legal formalities for a reseller hosting business?

[Irene9001]

Hi

I am thinking to start reseller web hosting business, as I am related to with web development since long the time and have some good knowledge about system administration. What I want to know, is there any legal formalities requires to do such as registration of a company, legal documentation or there is no need to do this? Few people told me that I just have to purchase domain for my web hosting site with good reliable package of reseller hosting and start reselling. I am novice in this business so I'll appreciate your suggestion if someone told me the right way to begin successful reselling business.

[LindyTaylor]

You can achieve success as you put your efforts in the right direction. Before going to start anything you need to do planning and organize the required thing in well manner. In my opinion you shouldn't start this business for part time hobby. If you organize all the essential things in the well format, then you can lead into web hosting field quickly. In terms of legal documents I think it is good to follow all the laws provision to avoid future conflicts issues.

[Michelle Taylor]

The most important part in any business is trustworthiness so I think you should register your company according to your state law. The registration of company will gives you business security. For example if register your company under LLC, which means if your customer lost their data due to your fault , they can take legal action against you, and will collect only assets, which belong to the business. They cannot go across your private properties.

[Kristine Habeck]

In addition, if you want to open a bank account under your company name, you will need to elaborate legal documents that your company is registered with the state law. On the other hand if you sign up for a credit card under the company name so you can maintain your personal and business transaction separate.

[LogenWilson]

For the security point of view I'll suggest you to insurance, which will protects you in case of mess up situations if you delete a customer's data and backups and if they take legal action against you. Indeed, insurance can keep you protected from the e business loss.

[jeremyc]

I don't think this is concern issue so you do not need to worry about anything until you start getting customers. There is no need to make hurry to register the company. As you are looking at the initial stage, so just start your business and when you well establish it, then register your company.

[Rozanne]

Furthermore if you just want to make the money from few clients, then skip the idea of LLC registration and business insurance. You really don't need it. Just pick the reseller hosting plan and start reselling. All the above comments are only applicable for the big web hosting companies, but for security concern issue you can consider them. After all it depends on you.