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I would set it up as a limited liability corperation. The advantage being you would only be limited to what the business could pay out if someone brought suit against you for some reason. Also, I would assume you would need a business license for the business. Even though it is web based, you would be running a business nonetheless.
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Thanks for the tip, guys. I've been putting a lot of thought into this. I found a site that does the same thing but hires many people to do the work on a contract basis - I think I might try working for them first and then try branching out on my own.
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