Type of business DBA or LLC

R

RiKo

New member
Hey Everyone, im looking to do auto detailing part time and want to do everything by the book.
So far DBA seems like the easy way to go considering i will be insured on my work. LLC protects personal assets but a lil pricier to file.
Please help me choose which way to go. i will be doing all the work by myself to start off with, maybe get a helper later on if i go full time on this.
Thanks a million
 
Single member LLCs with no employees besides yourself are considered a disregarded entity to the IRS and all income is reported on ones personal taxes. So it's treated as a sole proprietorship by the IRS

only cost me $50 in Michigan for LLC
 
ShaneB said:
Single member LLCs with no employees besides yourself are considered a disregarded entity to the IRS and all income is reported on ones personal taxes. So it's treated as a sole proprietorship by the IRS

only cost me $50 in Michigan for LLC
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If I recall correctly, CT had a minimum filing for the entity, not just pass thru
 
LLC. File an S-Corp election. Pay yourself some kind of small salary and the rest passes through on K-1. The extra cost of the LLC will be worth it...I don't think a DBA puts anything between the business and you personally (but I could be wrong). On the flip side, unless you think you will have at least $50k+ in revenue, the hassle of an LLC might not be worth it (quarterly IRS filings, quarterly state unemployment filings, monthly withholding filings, etc.). I do my own quickbooks because my business (non-detailing) is low transactional, so mainly just rent, utilities and payroll. My annual accountant costs have been around $140/yr since I do my own books and just send the QB file to him for the tax return at the end of the year.

All that being said, the best advice I can give you is to talk to an accountant. Hopefully you have a friend of family member that is a CPA and would be willing to discuss over a couple beers. I probably have saved $100's by just taking my accountant out for a couple beers when I wanted to discuss something.
 
MooreImpressive said:
don't know why an LLC would cost much more, but I don't know from state to state. in Indiana it costs around $85 to get an LLC license.
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When i met with a local CPA here in TX.... $1,000 was the price given to me to get an LLC going. i've also seen around $300 as well, so it's weird and something i'm still looking into.
 
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