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we just setup a company, 123abc LLC, and bought a domain name (www.123abc.us). We want to have a web server to host our web site and a mail server to handle our company email (jamesw@123abc.us). We plan to find a host company to host our web site. Can they provide the company email service to us? If we want to host by ourself in the future, can we setup our own mail server as well? What's the relationship between the domain name and email service? If we bought 123abc.us, we also bought the @123abc.us email domain?

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Yes, when you own the domain you own it for email and web (and ftp and finger and gopher and sftp and anything else). Each service can be routed independently; this is done in the DNS configuration.

I advise most clients to use Gmail-hosted email under their domain name, as setting up and maintaining email servers with really good spam filtering is a significant chore.

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You've got gopher on your list, but what about archie? :) –  Ward Feb 12 '10 at 4:12
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There need be no relation between where your company's website is hosted and where email is hosted. Where your email goes is determined by an MX record in your DNS. The MX record can be changed to point wherever you want it to point without affecting your web traffic (which uses either your DNS A or CNAME records).

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Yes, a domain name can be used to accept both web and mail traffic (or indeed, any internet requests).

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