Maybe. While LLCs offer significant flexibility to small businesses, California charges an LLC tax that can really cramp your profits. This tax is charged on your gross revenues for "privilege of doing business in California" as an LLC. Lucky you. Depending upon your situation, forming an “S” corporation may be a better option in California.

Additional Tax Issues

California allows a single person to own an LLC. This causes problems from a tax perspective. The IRS doesn’t really acknowledge existence of LLCs owned by one person. The IRS takes position that you must have two people to be taxes as a partnership. Accordingly, it treats single owner LLCs as sole proprietorships. The problem with this result is that you end up paying self-employment taxes.

While LLC structures provide significant flexibility, structure is not always best choice for a small business. Make sure you speak with competent tax counsel prior to forming an LLC for your business.

Generic and Descriptive Terms

Domain names that are generic or descriptive in nature cannot be registered because they fail to designate a distinctive product or service. For example, “sandiegobusinesslawfirm” is comprised of generic terms and describes who and where we are, to wit, a San Diego business law firm. This domain name cannot be trademarked. The same result would occur with bank.com, book.com, advice.com, etc.

You may be thinking, “What about ‘Coke?’ "Coke" is a trademarked term because it is a distinctive term for a soft drink product. It just so happens that a brilliant marketing plan has convinced most people to refer to soft drinks as “cokes”, even if they actually prefer another brand!

Trademarks are an important factor in protecting your Internet business. Armed with a trademark, you can keep competitors from pulling traffic off search engines when people search for your site.