[pickleweed]

Hi Everyone,

I posted a question about DBA vs LLC way back in October of last year because I wasn't sure which one to go with. Now that I have a better idea of the two, I have another question. Actually, I am planning a start up my own business -- designing custom invitations (specializing in weddings) and announcements. And I will be working out of my home, and I will set up a website for the business. The website will be my store for my services. With this in mind, would it be more logical to register the business as a DBA first and as business starts to pick up, then register for a LLC? Or should I register for a LLC right off the bat? Which is better? Sorry guys, I am a super novice at all this.

Thanks!

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What is your goal?

A DBA is merely a name you're permitted by law under which to operate. An LLC is an entirely different legal entity which limits your liability.

You can also have a DBA for your LLC. (Not to confuse you any more.)

[pickleweed]

Originally Posted by CLICK ME!

What is your goal?

A DBA is merely a name you're permitted by law under which to operate. An LLC is an entirely different legal entity which limits your liability.

You can also have a DBA for your LLC. (Not to confuse you any more.)

Thanks for your reply. My main goal is to be able to work under a business other than my own personal name. And since I will not be operating my services/business in a physical store, I am not worried about people slipping in my store and getting sued. I will be working out of my studio at home. So in that essence, will be a DBA suffice? The only reason why I keep debating between the two is because I read somewhere that DBAs and LLCs get taxed differently and under a DBA, I will not be able to write off my business expenses and supplies, etc. Is this true?

[jasaunders]

No, this is not true. You heard wrong information.
If your sole purpose is to just use a business name, use a DBA. No reason to go through the headache of filing LLC paperwork and paying higher fees if you have no need to limit liability and your the only investor in the business.

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Originally Posted by pickleweed

Thanks for your reply. My main goal is to be able to work under a business other than my own personal name. And since I will not be operating my services/business in a physical store, I am not worried about people slipping in my store and getting sued. I will be working out of my studio at home. So in that essence, will be a DBA suffice? The only reason why I keep debating between the two is because I read somewhere that DBAs and LLCs get taxed differently and under a DBA, I will not be able to write off my business expenses and supplies, etc. Is this true?

Liability is not just about someone slipping your store. It's about debts incurred, contracts entered into, etc.

None of this is "legal advice," but if you're incurring expenses for your business that are "ordinary and necessary," they'll be deductible, regardless of your entity of choice.

I prefer an LLC always because the benefits far outweigh the costs.