Can you get paid this way?

13 years ago

I may be wrong, but my basic understanding is that you can do this if you do not represent yourself as a different business name. For example, if your name is Jon Doe you could call it Jon Doe SEO.

It is also not that expensive to pick up a DBA. I would suggest looking up your local county court office and look into getting a DBA, it is very easy.

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Anthem40 13 years ago

You can get paid this way, yes.

But you are opening yourself up to liabilities. And some clients will be sketched out by it. Would you spend $5,000 in a year on someone who doesn't have a business name?

If you go to the Secretary of State website for your state, you can register an LLC and trade name for ~$50. If you are serious about getting a real business going, it is a no brainer as far as risk mitigation goes.

Generally the bank you are with now will be happy to help you a biz account as well. You would just need your registration number or sometimes only your social security number.
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Aaron Doud

13 years ago

You can of course as others have mentioned but it leaves a bit to be desired.

You can get a DBA in most areas for $50 or less than get a commercial banking account to take the checks. 3 hours and $100 max to get it done for both.

Then if the business works get an LLC early next year.

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tinknocker

13 years ago

I would do a DBA to start out. It's easy and it has a professional appearance and being a sole proprietor is a lot cheaper with less hassle than a LLC.

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DaniMc

13 years ago

Originally Posted by tinknocker

I would do a DBA to start out. It's easy and it has a professional appearance and being a sole proprietor is a lot cheaper with less hassle than a LLC.

How so? You file them at the same place. For me, I think a DBA is $30 and LLC is $50.

You take the paper to a bank and open an account. Presto - you are done.

I don't know why anyone would operate as a sole proprietor. It is so easy to protect yourself.

The taxes aren't even different. LLC taxes just run through your personal tax return like normal.

Just go do it. You want to do the MASSIVE amount of work it takes to start and run a business, but the extra $20 for an LLC is too much? :confused:

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tinknocker

13 years ago

Originally Posted by Dan McCoy

How so? You file them at the same place. For me, I think a DBA is $30 and LLC is $50.

You take the paper to a bank and open an account. Presto - you are done.

I don't know why anyone would operate as a sole proprietor. It is so easy to protect yourself.

The taxes aren't even different. LLC taxes just run through your personal tax return like normal.

Just go do it. You want to do the MASSIVE amount of work it takes to start and run a business, but the extra $20 for an LLC is too much? :confused:

Did you read what the OP said? I was basically reiterating what Aaron said.
Why incur all the hassle that comes along with an LLC if it doesn't work out for him.

If it does work out he can just file the LLC when he needs to.

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DaniMc

13 years ago

Originally Posted by tinknocker

Did you read what the OP said? I was basically reiterating what Aaron said.
Why incur all the hassle that comes along with an LLC if it doesn't work out for him.

If it does work out he can just file the LLC when he needs to.

I absolutely read everything he said. I am contending with your idea that an LLC is a "hassle" or a lot more expensive.

Literally - You can have a new LLC, with an EIN number from the IRS, in 10 minutes.

Filing a DBA takes - *DRUM ROLL* - 10 minutes.

LLC gives you asset protection and a legit business. It isn't more difficult. There aren't extra papers to file at tax time.

Starting as a DBA sole proprietor presents even MORE challenges because you then have to actually convert the entity to LLC, change all your bank account info, modify all your business billing subscriptions etc...

Just do the LLC. It's LESS of a hassle. I start new LLC's for every single thing I do. So easy, a caveman could do it.

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Aaron Doud

13 years ago

Originally Posted by Dan McCoy

I absolutely read everything he said. I am contending with your idea that an LLC is a "hassle" or a lot more expensive.

Literally - You can have a new LLC, with an EIN number from the IRS, in 10 minutes.

Filing a DBA takes - *DRUM ROLL* - 10 minutes.

Depends on the state but an LLC in many states will be hundreds of dollars more and will equal more paperwork. If you are 100% sure of the business I see doing it up front but IMO businesses should be tested as DBAs or under anothor LLC you already have (basically a DBA but for the LLC and not you personally).

LLC gives you asset protection and a legit business. It isn't more difficult. There aren't extra papers to file at tax time.

This is false in most states there are more papers both at tax time and at other times. And LLC protection isn't always foolproof if you are a one man operation. Insurance is always the safest way to protect a business LLC or not.

Read this for more info on piercing the veil and why small closely held companies are most likely to have it happen. Basically in all honest the people here and the businesses here would have little true protection in an LLC since the LLC would be a pass-through one owner type.
http://www.nolo.com/legal-encycloped...eil-33006.html

Starting as a DBA sole proprietor presents even MORE challenges because you then have to actually convert the entity to LLC, change all your bank account info, modify all your business billing subscriptions etc...

None of that is hard to do. Hell I know people who have had LLCs in new states eat LLCs in old states. The lawyers take care of it all. If the business is successful it is merely a cost of doing business. And if not successful in many states it will cost more to end an LLC vs DBA a lot more.

