G'day,

I will be accepting credit card for that I am in the application process of gateway/merchant (both from the same company).

While applying, they are asking me for stuff such as DBA, Business Name, Legal Registered Business name and such...

Does that mean to accept credit cards I have to first register my business (Corporation, LLC) with the state I am doing my business from :eek: ?

I don't think you have to incorporate or anything like that, you can just register a DBA name in your state. I am a sole proprietor and it only cost $1 in my state to register my DBA. I think they use that for the merchant name that appears on the customers credit card statement.

Sole proprietor?

What is the difference between Sole proprietor, LLC, INC and Corporation?

Sole Prop, is your self doing business, LLC is Limited Liability Corp. Basically if you do wrong in the company they cant come after personal assests. Inc and Corps are generally use for tax advantages and larger businesses.

A sole proprietorship is a one-person business that is not registered with the state as a corporation or a limited liability company (LLC). You can conduct business under your own name or under a trade name also known as a DBA or a ficticious name. I picked this because it was the easiest and the cost was minimal. If my business grows I will probably go and form a LLC.

davef139 beat me to it. My connection is too slow. :stickout:

So let me get this straight. If I pay more money, my business can get the title of LLC and if I go in bankruptcy they cannot come after my assets as opposed to being a Sole proprietor and losing your personal assets?

Depending on your state there are pros and cons to the business registration you select.

Regardless to the state - a DBA is just a ficticious name. Everything is pass-through to your personal guarantee. Assets, profits, loss, etc.

Incorporating, its like having another you - thats takeing the liability, but its just like a drone. The company itself can build its own credit, but then you do get hit with double taxes because the corporation files its own, then you file it. You can get around then by using an "S" filing. This will make taxes and such pass through.

LLC - Is the wildcard. In some states, its just like a DBA - with just a fancy name. and a little liability coverage. Thats how it is here in Missouri. In other states, it can be just as powerful as having a corporation. This filing is better for equal share partnerships that want to limit their liability to the rest of the world - and themselves.

Start out with a DBA. Its the easiest - as the $ comes and you figure out which one you want, you can register as a Corp or LLC.

So then what is the difference between Inc. and corporation? Arent they the same?

Google can answer 90% of these questions (which really should have been covered in your high school economics class anyway), and those that it can't should be taken to a lawyer and/or corporate accountant in your state before you start making any decisions about what's most appropriate for you. Any mistakes you make can cost you a great deal of money if you don't know what you're doing.

Google can answer 90% of these questions (which really should have been covered in your high school economics class anyway), and those that it can't should be taken to a lawyer and/or corporate accountant in your state before you start making any decisions about what's most appropriate for you. Any mistakes you make can cost you a great deal of money if you don't know what you're doing.
I did go to google, I searched on WHT, I went to wikipedia but no one could give me a clear distinction between Inc. and Corporation.

And I knew what Sole proprietorship and LLC were but I just want to be sure to ask the good folks here at WHT to get some additional insight.

Thats exactly why I am not a business man, lol. But at the same time I realize that these things need to be done because I am spending all this time and effort not to host for a season, say summer like kiddie hosts, and leave. I have been researching the web hosting industry for the past 6 years and I still dont think I'm ready but I need to start somewhere because some things have to come from experience and not your basic knowledge, and thus the questions.

Pardon me if my questions sound obvious (grade school) to you. You may not choose to answer if you do not wish to. :wht:

You do not have to be a DBA or LLC to apply and get a Merchant gateway. At least not with merchantexpress.com. They sign ypu up for Authorize.net gateway. the only thing they require is that you have a SSN if you live in USA or some form of national Identiy card copy if you live abroad.

Nice website.

But the problem is that I've decided not to host billing services on my own server and its best to leave it to the professionals because such data is very critical and even though I am very cautious with any type of data, mishaps happen and losing such data is crucial, so I am planning to go with Fresh Books instead, and one of the merchant/gateway they recommend is www.landmarkmerchant.com and they have the lowest of all the other gateways.

