Thread: DBA vs. LLC
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Old 01-13-2004, 01:22 AM
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Kelly's Landscaping Kelly's Landscaping is offline
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Location: Milford CT
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The corporate protection or corporate umbrella as my old tax attorney use to refer to it isnít full proof. A bit of background is in order my lawyer was a tax lawyer for 30 years before that he worked for over a decade as an IRS field agent. And what he did drill into my head was the veil of protection was only good as long as you treat a corporation as such. What that means is this when you sign for something tac on your position in our cases president. You need some sort of corporate mins. Do you cut checks out of your personal account or do you some times directly deposit business income into your personal account.

Where this becomes important and thereís a lot more to this is when you end up in court either being sued or for taxes they can opt to attack your umbrella. Ummmm your honor Mr. Scaper here has not ever treated this venture as a corporation and he in fact doesnít have one its just on paper. You get the nightmare un-folding in front of you. Any ways if that is ruled you do not in fact follow corporate laws you could infact lose your protecting and despite having the fancy title they could infact go after you Personally. As for how to organize your business I would recommend you still incorporate just make sure you run it as a real corporation most go LLC I happen to have an S corp. but they are pretty similar.
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