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pay for online content

I totally get that they’re strapped, but I think this is really bad news.

Rumors suggest that the New York Times is close to announcing that the paper will begin charging for access to its website, according to a post in NY Mag from earlier this week. Sources for this story are vague and shadowy, but supposedly include people currently employed by the organization and “familiar with internal deliberations” at the New York Times. If this story is true, the only thing close to good news is that word has it they are leaning toward a metered system of subscription where you will be allowed to read a certain number of articles on the New York Times website for free, and then after that number is reached would be asked to subscribe. This is, at the very least, far preferable to the system used by The Wall Street Journal where some content is free but the content that is protected is completely placed behind a wall, and totally unavailable (even and especially to search engines) unless you subscribe.

Sources for the New York Mag post claim that the official plan for the online future of the New York Times will be announced within a few weeks, but that any actual implementation of the policy will take months to enact. There is no official statement confirming or denying these rumors at present, and The Nytpicker demonstrates that most of this information has been reported in various forms from different sources over the past year anyway, so it’s impossible to claim that the New York Times is any closer now than it ever has been to figuring out how best to handle online content.

Whether or not the NY Mag story is legitimate, I am left wondering how this will play out. I am picturing that episode of The Office where there’s a link to the WSJ article about Dunder Mifflin going bankrupt and all the Office staff are standing around wanting to know more about it, but Oscar says they cannot read the whole story because it requires a subscription, and he is waiting for someone to give him the go-ahead to spend company money. In response, Michael says “Wow, $1.99 to read the rest of the story . . .” as if this is an unimaginable request, but that it’s time to move on, which prompts Jim to ask, “Are you serious?!” and put in a code. After all is said and done, Andy makes a point of saying that he’ll pay for the $1.99, but that Jim beat him to it (actual episode embed is above).

The metaphor makes sense to me: the Jims of the world will be willing to subscribe, but only when it’s absolutely necessary, and the Oscars and the Dwights of the world will look over the shoulders of the Jims so they don’t have to pay. The Michaels of the world will assume the content cannot be all that important, or certainly not important enough to justify an expenditure of $1.99, and remain unconcerned. The very concerned people in a particular niche, as well as the always-already-plugged-in consumers will subscribe long term, and everyone else will find something else to read. This would, in effect, mean the newspaper online experience a niche market in the future, which is fine, except they cannot support the infrastructure as it exists at present on that kind of budget. They’d have to be totally reorganized.

Source: Silicon Alley Insider

Let’s not forget that there are moments when papers of record like the NYT are crucial. Example: Haiti. How are we going to get coverage on Haiti without giant news conglomerates getting involved? Is Boing-Boing going to send out Cory Doctorow to report? What about Arianna Huffington? Will she actually foot the bill for a trip to Haiti, and is her unpaid writing staff up to the job? How good is Dooce’s photography going to hold up to people getting crushed under a building? Can you Photoshop in doom and destruction? Would she even be willing to do this? It seems clear that with situations like Haiti there’s just not anybody in the blogosphere fully equipped to deal with it: even with the idea of the citizen blogger at work, you cannot really rely on people in the middle of a disaster zone to stop what they’re doing and report for the rest of the world. I mean, is there WiFi in Haiti even under the best of circumstances?

It seems like the only way for the newspapers to survive is to bind together and create something like a global newspaper of record that provides almost all of its content in an online format only, for free, with advertising, and shares its resources throughout the globe. Every individual organization has to be pared down to its bare bones, and companies wanting to advertise will have to do so online. The newspapers need to just take the option of paper advertising out of their hands because, as this recent study of advertising dollar allotment shows, they just don’t seem to be getting it. Companies are still putting tons of money into print media in a totally disproportionate rate to how much they spend for online advertising, even as they lament the fact that the attention and the content has all gone online.

Just for perspective, I asked my Dad what he thought of the whole newspaper thing and what he was going to do about it, because I figured he’d be a good source, what with his love of print media and his general distaste for technology. He said that he had thought about subscribing to the Wall Street Journal, but that they wanted him to sign up for a whole year at a time, and he just couldn’t stomach it, didn’t think he’d use it, so he hadn’t gone for it. And what about The New York Times, what would he do if they charged for content and/or weren’t available in print format anymore? He said, “Well, I might consider subscribing to them if the LA Times stopped publishing or something.” Bottom line: even the old skool print people look to print as a local medium first and foremost — my Dad knows the NYT is a better newspaper than the LA Times, but it doesn’t have his local information, so he won’t be paying for a paper subscription, much less paying to view online content. I just don’t see how this model is going to work.

I’ve been meaning to incorporate ABDPBT for a while now, but I only recently actually bit the bullet and got it done. There are a bunch of reasons why you might want to incorporate a small business, and I’m not really going to go into those reasons in detail today — suffice to say that there are tax benefits and liability benefits that you might want to consider for your small business as it grows. (By the way, if you’re wondering if incorporating is for you, you can consult with a tax attorney or look at any of the eleventy billion web resources available on the topic). The purpose of this post is simply to show you how to do it, provided you’ve already decided to do so, because it’s not very difficult and there’s no reason to pay an exorbitant fee to a lawyer if it’s not necessary.

