Hosting an Unregistered Company

fr600

Hello,

I have a shared webhosting account where I'm currently hosting two of my websites and I can host more.

My friend manages a small investment company with his family funds. He knows nothing about web hosting and he asked me whether I could host and manage his website for the company.

The problem is that the company he runs is not a registered company. I guess it hasn't been a problem since he performs his business with his family funds only and under his own name.

He offered me a payment that would not only pay for his hosting needs but more. If I accept the offer, my own hosting cost would be negative. I'm very interested in the offer but I'm not sure whether hosting an unregistered company would be a good idea.

Given the case, could I get into any kind of trouble from:
1. the hosting company; and
2. other authorities?

Weedpacket

Depends entirely on company (and probably tax) law in your jurisdiction, and on your host's T&Cs.

For example, where I am an "unregistered company" is self-contradictory concept - if it's not listed in the Companies Register then it's not a company.

In this case the closest legal meaning of "unregistered company" would be that it is exactly the same entity as whoever is running it (rather than being an entity in its own right). In which case your concern becomes: "I'm not sure whether hosting my friend would be a good idea."

traq

more important than the legal status of your friend's "company" might be the status of your own - will hosting his site make you a "company," in legal terms?

For example, if a client of mine is audited by the IRS, I might be questioned about my dealings with him - but I am not going to be in any trouble, unless I wasn't paying my taxes either.

That, and, as Weedpacket suggests, your host's policies about reselling will be the big issues to consider.