Just do the LLC. It's LESS of a hassle. I start new LLC's for every single thing I do. So easy, a caveman could do it.

I have no idea which state you are in but you should mention it as warriors in that state should follow your lead.

BTW if anyone is curious on IL here is the official list of forms and costs. Living in IL I think it will be clear why I would recommend people do DBA to test vs. LLC.
Limited Liability Company Publications/Forms
And NOLO Article
http://www.nolo.com/legal-encycloped...llc-32092.html

In my county the cost of a DBA is $5 plus the cost of the newspaper add which if i remember right was well under $50 all together.

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gasman

13 years ago

Originally Posted by Aaron Doud

Depends on the state but an LLC in many states will be hundreds of dollars more and will equal more paperwork. If you are 100% sure of the business I see doing it up front but IMO businesses should be tested as DBAs or under anothor LLC you already have (basically a DBA but for the LLC and not you personally).

This is false in most states there are more papers both at tax time and at other times. And LLC protection isn't always foolproof if you are a one man operation. Insurance is always the safest way to protect a business LLC or not.

Read this for more info on piercing the veil and why small closely held companies are most likely to have it happen. Basically in all honest the people here and the businesses here would have little true protection in an LLC since the LLC would be a pass-through one owner type.
Piercing the Corporate Veil: When LLCs and Corporations May be at Risk | Nolo.com

None of that is hard to do. Hell I know people who have had LLCs in new states eat LLCs in old states. The lawyers take care of it all. If the business is successful it is merely a cost of doing business. And if not successful in many states it will cost more to end an LLC vs DBA a lot more.

I have no idea which state you are in but you should mention it as warriors in that state should follow your lead.

BTW if anyone is curious on IL here is the official list of forms and costs. Living in IL I think it will be clear why I would recommend people do DBA to test vs. LLC.
Limited Liability Company Publications/Forms
And NOLO Article
How to Form an LLC in Illinois | Nolo.com

In my county the cost of a DBA is $5 plus the cost of the newspaper add which if i remember right was well under $50 all together.

I actually live in IL

Thank you for the information

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Matt Lee

13 years ago

Not only do you open yourself up to liablility personally, I think it looks bad to have clients make the check out to you personally instead of a business name. The DBA thing as Aaron mentioned would be an alternative.

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Samuel Adams

13 years ago

Couldn't you just use Paypal? You could invoice your clients via email and have them pay before doing the job. It would be more impressive if they paid via credit/debit card rather than having to write a check anyway.

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davehayes

13 years ago

I agree with Anthem, you are leaving yourself a bit wide open, personally I wouldn't do business with someone who didn' have a business name, even if was only their name.services or similar.

Applied education is the difference

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Climb Online

13 years ago

Some state charge an LLC tax, in California its $800 a year. Make sure to do your research.

If your target market is small family type business, just get the checks in your name, it will not be a problem. if your are going after a more corporate type then get a DBA.

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DaniMc

13 years ago

Wow Illinois fees are crazy! No wonder economies are struggling LOL.

I'm in Colorado. Super easy. $50. All online. Getting an EIN from the IRS is just as easy.

Still if someone is going to be in business - they should have formal organization.

I agree with you that E&O business insurance is a must.

If this person actually has a business, surely they are doing a bit more than "trying" this "one thing." If so - organizing properly is important. Sole Proprietorship really has no tax or legal benefits.

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Aaron Doud

13 years ago

Originally Posted by Dan McCoy

Wow Illinois fees are crazy! No wonder economies are struggling LOL.

I'm in Colorado. Super easy. $50. All online. Getting an EIN from the IRS is just as easy.

Still if someone is going to be in business - they should have formal organization.

I agree with you that E&O business insurance is a must.

If this person actually has a business, surely they are doing a bit more than "trying" this "one thing." If so - organizing properly is important. Sole Proprietorship really has no tax or legal benefits.

Dude i would be all over an LLC for $50.

IL is scary and anti-business. Hell $250 a year just to file? Crazy.

But true on the business. For testing and small side projects DBA as fine. But any real business where you are making real money should be an LLC or Corp depending on which is better in your state. As always ask a lawyer lol

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DaniMc 13 years ago

Originally Posted by Aaron Doud

Dude i would be all over an LLC for $50.

Yeah I use them like Kleenex. Reach a new agreement with another business owner? Let's create an LLC for this campaign.
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- tinknocker 13 years ago
  
  Originally Posted by Dan McCoy
  
  Yeah I use them like Kleenex. Reach a new agreement with another business owner? Let's create an LLC for this campaign.
  
  It's hundreds in my state too which is not business friendly (#49) in the country and similar to IL....I hope you could see where I was coming from when a lot of us are not in a business friendly state.
  
  I agree, if your making money then the smart move would be an LLC in any state.
  
  Thanks
  
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