final resting places.

As students of Egyptology will recognise, the recent events were
forecast by Nostradamus who predicted the beginnings of end of the
world in 2006.

Goodbye World and Thank You for Everything.

Bryan

I'm in the US.  This is the last question.  There are no questions now
listed on "Recently answered questions".

Dear Nelson

Tradition requires that you should now post the immortal phrase 'Kismet Hardy'.

Please, before it's too late.