Raleigh, NC asked in Business Formation for North Carolina

Q: Are there ways, other than the creation of an LLC/Corporation, to get limited liability for the owners of a website?

The website is a side project of us (not officially launched yet) and will mainly contain user generated content. Revenues may be based on ads but will not happen in the near future after launch. Such ways would need to allow us to benefit from DMCA Safe-Harbor, and stay personally protected against lawsuits concerning infrigements of copyrights, trademarks, patents, etc.

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1 Lawyer Answer

Ray Beckerman

Answered

A: In the first place, the only way to get any form of limited liability is through setting up an LLC, or corporation. Secondly, limited liability will protect the shareholders from certain types of corporate liabilities, but NOT from tort liability such as copyright infringement, trademark infringement, patent infringement, in which those shareholders were involved.

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