# File LLC and DBA? Necessary?



## comingup (Sep 21, 2007)

Hello, Thanks for all who are looking at this right now and who can provide some help.

I'm from the USA and I'm looking to start my venture...Now I've been getting all crazy about this DBA and LLC stuff. Should I do both? Or do I just need one...Is an LLC the same as filing a DBA?

In Ohio btw.

Thanks a lot for anyone who can help the cause.


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## sunnydayz (Jun 22, 2007)

The DBA is the filing of the name of your business, and making it public that you are doing business under that name. 

As far as the LLC, it really depends on how you are operating your business. If you plan to run it yourself without any employees, it is much easier to file your business as a sole proprietor. With an LLC you will have alot more guidelines to follow and it is much more complicated then an sole proprietor. If you plan on hiring employees then you will need the LLC.

The DBA is the business name filing, and the LLC or Sole Proprietor, is what you file with your state showing you are doing business and paying taxes on that said business. I hope that makes it more understandable. So yes you do need the DBA and either the LLC or Sole proprietorship.

I am not exactly sure of Ohio law, but I know this is the way it works in CA.

The easiest way to find out the exact requirements though for your state, is to go to their website and look under small business requirements. Also you need to check your city as well, as most will require a seperate city license that you will need to operate within that city.

Hope this helps some


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## pwapparel (Feb 16, 2007)

You don't need to do anything to operate as a sole proprietor, simply use your personal SSN (or FEIN if you want to keep your SSN private) on any business papers.

LLC stands for Limited Liability Corporation. It acts in the same way as a sole proprietor, except for the fact that you are creating a separate legal entity. If you are a sole-prop and your company gets sued, the person can take your house, cars, or other personal valuable to pay the fines. LLC on the other hand, you are only liable for the assets that are in the businesses name. If the company only has $25,000 in assets and a judge awards settlement for $100,000 all they can get is the $25,000 and can't dip into your personal property to recover.

Also you DO NOT need an LLC if you have employees. Many people (over 75%) of the businesses in America are sole-proprietors. DBA is a completely different thing from Sole-Prop or LLC. DBA is used by all forms of businesses. Your bank will probably require you to have a DBA to accept checks in your businesses name. No one will ever require you to organize as an LLC. Both sole-pro and LLC have flow-through taxing and your profits are taxable as personal income.

Hopefully this helps you a bit. *Good luck!*


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## comingup (Sep 21, 2007)

Ok the thoughts are getting a little clearer. Basically to save my ***, An LLC would be great. But if your a guy like me that's going all in and have nothing to lose, I guess if you get sued, your going to have a nice hoopty as a ride and nothing...

But I think in the long run filing for BOTH D.B.A. and LLC in the long run would be the best idea, however I am going to be running solo for a while, I'd say 1-2, maybe 3 years by myself but I'd rather have the coverage of the LLC, Right?

Thanks for your help and anyone who has other statements that could help me out would be great...


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## sunnydayz (Jun 22, 2007)

Ok I made a statement incorrectly above. A sole proprietor is only one owner of the company, you are able to have employees, but you are also the sole one responsible for paying into the tax deductions for those employees, where as if you have no employees it is much more simple, because as long as you have no employees, you can file your schedule C with your personal taxes at the end of the tax year all together. 

If you are a LLC, you then have to file separately for the company. You do need to have a LLC if you ever plan on having any partners in your company.

Of course no matter what you file as, you will also be responsible for your state taxes separately of merchandise that you sell. Mine usually comes due in July and I file it thru the franchise tax board.

Sorry for the confusion


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## comingup (Sep 21, 2007)

Thanks sunnydayz and PWA


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## rrc62 (Jun 2, 2007)

A DBA is not necessary if you set up an LLC. All a DBA does is state in a legal way that "Joe Citizen" is doing business as "Joe's Printing". Joe Citizen is an individual, not a business entity. The DBA establishes him as a business entity. If Joe citizen wanted to operate under his name and not a business name, nothing is required, but that doesn't look very professional as customers would write checks to "Joe Citizen" and not a real business name. The LLC is a business entity in itself and looked at as such by the IRS. You don't need a DBA to tell the IRS that Joe Citizen is doing business as Joe's Printing, LLC. 

The only thing you really NEED to start selling product is whatever your local government requires, IE. business license, sales tax number, etc. If you want to operate under a business name, you will need to set up the business entity. I have a freind that does over $2M/year as a contractor operating as a sole proprietor under his own name. Although it's perfectly legal, I think anyone grossing that much should be an LLC, S-Corp or C-Corp. I know other who started under their own name and later switched to LLC after the business grew. I've done that myself.


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## rrc62 (Jun 2, 2007)

sunnydayz said:


> You do need to have a LLC if you ever plan on having any partners in your company.


It's advisable, but not required. A simple partnership is all that is required, which is basically just the sole proprietor model applies to multiple owners.


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## lindsayanng (Oct 3, 2008)

> I have a freind that does over $2M/year as a contractor operating as a sole proprietor under his own name. Although it's perfectly legal, I think anyone grossing that much should be an LLC, S-Corp or C-Corp. I know other who started under their own name and later switched to LLC after the business grew. I've done that myself.


Thats not really true. My company has just grossed $5 (not a t-shirt biz though) and just over the past year we changed to an S-Corp. As long as you are shown as a business, you could do anything you want. however, companies that sell that much, have more liability, and SHOULD protect themselves over their business.. 

I have owned 3 businesses, one that is VERY successfull, the one NEW one (photography) and one that is on hold because of the photography business. Even though the one on hold isnt making ANY money and just costing money, i still filed as an LLC. It just makes sense.. Unless you are a sub-contractor and doing MOST of your business through other people's business, then an LLC is the way to go..


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## merryprankster (Jul 6, 2009)

Starting out as a sole-proprietor and evolving into an LLC seems to be the best idea. However if the t-shirts are offensive, is it advisable to immediately go under an LLC? Thanks.


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## Atakteo (Jul 8, 2009)

off the bat i decided to go LLC, why? because i figure in a recession like this living in SOCAL, people now a days first thing on their mind are LAW SUITS and i dont want to take any chances of losing my personal assets and put my family lives at risk through my business..


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