Hi,

I am starting up a new business doing local internet marketing.  I am going to apply for a fictitious business name and business license soon.  However, I'm looking for some advice on how to structure things.  The complication is that I am also beginning an unrelated online business.

Should I create a DBA for both new businesses, along with a biz license for each and separate banking?

Another way I thought of structuring it would be to use a sort of overarching company name.  In that scenario, I would create a "company" DBA with an associated biz license and banking.  I would then operate 2 different businesses under that company name.  In that scenario would I create a DBA for each of the unique businesses in addition to the DBA for the "company" name?

I'm not at the point where I would be creating a corp. or LLC so I will operate these as a sole proprietor.  Any suggestions are greatly appreciated.  Thank you,

Ethan

Ethan, you should avoid operating any of your businesses as a sole proprietor. Dabbling with different DBAs and separate banking will do nothing when it comes to limiting your exposure to potential liabilities and protecting your personal assets.

Incorporating your business either as a C-Corp, S-Corp, or LLC is rather inexpensive and even if you don’t generate revenues right away, the company (if a C-Corp) can claim initial losses as tax credits and offset them against future tax liabilities. If you operate as an S-Corp (except for if you elect to be taxed as a C-Corp) or LLC, initial losses of your company will automatically reduce your personal taxable income.

So except for the costs of properly forming these entities, filing an annual report with the Department of State (Division of Corporations) in your state, and filing separate tax or information returns with your local and federal tax authority, there really isn’t any downside to incorporating.

Moreover, if you later decide to incorporate any of these businesses because you either require funding or need to take on a partner, doing so will be much more complex and cost intensive than if you handle these things separately from the get go.

So, my answer to your question is to research available corporate structures, may be consult with a CPA or attorney and incorporate both businesses.

If you need any help with this, please feel free to send me a PM and I will try to give you a few more pointers.

I hope this helps.

Mark

You should consult with a CPA or attorneyFor your issue !