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I searched and searched

Posted: July 14th, 2010, 8:09 pm
by SIAUTOGLASS
i cant find anything that really hit the nail on the for my question.... how are you set up llc corp sole with dba?

Re: I searched and searched

Posted: July 15th, 2010, 8:21 am
by mrchips
I suggest you look at forming an LLC

Here's why:
PROTECTION: An LLC has ALL of the protection of a C-Corp but not the double taxation (In a C-Corp your Corp pays "Corp" tax and you pay "employee" tax) OUCH!
TAXATION: An LLC is a little like an S-Corp in that the income is passed to you directly, so you only pay tax once! (advantage goes to S-Corp over C-Corp for that reason alone)
LESS PAPERWORK: An LLC is better than an S-Corp, because in an S-Corp (and C-Corp) you have to file more reports, quarterly etc. NOT So in an LLC, which only requires annual updates.

Now having said all that why would any one want a Corporation?.........You would want to consider a corporation structure if you have plans to take your company "public" in the future or you want to sell "shares". And, if that is the case, then you will have to put up with all the extra reporting, taxing, etc........but you should look into the fact that you can "add new members" to an LLC if you want to take on investors, but don't foresee wanting to go "public"

Why not a Sole Proprietorship?
Liability mostly...........as a sole proprietor, you will be exposed to more liability, but if you have proper insurance (which you should anyway), then the risk is less. In an LLC, you have one more "LAYER" of protection against any claims, false or otherwise. Many Techs do choose a sole proprietorship with a dba, mainly because it's easy and cheap to set up. (you can find LLC setup docs on the web for next to nothing)

These are a few ideas for you to think about. In no way am I an attorney, so good luck!