Regarding formation of company...

[es80]

I was thinking of forming a corporation and was looking for everyone's input.

This article @ About.com stated various benefit of doing DBA and was thinking perhaps at this stage of my entrepreneur career, (a starter) it would be more cost effective to start off with DBA than going gungho with S/C corporation stuff.

The article did have an interesting point regarding creating an umbrella S corporation with generic name and and then file an assumed name for each website with different names that I create under that corporation.

How is everyone accepting their payment from your site? Are you using personal account? Or have you setup a business account seperately? If you've setup a business account... have you decided to use DBA's business account?

Thanks ahead for your input...

[mikeanders87]

Depending upon what state you are in, you should definitely look at an LLC too. In most cases, an LLC is easier to form, and there are less corporate formalities to follow. I formed an LLC for my company, Broadgate Business Financial LLC, here in Missouri. You should definitely talk to a qualified attorney before making this decision though.

[es80]

Interesting... I had a tough choice between forming S corp vs. LLC. It appears unless I expect to start earning lots of money(and therefore the potential to save money on employment tax is really high), it would be better/more flexible to go with LLC.

I suppose forming DBA for each specific site under LLC would be inefficient. So I can just start with my LLC for now and accept payment under that name.

Thank you Mikeanders for your suggestion. Please let me know if you disagree with anything I've said.

[mikeanders87]

I've always have thought that is looks better to have the LLC attached to your name rather than DBA. For one with the DBA, there is the potential that some can sue your for business misdoings, and your finances are completely at stake. Not to say that that the LLC, or corporation for that matter, is impenetrable (it definitely isn't), but it does add another layer of legal protection.

I agree, the only time when an S corporation is better is when you are a small businesses earning alot. But still remember there are little extras that the LLC gives that might be worth it. For example, in my business I would probably save $2000 in taxes if I were an S Corp, but I just don't do it. For one in my state of Missouri, corporation have filing deadlines to meet and yearly incorporation fees. Whereas, an LLC is formed without any future filings. This is different from California where I think it actually costs more to be an LLC than a corporation.

Like I said, I'm definitely not an attorney so please don't take this as professional legal advice. This is simply what I have garnered from experience and studies. I wish you the best though. Visit my website too if you wanna check it out. www.broadgatebusinessfinancial.com.

[buynick]

I formed an LLC and it was very easy and lots cheaper than the others. You should research each and find out what exactly you would benefit from each. I believe the tax stuff is more difficult with the S corp than LLC. Also, be aware of the "corporate veil", which means that you need a seperate business checking account, seperate usage of equipment, etc, in order to be fully protected from your personal property and liability.

[Stockripper71]

also to note about the "corporate veil", if you work out of you home it wouldn't be protected unless you are a renter (your name isn't on the deed).

[paul2145r]

LLC Definately..

I don't recommend anything other than an LLC to any of my clients. There are a few exceptions, of course, such as if you plan on having 35+ managers, or plan on offering stock. LLC's are cheaper, more flexible, and much easier to work with, plus they protect your personal assets.