DBA VS CORPORATION VS LLC
Take
this Quiz
to You'll Find Whether You are Required to Register a DBA ,
Obtain a Tax Id or Wholesale License ,
Incorporate, Form an
Limited Liability Company , or Register Your
Business by Filing a
Business License.
DBA
A DBA is just a
Document you are legally required to file. It helps you
open a bank account and be legal but it does not protect your
personal assets.
A Corporation or Limited Liability Company
A corporation protects you from civil, and financial
liability as well as saves taxes for you.
A Corporation or Limited Liability Company is a Legal Person. I.e., it is
its own entity like you and me with the difference being
that the corporation is a person in legal papers. Its
birth Document is the filed corporate Document and its
birthday is the file date. Its social security number
is a federal business Tax Id Number.
A corporation or Limited Liability Company can sue and be sued. It has
its own assets. Though the shareholders are the
owners, the shareholders are not responsible for the debts
or liabilities of the corporation.
The bottom line is that
since it is a separate person, even though you will be the
owner, you will not personally be responsible for the debts
or liabilities of the corporation. So if a court
judgment is entered against the corporation, the only assets
that can be seized, are the corporate assets.
If you have separate bank accounts, and the corporate
assets are one desk, one computer and $1000 in a bank
account, that is all that can be seized. No one can go
after your home or personal bank account.
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Should you file a DBA , Incorporate,
or Form an Limited Liability Company
In general, if you are one person, and have a lot of personal
assets,
incorporate or
form an Limited Liability Company. You will be protected. If you
don't have a lot of assets ( such as a home and an expensive car
), you may want to just file
a DBA to start. A corporation depending on the
state you want to incorporate, or form an Limited Liability Company , may cost $100 to $200 more than a DBA but it protects your personal assets. A DBA does not
protect you. If you file a corporation or an Limited Liability Company , you
don't need a DBA.
Note: If you incorporate, the default type of incorporation
is a "C" corporation. Then, you can change it to an "S".
So, just go ahead and incorporate or file an Limited Liability Company , you don't have
to worry a lot about the type of corporation or Limited Liability Company.
Should you get an Limited Liability Company or a
Corporation?
If you are a small business just starting out, just
get an Limited Liability Company to start. In most cases, you will not
be wrong. An "S" corporation is also a good
choice. You cannot go wrong either way.
The point now is to get some cheap insurance to protect
your personal assets and both of the above are good
choices. Later, you can change structure or
type of entity.
Should you incorporate or form
an Limited Liability Company in another state?
Just keep things simple for now. Just file in
your state, and you will be alright and able to save
money and have corporate protection. It is just
too complicated and it costs a lot more to incorporate
in a state other than the state in which your business
is located. Also, you may have to
incorporate or form an Limited Liability Company in your state as well in the
other state. That will cost you double.
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Frequently asked questions about DBA filing
 |
Difference
between a DBA and a
DBA
. A DBA , a “DBA â€Â
(Doing Business As), an “assumed
DBA †or a “trade name.†are
all the same.
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Corporation
or an Limited Liability Company DBA
You only have to file a DBA if
corporation name is different from trade
name.
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If I am
Doing Business under my personal
name, do I need to file a DBA ?
You don't need to file a DBA if you
doing business in your own personal
name. Only if the DBA is
a name other than your personal legal
name.
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How
does the DBA filing protects my business
name?
Generally, the name is not protected but
in some states the filing creates a
rebuttable presumption that you have the
rights to that name.
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Corporations
or Limited Liability Company s Doing business under a
trade name
You only have to file a DBA if
corporation name is different from trade
name.
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Do I have to
publish my DBA ?
You may depending on the state you are
doing business. Publication in included
in your filing fee.
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When
can I start my Business and open a bank
account?
You need to file
your DBA before you can start a business
or open a bank account.
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Do you
conduct a DBA search?
Yes, in most states, we will search for
DBA availability.
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