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Old 09-19-2013, 05:02 PM
CL&T CL&T is offline
LawnSite Senior Member
 
Join Date: May 2011
Location: New York
Posts: 491
Quote:
With a DBA if you use credit and the business goes bankrupt your personal assets are up for grabs. An LLC will protect a portion of your personal assets from that claim.
True except creditors are wise to this and will require a personal guarantee which puts your personal assets on the line. Sometimes if the business has been established a long time and has an excellent credit history they will let you sign in the name of the company. But don't count on it unless it's for a low credit limit. And if you are a new company it has no credit history, so the only way to get credit is in your name. So now you are back to the same as being a DBA.

Quote:
I have had some (including the Sec. of State) suggest I ask our accountant. Since it is just hubby and I just getting started (lawn mower/whacker with plans to get a few more items), we are our own accountant.
Big mistake! Not to be rude, but if you are asking these kinds of questions you really do need professional input. Do you know anything about the required record keeping, sales tax, setting up a business checking account and how it should be used, determining your net income and filing the proper tax forms at tax time? You don't have to have an ongoing relationship with an accountant but you do need one just to get you set up properly and keep you out of trouble with the IRS and state. The one time expense is money well spent.

Last edited by CL&T; 09-19-2013 at 05:06 PM.
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