DBA vs Inc vs LLC?

[provodka]

Can someone tell me the basic difference between setting up a small company as a DBA versus LLC versus LLC? I want to open a small e commerce business and I'm not sure which to do.

[freetraff]

How do you plan to arrange the payments? A lot will depend upon financial flows as they influence the structure.

Without this info I can say that LLC can work fine for you, but the more we know, the better.

And where would you prefer to be registered (what jurisdiction)

[provodka]

I live in NJ and will be setting up the company in my rented apartment. I will be using Paypal for receiving my payments (Visa, MC, Discover). I'm basically in the planning stages. I have my product and my friend is a web designer....so now I'm just trying to figure out all the legal and tax issues in regards to setting up the company and what the rules are for collecting tax and things like that.. Any advice on what to do is MUCH appreciated!

[biz1]

Hey where in NJ do you live, I live in NJ and I'm also starting a company and I have formed an LLC.

[Saadh]

Cool guys, I live near Princeton in New Jersey, also trying to start up an incorporated business soon.

[youngmoneyblog]

I will be in the area this weekend, my friends go to rutgers.

You should incorporate first... either as a C-Corp, S-Corp, or LLC. I chose to do an S-Corp as it fit best with my business plans. You may choose an LLC if you like... it provides more flexibility. Go to wikipedia and read up about both.

DBA is "doing business as." I had to file a fictituous name in Florida for the DBA. Basically, I'm incorporated as ABC, Inc. But the name of my business is Business Name (what my consumers see). The state just wants to know who is doing business under what name. THe ABC, Inc. corporate entity is doing business as Business Name.

check out my blog if you want to follow the progress of my business venture

[biz1]

Cool guys, I live near Princeton in New Jersey, also trying to start up an incorporated business soon.

Saadh, were you the one that wanted to form an Inc or LLC before you were 18?

[Saadh]

Saadh, were you the one that wanted to form an Inc or LLC before you were 18?

Yeah I was and still want to.

[biz1]

In New Jersey I don't think you can. I'm not sure what you can do. You may possibly be able to form an LLP and have a partner who is 18 or older but I'm not sure. You may want to consult someone, try score.org

[Saadh]

In New Jersey I don't think you can. I'm not sure what you can do. You may possibly be able to form an LLP and have a partner who is 18 or older but I'm not sure. You may want to consult someone, try score.org

Thanks biz1. I can definitely find someone who is at least 18 to be my parnter for the company until I turn 18. I'll need to find out if I can.

[biz1]

I;m not totally sure if it is possible but I would look into it.

[E-Helpdesk]

An LLC will protect your personal assets in the event that something happens to your business. In other words, if you run into financial trouble, they can liquidate anything related to your business, but your home and personal belongings are still safe.

If you are starting out as a small business, this is the most inexpensive structure to get started with. You don't need a lawyer to get started, and usually it is as simple as a single form + fee. Any business you setup should at least be an LLC. You are risking a lot as a sole proprietor.

[Saadh]

Can you upgrade from LLC to S-corp easily?

[paul2145r]

Why would you want to? An LLC is about the most flexible and forward-thinking business model I have seen. The only stipulation is that it is not taxed as a seperate entity, meaning that you will have to file and profits or losses on your personal taxes (meaning that if you are too young to file, you are too young to own).

[youngmoneyblog]

an LLC has both elements of a C-corp and S-corp

S-corp fit my business needs most