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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3612
Experience:  Solicitors 2 years plus PQE
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Setting up a website (social type affair)

Resolved Question:

Hi there I'm just setting up a website (socail type affair) and worried about the legal implications to me if it gets hacked etc or something similar.


 


I own the website personally and wondered should I set up a Ltd company and put that as the ownership to the company? (is this just a matter selling it to the ltd co. for 1 pence or something). My main concern is a lawsuit or something against me should something go wrong for whatever reason. The website will be storing user details and possibly and phone contact for each user Your help appreciated. Thanks

Submitted: 3 years ago.
Category: Law
Expert:  Alex J. replied 3 years ago.
Hi

Thank you for your question and welcome.

The whole purpose of a limited company is that your liability is limited to the paid up share capital of that company. Other personal liability may arises if you are a director of that company and you trade it while insolvent then you could potentially be personally liable but these as I say are limited circumstance in an insolvency scenario. A limited company will make it easier to sell the website, or bring in partners or finance as you can issue shares or debentures to secure against the company assets which you cannot do as a sole trader.

What you would need to do is form the company and you could sell the website to the company for shares.

If I were you my main concern would be you are storing personal data of people and therefore you may need to register with information commissioner under the Data Protection Act. A breach of the DPA could result in a fine or sanction so it may be prudent to protect your self from this through the limited liability of a company.

Can I assist any further?

Kind regards

AJ
Customer: replied 3 years ago.

Thanks for this, yes this helps me appreciate your reply


 


For now I want to launch the site just to get a feel for its interest before I continue 'properly'. If I just set up a ltd company online (today) for instance with myself as director, is it just a matter or writing a receipt to myself from the company for the sale of the site? (at some point)


 


If so it looks to me that I can do this very quickly at low cost and if the site doesn't take off nothing really lost. If it does I can then invest some money and get things moving.


 


(i'm up against a deadline at the moment so its just to cover myself at this initial stage)

Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

Yes - as you just conducting the transaction on paper with yourself and company owned by yourself then you just write a receipt. What I would do is form the company with one share and then when you are ready to transfer the website to the company you can then issue yourself another say 9 shares as "payment" for the website.

Setting up a company costs about £100 and can take as little as 3 hours to do.

Kind regards

AJ
Customer: replied 3 years ago.

Great Alex thanks again. I'll get on and do this now, and unless I can think of any more detail in the next few hours I'm done?


 


Good job. Ps if you know anywhere I get a good base for websites T&Cs then let me know otherwise, good day. Thanks!

Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

If you register with Simply Docs they have good precedents.

No problem please feel free to contact me.

I look forward to hearing from you.

Kind regards

AJ
Alex J., Solicitor
Category: Law
Satisfied Customers: 3612
Experience: Solicitors 2 years plus PQE
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