Forums: Discussions for entrepreneurs and small business.

Ok currently I`m trying to secure funds for my home business. Its an online venture on eBay plus a local venture. All run out of my home. Currently I`m a DBA. Now I do not intend to hire anyone to work for me because this is primarily a one man band. So the question is, should I still be a DBA or should I incorporate? Is it easier, tax wise to be a DBA or do you get more benefits for being an LLC or Inc?

If you are DBA you are already incorporated, Definition of DBA

A "DBA", also known as an "assumed name", is typically completed by making a filing at the county level where the business is located. This filing does not change the official name of the corporation; however, it allows the company to use additional names.
www.inc-it-now.com/incorporation-glossary.htm

Not sure what you meant to say with that but I`d assume you intended to say you do not have a corporation set up. As for how to incorporate The question of whether to use an LLC, C or S corp was pretty well answered here. It also covers a lot of other stuff and it gives you a pretty good idea of what may be best for you.

In my quest to get funds for the business, I`ve encountered alot of lenders ranging from business cash advances to business loans saying that they only work with those who are either LLC or Inc. Sole Proprietorship is frowned upon I guess. Thanks for the info and the link.

Unless there are other reasons that would cause a corporation to make more sense to you, there are very few reasons NOT to form a LLC.  You are taxed the same as a sole proprietorship, have minimal filing and other costs, and obtain protection from any personal liability.

To be clear, when you register a fictitious name, you are not "incorporated."  You are merely telling your state that you are operating a business under a fictitious name - no more, no less. You are not creating a separate business entity by registering a fictitious name alone.

Lastly, you typically will not see any tax benefits by setting up a corporation, but you should speak with both a tax and legal advisor to best determine what entity makes the most sense in your particular situation.  There is no one size fits all.


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Pepperlegal is right; having a DBA makes you a sole proprietor doing business under an assumed name. It does not make you a corporation.

Incorporating can provide tax benefits, but generally not until you`re making some serious bucks.

Before forming an LLC, I would be sure though to check into your state`s tax laws. Some states (CA for instance) charge an entity-level tax. (Meaning you`re taxed like an SP for Federal purposes, but not for state purposes.)

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Accounting Made Simple | Sole Proprietor Tax Guide

Yes, DBA "Doing Business As" does not incorporate you, should`ve made that clear. When I said "you are already incorporated" I was thinking you could already be incorporated as XYZ and doing business as ABC.

I don`t know. I like where everythings at now. I`m a sole proprietorship, I have a tax ID and its easy to file at the end of the year. Maybe when my business actually grows more, I`ll consider changing but not right now.

Hi, I have a business that is set up as a corpration, but I decided to desolve it.   Does it automatice become a sole proprietorship?  or do I have to file as a sole proprietorship?  Also, what would be better, as an LLC or Sole Proprietorship?