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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
Who's talking about an LLC? Incorporated means (INC.) A "Corporation". I agree that an LLC is the way to go in most small business scenarios because it keeps people from being unorganized from co-mingled accounts.
Any input would be helpful as I need to make this decision soon.
I don't know what you're planning to get into but... How many contracts have you sold? Or how many pre-orders do have?
In other words what have you *sold* so far?!!! That's key! If you haven't sold anything yet then you need to stop worrying about LLC, DBA, and the rest of that stuff. Because until you sell you don't have a biz. Even if you have an LLC or the rest of that stuff.
Also don't bother getting started with setting up an accounting system or buying brochures or a new suit or anything else until you've SOLD SOMETHING!!!
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
A DBA is not a business entity. There is no "DBA tax."
Strange isn't it? I think that people will come up with a question like: "Is their a DBA tax or anything?" Then it goes from question to fact in their minds with no conscious effort on their part.
A DBA is not a business entity. There is no "DBA tax."
I don't know how people get these crazy ideas.
I meant sole proprietorship... but actually thought the OP mean SP instead of DBA... the way he explained it was not very well... but hey, assumption made... either way a DBA is taxed (no matter the underlying vehicle). No way around that, buddy.
Who's talking about an LLC? Incorporated means (INC.) A "Corporation". I agree that an LLC is the way to go in most small business scenarios because it keeps people from being unorganized from co-mingled accounts.
A lot of people talk about an LLC... it is very flexible.. and the name of this thread is DBA or LLC... lol..
I meant sole proprietorship... but actually thought the OP mean SP instead of DBA... the way he explained it was not very well... but hey, assumption made... either way a DBA is taxed (no matter the underlying vehicle). No way around that, buddy.
TAXPHD, the welcoming a-hole... lol
Moderator cut: you are referring to something that has been deleted
A sole proprietorship and a DBA are not the same thing, but thanks for playing.
Moderator cut: you are referring to something that has been deleted
A sole proprietorship and a DBA are not the same thing, but thanks for playing.
As I mentioned I already know a sole proprietorship and DBA are not the same thing. Already said I used the wrong name... it is a forum. lol
My overall point was to let the OP know my experiences of changing a business later.
But my direct point to you was that even a DBA will pay taxes... there is no way around a DBA not paying taxes since it will be taxed by the underlying vehicle.
I've setup plenty of successful businesses... thanks.
But my direct point to you was that even a DBA will pay taxes... there is no way around a DBA not paying taxes since it will be taxed by the underlying vehicle.
I've setup plenty of successful businesses... thanks.
That may be your point, but you are wrong.
A DBA is not a thing. It is not a business entity. It is not a taxabale form of business, because it is not a form of business. A DBA doesn't pay taxes because it is not a taxpaying entity. One does not operate a business "as a DBA." It is not an alternative to a LLC, a corporation, nor any other business entity form. DBA (doing business as) is a fictitious name registration, nothing more.
I'm sorry that you don't understand that, your extensive business experience notwithstanding.
A DBA is not a thing. It is not a business entity. It is not a taxabale form of business, because it is not a form of business. A DBA doesn't pay taxes because it is not a taxpaying entity. One does not operate a business "as a DBA." It is not an alternative to a LLC, a corporation, nor any other business entity form. DBA (doing business as) is a fictitious name registration, nothing more.
I'm sorry that you don't understand that, your extensive business experience notwithstanding.
Oh, goodness... I know all of that already. I know it is not an alternative... as I stated, I meant SP... go back and read the original post... that might help you understand why my first post in this thread was worded the way it was.
But you seem "stuck" on what you want to believe: That only you can understand this information. Or that I don't, even if you don't know me.
Honestly, you might be smart and know your stuff, but that sometimes gets in the way of some people... you are overthinking this... if you have a DBA it is attached to SOMETHING if in business (which is how the OP setup his question)... which is why I said "underlying vehicle".
Yes, I've setup a number of businesses since 1997... not sure I'd call it "extensive" but I know a little something. Thanks for playing... this is getting boring now.
OP, hope you got what you need... hit me on PM if you have a question.
Last edited by King_of_DC; 04-13-2014 at 08:21 AM..
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