Why did I chose an LLC for my own personal business, rather than an S-corp or C-corp? Here’s the deal, you basically are not going to want to ever be a C-corp unless you are like IBM or something. That’s for really big ass companies with tons of employees and other moving parts, and the odds are that this is not you, because if it is you, you probably should be hiring a lawyer because it’s way more complicated than something that can be solved by an internet tutorial, particularly an internet tutorial written by somebody who is not a lawyer. (Yes, did I menetion that? I’m not a lawyer, so don’t take legal advice from me.) Anyway, we’re forgetting about the C-corp right now because it’s too crazy complicated and it would be like using a sledgehammer to kill an ant. We’re dealing with the question of whether to form an LLC or an S-corp, and there are pros and cons to both, but my understanding is that an LLC offers more flexibility than an S-corp and involves less red tape at the beginning to get it started. LLCs offer the same personal liability protection as a corporation, but with fewer of the stupid corporate hoops to jump through, like creating “shareholders” and having corporate meetings with minutes. With an S-corp, you don’t have to pay self-employment taxes, but you do have to give yourself what is considered a “reasonable salary” of fully taxable income, which can get tricky and expensive. Legally, ABDPBT can either be an LLC or an S-corp, but I’ve decided to go with LLC because of increased flexibility, and your mileage may vary. (That’s my totally layman’s take on it, please bear in mind that I am not a tax attorney or a CPA so please don’t take my advice on anything if you want to stay out of jail, &c.. )

Now, if you’re still with me, you might be confused about me wanting to avoid taxes, given that I’m a bleeding heart liberal. Yes, yes, I know: the thing is, I don’t anticipate there being any social security left by the time I retire, and I may be a bleeding heart, but I’m also a capitalist. So screw the baby boomers: here’s how to set up an LLC without paying a lawyer to do it for you. Go capitalism!

  1. Make sure you’re doing the right thing. The only way to know for sure that this is the right thing is to go to a trusted professional and have them evaluate your business and give you advice. Depending upon the amount of confidence you have in your own research skills, you can also look up the guidelines for each type of corporation here and decide which one you want to use.
  2. Check for local laws. Let’s say you’re me, and you’ve already determined that an S-corp is the right choice for your venture, and confirmed that your business is qualified to be an S-corp. Now you have to determine what your local state laws for incorporating are. I’m in California, so I’ll be giving you the steps for California, by the way. Here is a place to check for procedures in other states. Once again, if you’re not sure that your business qualifies as an LLC, you are going to have to check with a lawyer. Please do not ask me, because I don’t know, and you shouldn’t listen to me about anything. (Yes, I’m just going to keep on with the disclaimers indefinitely.)
  3. Check to see if the name you want is available. What? You mean you cannot just name your corporation willy nilly? No, sir. You need to make sure it’s available in your state. Here’s how you can do it for free in California: mail a Name Availability Inquiry Letter to the California Secretary of State’s office in Sacramento. California is lame, so you can only do it by snail mail, but you can also check name availability by establishing an acocunt with the Secretary of State.
  4. Reserve your name. Just because you’ve searched for a name doesn’t mean you’ve reserved it. The only way to your name doesn’t mean that you’ll get the name when you actually incorporate. If you’re worried about somebody taking your name before you get a chance to get all the paperwork done, you can file a Name Reservation Request Form to hold it for you. This can be renewed according to the guidelines listed here.
  5. File Articles of Organization (Form LLC–1) With Secretary of State. You can download the California form here. The fee is $70, plus an extra $15 (ratfuck) fee to have them handle a form delivered in person in Sacramento. Make sure to use separate checks for these fees, by the way. The agent for service of process on the corporation must be a California resident.
  6. Mail in the form and wait.It will probably take about six weeks to hear back.
  7. Obtain a Federal Tax Employer Identification Number. And now we get to the reason we’re actually doing all this crap: the EIN. We need to get this number so that we can start sheltering our income from taxes (a little bit). This number is like the social security number for your business, and once you’ve set up your business in your state, you can obtain your EIN online through the IRS website during the following hours: Monday – Friday: 6:00 a.m. to 12:30 a.m. Eastern time; Saturday: 6:00 a.m. to 9:00 p.m. Eastern time; and Sunday: 7:00 p.m. to 12:00 a.m. Eastern time. Once you’ve completed everything, the system will give you the EIN right then and there!
  8. Change everything over to the EIN. Once you have your EIN, you need to go to all of the ad networks, affiliate programs, and/or bank accounts and update your information. You probably have entered your personal social security number in order to be paid by these various entities, so you’re going to want to start switching over to the EIN and doing your business’ accounting separately from your personal accounting from now on. Good luck!