In which I vent, nonspecifically

[Koyaanisqatsi]

Bleh.

So I've been working for the last several months on my capstone project. (In our program, this is like a thesis, only for undergrads.) I've known since I started that there was a good chance it would make several companies with enough cash to buy and sell everybody I've ever known several times unhappy...but I figured, might as well go for it. Foolish me, I was depending on the law to protect me.

So I made the project as defensible as possible. Through a favor to a friend, I managed to get a lawyer who specializes in the area and has argued this sort of case as high as the supreme court to look at it, and their conclusion was it is perfectly legal. Of course, that doesn't protect me from shut-up-and-go-away suits, so I figured to run the project through a non-profit corporation...even if I can't afford to defend the project, at least I would personally be protected. Except now I'm told that there's a case in front of the Maine supreme court right now that calls into question whether a one-person corporation has any protections...and the case won't be decided until well after I would launch my project.

So basically I have a perfectly legal project that I can't launch because I don't have the money to protect myself or the project from nuisance lawsuits. Not like I have anything to protect, really...what are they going to do, seize my student loan debt? But I'm getting married soon, hopefully will shortly graduate and need a job and apartment, and I can't risk being sued into bankruptcy. This is ridiculous.

Ok. End vent.

[Japher]

Your school doesn't have a claim to your project?

[:) Smiley]

I don't understand the first paragraph - what the heck are you doing?

[JohnT]

We're not lawyers so our advice is pretty meaningless, but it sounds as if you're worrying about potential actions, and not anything that has already occurred. Am I right?

[Az]

Why a non-for-profit corporation?

If it pisses off companies, it is possible that there is money to be made, by making some of their **** useless. I think that you deserve some cash for this.

[duke o' york]

One person corporation? Do you know how much it costs to even start a corporation? It's more than a student could afford, so you'll have to get venture capitalists involved, and then it wouldn't be a one person corporation any more.
You're better off taking the idea to a finance house of some kind, and either flogging it for as much as you can get, or getting them onboard, and letting them pay for all start-up costs.

[KrazyHorse]

Originally posted by Az
Why a non-for-profit corporation?

For-profits cost some serious cash to register. Non-profits might be free or nominal fees.

[Koyaanisqatsi]

Your school doesn't have a claim to your project?

No. UMaine (though they don't advertise the fact) specifically states that the product of a student's work belongs to the student. I know, everybody is shocked by that...I was too when I first found out years ago.

We're not lawyers so our advice is pretty meaningless, but it sounds as if you're worrying about potential actions, and not anything that has already occurred. Am I right?

Right. That being said, everybody who's seen it has had two reactions: 1) Great idea, and 2) You realize there's going to be five or ten Fortune500 companies siccing their legal teams on you, right?

One person corporation? Do you know how much it costs to even start a corporation? It's more than a student could afford, so you'll have to get venture capitalists involved, and then it wouldn't be a one person corporation any more.

It costs about $400 to $500 to register a non-profit in Maine. I can afford that a lot more readily than a personal lawsuit if it gives me any sort of protection. This is also the sort of project that I may be able to get various grants, start-up funds, etc. to support, and while that might get me the money to incorporate, it wouldn't be enough to pay for a legal team. Also, if it is non-profit I don't have to deal with being taxed at the corporate level (so sayeth the lawyer I saw yesterday.)

I mean, I've certainly not given up on the idea. I'm still looking for solutions, I just don't have one right now (or even a glimmer of one, really. ) It just frustrates me to no end that I can't do something legal because I can't afford to defend it as being legal.

[JohnT]

Originally posted by duke o' york
One person corporation? Do you know how much it costs to even start a corporation?

... looks up records:

Filing Charter: $100
Filing Bus. Tax License (county): $35
Getting Tax-ID #: Free

So... $135.00 is what it costs to start a corporation.

[duke o' york]

Bloody hell. Still, you'll need expensive people to fill in all the paperwork properly.

[Koyaanisqatsi]

That's better than the number the lawyer gave me, but I'm guessing he was tacking his fees onto the actual costs.

[KrazyHorse]

Originally posted by duke o' york


Bloody hell. Still, you'll need expensive people to fill in all the paperwork properly.

Not really. My father's registered at least 3 that I can think of. It's a couple of pages long.

[duke o' york]

This is the modern American dream then. Starting a limited company in Britain requires a lot more in terms of cost and expertise (not that I'm suggesting your father is a dumbass).

[Koyaanisqatsi]

Yeah, I've actually done the paperwork on one before (though it wasn't submitted because we didn't end up having the people available we thought we would) and it is fairly easy. The only complication I had then was that a non-profit requires that you write out specific bylaws and that you name a board to oversee the company.

[KrazyHorse]

Canada.

And my father is not a dumbass...but is certainly not the guy you want doing your taxes for you.