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DBA?.....LLC?.......or INC.?

Discussion in 'Starting a Lawn Care Business' started by SperiorLM, Feb 27, 2007.

  1. echeandia

    echeandia LawnSite Bronze Member
    Posts: 1,131

    Here is an example of what I was talking about. DBA means Doing Business As which is the use of a fictitious name for an organization. Thes is using his own name and is not DBA anything. However, his company is organized as a Sole Proprietorship. DBA and Sole Proprietorship are not the same thing.
     
  2. thes

    thes LawnSite Member
    Posts: 106

    Yeah...the whole "doing business as" thing didn't come into play for me at all...sorry that I used that phrase in my post. :hammerhead:
    These things are hard to make sense of sometimes. :dizzy:
    Thanks for clearing that up, echeandia. :waving: :clapping:
     
  3. TSG

    TSG LawnSite Senior Member
    Posts: 444

    Before you make up your mind,,,talk to a CPA,,,there are some major
    differances between a LLC and an S corp. If you put your CPA in the same roon as your attorney, you will come out incorporated. The liability aspect is almost the same but the taxation is differant. You will keep more is you are a corporation or sole-prop with more Insurance.
    Just .02
    Alan
     
  4. TSG

    TSG LawnSite Senior Member
    Posts: 444

    Just got off the phone with my CPA
    LLC are subject to 15.3 FICA + income tax.
    S Corp can distribute income better and are not subjest to FICA on distributions.
    You can also work a retirement plan better based on W2 income.
    1/4 of this guys clients are Lanscapers.
    Just another .02
    Alan
     
  5. echeandia

    echeandia LawnSite Bronze Member
    Posts: 1,131

    An S Corp and LLC are very similar with regard to the handling of income by the owners. In both cases income is passed through to the owners. S Corp's and LLC's do not file income taxes directly. LLC's are easier to maintain with regard to paperwork and meeting and have largely replaced S Corp's as a result.
     

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