[OnTheWayUp]

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I do web design and maintenance for a couple of small businesses around here, and I want to do work under a business name, we will use crackerjack web design as a example.

Will I have to form a llc for this name or will it be smarter to do a DBA?
I want them to be able to pay to the business and not my name through invoices, most clients just write me a check with my name on it, but I want to become more professional and have my own logo, letterheads, etc.

Not looking for legal advice, only suggestions or what you have done in the past.

Thanks

[OnTheWayUp]

no designers out there?

[malahverdian]

If you don't have any employees, just open a business checking account with your SSN under "CrackerJack Design" and file for a sole proprietorship

[JLeezer]

Honestly, if you are doing a relatively smaller design jobs without much room for typographical errors that could cost the company money/sales/credibility/etc, I'd just file a dba (doing business as/ficticious name/assumed name) with your state. If you find yourself to be growing or taking on projects that could become riskier, look into an LLC.

PM me if you have questions about how to form either.

[OnTheWayUp]

Originally Posted by malahverdian

If you don't have any employees, just open a business checking account with your SSN under "CrackerJack Design" and file for a sole proprietorship

Does having employees include small outsourcing projects? Some of the development projects are outsourced, does that change anything?

[malahverdian]

As long as you are not withholding taxes for them, and paying them as a consultant or something its fine. I'm not a tax expert, but then I assume you can write off the cost of them as well.

[OnTheWayUp]

Originally Posted by malahverdian

As long as you are not withholding taxes for them, and paying them as a consultant or something its fine. I'm not a tax expert, but then I assume you can write off the cost of them as well.

Thanks malahverdian!

[ASJ]

If you're looking to use any name other than your own, such as Crackerjack Designs, you'll have to file for a Fictitious Name. That is different than a DBA.

You don't have to be an LLC or Incorporated to get a fictitious name, but I recommend that if you're serious about building your company for the long haul, consider setting up the correct legal channels. If you just want to use a fictitious name, but aren't ready for the commitment, you can just go to the bank and use your SSN to open a business account as a sole proprietorship.

I have done both. My current company ASJ Interactive is based off of my name, so I don't need a fictitious name. I have my company incorporated, mainly because of all the tax benefits that come with it. Once your becomes incorporated you get an EIN (employer ID number) which is like a SSN of your company. That is what all my companies taxes, bank, etc uses, rather than my personal SSN.

I hope this helps.

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Originally Posted by malahverdian

If you don't have any employees, just open a business checking account with your SSN under "CrackerJack Design" and file for a sole proprietorship

This is not attacking the poster personally, but this information is incorrect.

Regardless of whether you have employees or not, if you're operating under a name other than your own, you need to file a DBA or fictitious name (same thing, just called different things in different states).

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Originally Posted by OnTheWayUp

Does having employees include small outsourcing projects? Some of the development projects are outsourced, does that change anything?

Make sure you're very clear about whether they are employees or independent contractors. In your situation, it is likely advantageous to use independent contractors rather than employees for a number of reasons. However, you have to be very careful, as certain actions on your part can get them classified as employees when you want them to be independent contractors. We're in the same boat, outsourcing projects to independent contractors.

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Originally Posted by ASJ

If you're looking to use any name other than your own, such as Crackerjack Designs, you'll have to file for a Fictitious Name. That is different than a DBA.

You don't have to be an LLC or Incorporated to get a fictitious name, but I recommend that if you're serious about building your company for the long haul, consider setting up the correct legal channels. If you just want to use a fictitious name, but aren't ready for the commitment, you can just go to the bank and use your SSN to open a business account as a sole proprietorship.

I have done both. My current company ASJ Interactive is based off of my name, so I don't need a fictitious name. I have my company incorporated, mainly because of all the tax benefits that come with it. Once your becomes incorporated you get an EIN (employer ID number) which is like a SSN of your company. That is what all my companies taxes, bank, etc uses, rather than my personal SSN.

I hope this helps.

This is not attacking the poster personally, but this information is incorrect.

There is no difference between a DBA and a fictitious name. They are the same thing.

Also, I'd be very careful about not filing one. For example, I believe most states have laws that you don't need to file one ONLY if your last name appears in the name of the company, which means that ASJ Interactive would be operated illegally if it were a sole proprietorship with no DBA. Check your state's laws regarding such.

Finally, you don't need to be incorporated to get an EIN. You can apply for one as a sole proprietorship.

Hope this all helps a little bit more.