Excellent question. I think I read something about licensing, but in truth, I was wondering the very same thing and look forward to someone shedding light on this.
Ive actually contacted a few attorneys on this, and am trying ot find out more info and will post in a few weeks.
A while back I put up a post for Media Insurance, let me look...this is an important issue, especially if you are operating your site with user generated content...
Thank you! I think most of us would really appreciate anybody finding out more information in regards to this...
Here is the post from a while back on media insurance... http://www.namepros.com/dot-tv/31387...insurance.html.
And everybody should take a real close look at this... http://www.mediaprof.com/..
Here's what I think a person developing a communal .tv sites should do:.
1) Incorporate first (Couple hundred dollars I believe).
2) Generate revenue.
3) If you are making a lot and have a lot of users, get the insurance.
Please share your ideas on how to avoid getting your business shut down due to possible legal cost (if someone is to sue).
For incorporation: Contact your State's Secretary of State. Filing an LLC is relatively cheap, under $100 here for just a generic one, I imagine other states are similar.
FYI: Do NOT go through one of the online websites that offer to incorporate you for $199 or whatever. Go directly to your state's Secretary of State website first. They will likely be able to walk you through it a lot quicker and a lot cheaper. For instance, one of the online things will charge me $199. Going direct to my SOS, I pay a $60 fee...
LLC in CA is 800 / year so it's a more expensive option and the other alternatives may be cheaper and provide the same benefits an incorporator is seeking from an LLC, but as always you should consult an attorney and accountant before making any decisions...