I want to get a business name for scrapping and build a clientele list.Does anybody know or got advice on what to get, a dba or llc?
- Dba or llc
New Guy
I want to get a business name for scrapping and build a clientele list.Does anybody know or got advice on what to get, a dba or llc?
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Each has its advantages and disadvantages. You'll need to decide for yourself.
People may laugh at me, but that's ok. I laugh all the way to the bank.
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A DBA isn't the same as a business license, it's just a document stating that you are "Doing Business As" you still need a business license.
The question I think you are trying to ask is if you should just get a small business license in your state/county/city, an LLC wich is a "limited liability corporation" or a C-Corp.
I have a C-Corp with the name Noble Business Concepts, and have filed DBAs for other names like "Noble Metal Clay" "Noble MetalWorks" "Noble Metal Recycling" etc. I do this so that I can operate as a c-corp, but still run different businesses under different names legally. This compartmentalizes each from the other while still retaining the benefits of a c-corp.
There are many many ways to structure a business. If I were you, I would first define what it is your goals are, what you are attempting to achieve. Get those all down on paper. Matter of fact, you would be even better served if you used a software program to write a business plan, it will help you organize your thoughts and in the end your business plan will decide many things for you, naturally. Then sign up for the SBAs SCORE program, and talk with someone who has been in the type of business you are seeking to enter into yourself, and ask these same questions, show them your business plan, they will have good solid advice for you to follow. While you are taking advantage of that program, check out the other programs the SBA offers.
If you have any family members that have ever started a business they are a good source of information. Some states, even counties and cities have laws in place which make one type of corporation better than another. For example in Delaware, all corporate information held by the state is private, no other state allows this. This is why corporations like AT&T have offices there, so they can be incorporated there and gain that benefit. Others states like Nevada are better about taxes. It all depends on where you live, where you intend doing business, and how much business you will be doing.
Scott
At the heart of science is an essential balance between two seemingly contradictory attitudes--an openness to new ideas, no matter how bizarre or counterintuitive they may be, and the most ruthless skeptical scrutiny of all ideas, old and new. This is how deep truths are winnowed from deep nonsense. -- Carl Sagan
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Not sure how it works in your locality, but where I am a dba will not offer name/brand protection, except in the County where my business is located. I had an LLC and thought about adding my company to it as a DBA, but didn't want others infringing on my name. I also didn't want to set up a 2nd LLC and have to deal with more paperwork/taxes, etc. Instead, I morphed the two companies together and decided to drop the name on the original LLC and change it to my new one (Ecycle Atlanta, LLC). It was by far the least costly way to go and also protects my name and ultimately my brand throughout the State and possibly the nation.
A business license is a completely separate thing that is handled through the County where you are doing business.
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Generally you CAN protect a dba if it is registered with the state...all a dba indicates that you are "doing business as" whatever name....an alias. I have several dba's under my llc for my different website businesses ect. They all flow back to the same llc.
There are 3 types of business entities...sole proprietor (like charkes jo es scrapping), partnership (2 or more partners in a business...stay away from these as they can be ugly to get out of), and corporation (under this there are a regular c-corp, s-corp, and in most states the llc or limited liability corporation). If you do not know much about these, go to your states corporation website (google <state name> and corporation)..you can find out what is available in your state and really some info about each entity...or google that after. In general, if you are a single or small business...llc is the best...limits some liability and easiest to file income taxes (mine flows directly to me unlike a c-corp where you pay corp taxes and then taxes on your income you draw from it). Best option if really confused...talk to your tax person or possibly a lawyer (buy 30 min of their time). I filed my own llc paperwork and it is not that hard...dont pay someone like $500-1000 (ie a lawyer to do it if you can help it...your states requirements may vary).
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