Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Venturing into something soon and I honestly have no idea if I'll even make it the first year. Yeah, I know. Such optimism. . Anyway, I'm just wondering, starting new, should I hold off the LLC and go with DBA? Or LLC? I'm located in CA. If I do go LLC, should I get a law firm to file it? And their services range from basic $99 to $300, $500 depending on the service I want. Is it really necessary to pay for the $300-500 service?
Any input would be helpful as I need to make this decision soon.
I would generally say do LLC over dba, but it does depend on what you are doing. Is there risk you could damage someone's property or cause injury, if yes do the LLC. Here in Kansas I have a LLC for my restaurant and lawn mowing business, I set it up myself, very easy, and it cost $150 if I remember right. Most states have business center websites that can help you along for free. Don't pay someone to do it. You'll feel a lot more professional, people will take you more seriously if you have LLC behind your business name, and you get liability protection.
I would generally say do LLC over dba, but it does depend on what you are doing. Is there risk you could damage someone's property or cause injury, if yes do the LLC. Here in Kansas I have a LLC for my restaurant and lawn mowing business, I set it up myself, very easy, and it cost $150 if I remember right. Most states have business center websites that can help you along for free. Don't pay someone to do it. You'll feel a lot more professional, people will take you more seriously if you have LLC behind your business name, and you get liability protection.
Quote:
Originally Posted by swagger
If you ever intend to incorporate, do it at the start. You don't want to switch it later - trust me.
Yeah. I'd incorporate. Even if that particular business doesn't work out, keep filing the returns for the corporation and then use if for another purpose later on.
Is this a real business or kinda a halfass hobby? If this is a real business don't be cheap, spend the money upfront to get things done correctly or it could cost you a lot more in the longrun if your sued and your LLC isn't setup correctly to protect yourself.
I would recommend a New Mexico LLC. They have the best privacy basically only your name is on the articles of incorporation nothing public so it's going to be nearly impossible for someone to figure out who to sue. Also they don't charge you the yearly filing fee which I think California is gonna hit you up for about $700 a year. You also don't need to do minutes or any of that garbage which again a lawyer is going to charge you money to makeup and your state is going to charge you to file.
If you ever intend to incorporate, do it at the start. You don't want to switch it later - trust me.
Uh, no.
Please do not incorporate unless you must. There are very stringent guidelines in terms of business organization and paperwork/records you must keep. You will also be taxes at the corporate level and the personal level for wages you pay yourself. I can't tell you how many times I've seen 1-2 person companies who incorporate and ruin themselves.
Please do not incorporate unless you must. There are very stringent guidelines in terms of business organization and paperwork/records you must keep. You will also be taxes at the corporate level and the personal level for wages you pay yourself. I can't tell you how many times I've seen 1-2 person companies who incorporate and ruin themselves.
I believe it depends on the state on how it is taxed, but in Kansas and at the Federal level LLCs are taxed the same as dbas. It's not taxed like a corporation. No one is going to ruin their business by setting up as a LLC, it may very well be pointless in some scenarios, but it won't ruin anyone. You are not double taxed as the aforementioned poster is claiming.
There may be some variation of a LLC where it is taxed like a corporation, but this is not what the op needs.
Venturing into something soon and I honestly have no idea if I'll even make it the first year. Yeah, I know. Such optimism. . Anyway, I'm just wondering, starting new, should I hold off the LLC and go with DBA? Or LLC? I'm located in CA. If I do go LLC, should I get a law firm to file it? And their services range from basic $99 to $300, $500 depending on the service I want. Is it really necessary to pay for the $300-500 service?
Any input would be helpful as I need to make this decision soon.
My business was a DBA for many, many years... then, due to financial and professional reasons, I needed an LLC. It was a HARD transition... not the paperwork, but redoing my products, business cards... all the "backend" stuff.
I would say go LLC from the start. LLC can tax as a corp or as a DBA. I don't find a huge difference when doing taxes. I was able to set mine up myself, but you may want to contact someone and have them do it... most of the time your state will have a website and spell out exactly what you need. Fairly easy to accomplish.
I like having an LLC... people look at my business differently.... or at least I think they do. I don't know. End of the day they want a service/product... not even sure they care about the name. lol
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
. Anyway, I'm just wondering, starting new, should I hold off the LLC and go with DBA? Or LLC? I'm located in CA. If I do go LLC, should I get a law firm to file it? And their services range from basic $99 to $300, $500 depending on the service I want. Is it really necessary to pay for the $300-500 service?
