Small business owners?

[likeitfast55]

Started a business. What is the difference in having a sole proprietorship or DBA vs a LLC?

Registered the name with clerk yesterday. I went to bank and started an account for it as well. All of this is new to me and I am sure I will make mistakes. Also registered name with IRS for a tax ID.
Any other thoughts, tips, advice in the early stages?

I understand that I can "convert" it to a LLC at a later date. I could not find any benefits to a LLC right away.

Thx.
Randy

[2011GT]

Still going to work for American?

[sosoe]

Google is not working for you? I have done tons of research on this (via Google)and still have not gotten a business name.
I'm sure when searching on google the first few topics / links can give you sufficient information.

***edit.
And start off with DBA once you have sufficient work and business is good convert to LLC

[sosoe]

DBA Basics
A DBA is not the legal name for a business -- it is simply the name that a business owner wants to use to sell products or provide services. A DBA is sometimes referred to as a fictitious name, trade name or assumed name. All states have laws regarding the proper registration and use of a DBA. Some states, such as California, Florida and Connecticut, make registration of a DBA mandatory before it can be used by a business owner.

LLC Basics
An LLC is a separate legal entity from the individual member or members who formed the LLC. In contrast to a DBA, the name of the LLC is the legal name for the business and must be used on all government applications and forms, such as a business license or tax filing. Each state has its own laws regarding the formation of an LLC; however, unlike requirements for a DBA, no state requires a business to form an LLC. The decision to form an LLC is voluntarily made by the business owners depending upon whether such a business structure is beneficial for them.

Personal Liability Protection
One of the primary reasons a business owner decides to form an LLC is the protection it provides the business owners’ personal assets. The owners of the LLC -- called members -- will not be personally liable for decisions or actions taken by the LLC. With regard to a DBA, there is no such protection from liability. Because the DBA is not a separate legal entity, all business decisions and action taken using the DBA are the responsibilities of the business owners.

[likeitfast55]

Still going to work for American?

Oh yes, still here at AA. Just trying to retire, and set up a small business for a little income and enjoyment.
Got my FFL and hope to turn a small profit over my spare time. An old friend in Baton Rouge has a family business that is a gun distributor. He is going to set me up, so to speak.

[sosoe]

How long did it take to complete the DBA at the clerks office? I might head to them this Thursday and get mine knocked out. Also, what did it run?
Shoot me a PM if possible.

Thanks,

[GrayStangGT]

We started as a sole proprietor, but eventually decided to convert to LLC for 2 reasons.

1. Too many employees and and trucks running around creating lots of liabilities.
2. Being able to rent personally owned property back to the LLC, due to it being a separate entity. My dad owns all of our shops and they are rented to the LLC instead of a salary for him.

[Kart21]

Just from Experence:

Get with the state for a sales tax number as soon as you can. Will save you lots of P.I.T.A. issues.

And stay on top of the quarterly reports. Even if you don't use it. They will hit with back " you owe us " even if you didn't do anything. With or without it.

I was doing a DBA. Small Machine shop.

GOOD LUCK!!!

[sosoe]

We started as a sole proprietor, but eventually decided to convert to LLC for 2 reasons.

1. Too many employees and and trucks running around creating lots of liabilities.
2. Being able to rent personally owned property back to the LLC, due to it being a separate entity. My dad owns all of our shops and they are rented to the LLC instead of a salary for him.

That's what Id like to do, Start off and once more income with the shop and responsibility id like to go LLC.
But i'm stuck in an ignorance zone with Sole Proprietor and DBA. Same thing or big difference?

I also don't want to mix my shop taxes with my desk job taxes. I just don't feel comfortable at the moment for some odd reason. I know if I do get insurance checks I need to report on those.

[sosoe]

Just from Experence:

Get with the state for a sales tax number as soon as you can. Will save you lots of P.I.T.A. issues.

And stay on top of the quarterly reports. Even if you don't use it. They will hit with back " you owe us " even if you didn't do anything. With or without it.

I was doing a DBA. Small Machine shop.

GOOD LUCK!!!

Going to get one for sure, when buying parts I will eventually be asked for a tax ID

[racrguy]

LLC for sure. If someone sues the company they can't take everything YOU own, just what the company owns.

My dad owns all of our shops and they are rented to the LLC instead of a salary for him.

Doing something like this they can't even take the property unless it was an issue the property caused.

[GrayStangGT]

That's what Id like to do, Start off and once more income with the shop and responsibility id like to go LLC.
But i'm stuck in an ignorance zone with Sole Proprietor and DBA. Same thing or big difference?

I also don't want to mix my shop taxes with my desk job taxes. I just don't feel comfortable at the moment for some odd reason. I know if I do get insurance checks I need to report on those.

Being a solely owned LLC you will still pay taxes as if you were sole proprietor from what our accountant has told me, but you gain the added insurance of the company being a separate entity if you get sued. Until obamacare add a tax to rental property there was some savings by being able to rent property to yourself.

[sosoe]

So, for Tarrant County I can use this form http://www.tarrantcounty.com/ecounty...corporated.pdf for DBA at the moment, input my info and for as "Business to be conducted in" Select "Sole Proprietorship" ?

[GrayStangGT]

I'm no expert, but unless you have created a legal entity for the business you are a sole proprietor.

[sosoe]

I'm no expert, but unless you have created a legal entity for the business you are a sole proprietor.

Hmm, Ok Thanks though!

But seems as this should be my form.

https://ccrecordse.tarrantcountytx.gov/AssumedNames/ASNApplication.aspx?lang=ENU