Doing Business As?

HybridCreations

HybridCreations

Well-known member
Sorry if this has come up before (I searched to no avail), but I'm trying to find out the benefits of registering my "company" as a DBA. Does it allow me to write off equipment that I buy for the business? If so, how about if I bought the equipment first and then register as DBA? Any other benefits (i.e. Liability, or anything)? Thanks.
-Ryan
 
A DBA is an alternative title for your registered company (ie company registered as General Electric, DBA: GE). You start an LLC, S Corp, etc and then can attach a DBA to that corporation. No effect on taxes, liabillities, etc.
 
Ok, that makes sense. But why would someone JUST register as a DBA. I don't want to go through all the trouble/expense of registering as an LLC or S Corp yet. I don't have steady work yet, and the extra costs/tax forms would kill me. I know I've heard of people simply registering as a DBA so there must be some reason to do so, no?
-Ryan
 
You can just work as an independent contracter. In most states an LLC is a VERY simple and cheap thing to register. Usually like one simple form and a couple hundred bucks (under $300 in WA). As an independent or LLC you will still need to do quarterly reports on your income. Google the chamber of commerce in your state and search there for the forms, it is pretty easy.
 
You can't just register as a DBA and be done with it.

You are either:

Sole Proprietor
LLC
Corporation
Corporation (Small)

John Smith is the Sole Proprietor but he is Doing Business As 'Smith's Plumbing and Pipes'.

Get it?

DBA is usually registered with the County that your city lies in. Contact your local Chamber of Commerce and/or Secreatry of State site.

You will not be just 'done with it' after registering DBA. You will have to deal with the City for Local taxes and forms once a year, The county DBA which is usually every 5 years a fee to DO BUSINESS AS, the State for taxes every Quarter and the Federal Government every Quarter. (Not including Payroll obligations every month).

Disclaimer:

THIS IS THE CALIFORNIA WAY
 
Cool, thanks for the explanations guys. I think I'll hold off on this for now. Tax forms scare the hell outta me, even if you say its not that much.
-Ryan
 
Not having taken any serious business course in college (big mistake), any tax but a 1040 scared the hell out of me too, but it is pretty simple. Quarterly reports are also pretty simple and Quickbooks make it a 5 minute snap (assuming you are doing pretty simple business with no employees). If you are getting into business for the long haul better to learn now when you are small then try and take it all on as your business grows.

Believe me, avoid the future headaches and set it up now. Procrastinating will only make it harder later.

Additionally, being an incorporated business instills confidence in your employers and helps you to come off more professional.

Best
 
In Canada DBA is generally designated as "O/A" for Operating As. This is common when incorporating using a shelf company, also known as a numbered company. Later when you want to have a name the public relates to you add the information with registry to do the O/A.

ie. 1234567 Alberta Ltd. O/A Fred's Video Warehouse

The public and suppliers deal with Fred's Video Warehouse for financial transactions but the government, financial institutions, and legals list 1234567 Alberta Ltd. or the entire 1234567 Alberta Ltd. O/A Fred's Video Warehouse.
 
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