And for their sign up process they are asking for DBA, LLC information https://apply.landmarkmerchant.com:8443/app.aspx

well, simply put your name as DBA and give them your SSN as proof of identity. also ask them if they accept it before you sign up.

Can I put my would-be company's name as DBA? or do I have to register first?

yes, put your future to be (make sure name cleares, try applying with www.LegalZoom.com (http://www.legalzoom.com/legalzip/corporations/corp_procedure.asp?iRefer=1294) - they ar ethe best, we used them too) and put your DBA name on the signup form. If you have no EIN number yet, do NOT use your SSN, just say your DBA is pending. If you use your SSN, make sure they can edit it later.

yes, put your future to be (make sure name cleares, try applying with www.LegalZoom.com (http://www.legalzoom.com/legalzip/corporations/corp_procedure.asp?iRefer=1294) - they ar ethe best, we used them too) and put your DBA name on the signup form. If you have no EIN number yet, do NOT use your SSN, just say your DBA is pending. If you use your SSN, make sure they can edit it later.

This stands a good chance of failing because:

1. The merchant account provider may verify the DBA name with the merchant's bank

2. The merchant's bank may not open an account with a fictitious business name without proof of registration with an appropriate government agency

3. The appropriate government agency may not grant the right to operate under a fictitious business name without some form of paperwork and/or fee. Many require you to publish your intention to operate under a fictitious name in a local newspaper for a set period of time before they will finalize the paperwork and give you a certificate which you can take to the bank.

Like I said, ask a professional in your city. Any advice you get from an internet forum is more than likely not coming from anyone who is familiar with all of the state and county laws which apply to you, especially if said advice is full of spelling errors and AOL chatroom-speak.

You should call the company you are signing up for and ask them these direct questions. They will be more than happy to answer them. Usually, you can put your name in as the Business Name and then the DBA which will appear on the CC statement will have that information (like Selling my Services).

The provider will want to come after someone if there are a lot of chargebacks and they cannot get your money. This is why there is a responsible party.
So then what is the difference between Inc. and corporation? Arent they the same?what is the difference between incorporation and corporation? Why Inc.? (http://www.hianswer.com/corporations/1653-hianswer.html) should help you out there.

You should call the company you are signing up for and ask them these direct questions. They will be more than happy to answer them. Usually, you can put your name in as the Business Name and then the DBA which will appear on the CC statement will have that information (like Selling my Services).

The provider will want to come after someone if there are a lot of chargebacks and they cannot get your money. This is why there is a responsible party.
what is the difference between incorporation and corporation? Why Inc.? (http://www.hianswer.com/corporations/1653-hianswer.html) should help you out there.
Thank you very much corey. Now I understand, incorporation is the process and Corporation is the actual title.

This stands a good chance of failing because:

1. The merchant account provider may verify the DBA name with the merchant's bank

2. The merchant's bank may not open an account with a fictitious business name without proof of registration with an appropriate government agency

3. The appropriate government agency may not grant the right to operate under a fictitious business name without some form of paperwork and/or fee. Many require you to publish your intention to operate under a fictitious name in a local newspaper for a set period of time before they will finalize the paperwork and give you a certificate which you can take to the bank.

Like I said, ask a professional in your city. Any advice you get from an internet forum is more than likely not coming from anyone who is familiar with all of the state and county laws which apply to you, especially if said advice is full of spelling errors and AOL chatroom-speak.
Ah ok. Thanks. I will look more closely into this and probably seek legal advice :).

Thank you very much corey. Now I understand, incorporation is the process and Corporation is the actual title.It can be confusing - we Americans have to have 10 words for the same thing :)

It can be confusing - we Americans have to have 10 words for the same thing :)
Hehe, tell me about it.

But have you realized, some companies like to use Inc. like Adobe Systems Inc. and some companies like to use corporation like Microsoft Corporation.

So I guess its each company's own preference, right?