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  #11  
Old 04-07-2013, 10:40 AM
krzys555 krzys555 is online now
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Join Date: Jun 2012
Posts: 108
if you don't own a house or have money in the bank or family. a dba is just fine.

however if you do have a house in your name, get a llc or a corp to help protect yourself from a lawsuit.

with start ups and revenue under 50k the differences are very minimal when it comes to taxes working solo.

differences in taxes start when you hire people or get to a larger sum above 100k a year
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  #12  
Old 04-07-2013, 11:04 AM
S&AProp S&AProp is offline
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Join Date: Apr 2013
Location: Kansas City, Missouri
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Llc

I'm new to the forums! In Missouri you can LLC your business for 50.00 , paperwork is all completed online. I went to the secretary of states website, You may also be able to try this in your own state.
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  #13  
Old 04-08-2013, 05:58 PM
AlohaMowing AlohaMowing is offline
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Join Date: Sep 2011
Location: Hilo, HI
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Either an LLC or d/b/a can be the right choice. In most places, there will be little difference in the filing costs. Some people may be intimidated by the nature of an LLC and may want an attorney to assist with the creation. If in doubt, consult an attorney and get accurate information rather than the well-intentioned, but uninformed, advice you may find in the forums.

It is essential to have liability insurance regardless which business form you have. With an LLC you may be comfortable with less coverage.

Federal taxes are exactly the same on LLCs and sole proprietorships (d/b/a's). You would need to get an EIN for an LLC -- that is the same as an SSN but for a non-human entity. You get that from the IRS. See http://www.irs.gov/Businesses/Small-...8EIN%29-Online

An LLC protects personal assets from liabilities of the business, but only if you do things to preserve that protection. The most likely place people run into trouble is with the way they handle the assets. Use a check from the LLC bank account to buy your groceries because your personal checking account is short, and you lose the protection. (Use the LLC check to pay yourself for your services, and then write your own personal check to the grocery store and you probably are okay.) Use the truck that is owned by the LLC to help a buddy move, and you lose the protection. Basically, to maintain the protection of personal assets you need to use the business assets only for business purposes.

I have 2 businesses. One is an LLC, the other is a sole proprietorship. There is no right or wrong answer to the question of which is right.
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