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Thread: To DBA or not to DBA...
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06-29-2005, 03:06 PM #1Web Hosting Master
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To DBA or not to DBA...
I'm at quite a crossroads - should I file for a DBA now or wait until my business becomes more succesful.
PROS, in my eyes:
*Its only a little more than $100 to have it done professionally.
*It'll likely give me a confidence boost (having something that few hosts actually have - a legally registered name)
CONS, in my eyes:
*Its $100 more to spend.
*It isnt necesarilly required, so why bother.
*Chances are, no one else will really notice.
I already have quite a few clients and I am almost finished with my website redesign...and now that I think about it, I dont know if I should legally register.
I know I'm not ready for an LLC yet, its too big of a cost for me and not worth it right now (stupid California tax board - $800/year for LLCs)
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06-29-2005, 03:21 PM #2WHT Addict
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I did it from the outset. It only cost $25 to file with the state (Maryland) and the form wasn't much more than the name of the company and My Name/Address. If you're going to be doing things under another name, and if anyone is going to be sending you a check to the business name, it's best to just do it and be done.
Thats my $.02.
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06-29-2005, 03:21 PM #3Web Hosting Master
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I'm curious as to what county you are in, and why you think it isn't required?
I'm assuming you don't have a valid business tax license?
I'm assuming you don't have a checking account in the business' name and haven't tried to get one.
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06-29-2005, 03:31 PM #4Web Hosting Master
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There would be no reason for me to have a business tax license. Legally, in the eyes of Uncle Sam, I am not a business. I don't have a checking account in the business' name, and hadn't really planned on needing one...but now that you mention a checking account, I realize it might be useful to have. So maybe I will file a DBA, just for that reason alone.
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06-29-2005, 03:42 PM #5Web Hosting Master
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Alright, I just got the forms, I'm filling it all out. Thanks Lightwave.
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06-29-2005, 03:44 PM #6Web Hosting Master
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Originally posted by AntiSpamHosts
There would be no reason for me to have a business tax license. Legally, in the eyes of Uncle Sam, I am not a business.
When, I say business tax license, I'm talking about a license you would have with the particular city and/or county you are doing business in.
It's not so much as a "license" but, basicaly just you paying your yearly/quarterly city/county business taxes.
If you're not doing business... then you have no need to file a DBA/Fictitious Business Name Statement.
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06-29-2005, 03:47 PM #7Web Hosting Master
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As Angst7 mentioned... it's really eazy to fill out the form as long as you know your name and contact information
You need to be aware tho that you'll have to have your DBA published in an accredited paper for 4 weeks and for that proof of publication to be sent back to the county clerks' office.
Most business newspapers do this service for about $20 and your county clerk/recorder can probably refer you to several.
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06-29-2005, 03:49 PM #8Newbie
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If you like your Business and don't want anyone else to have it
DBA. It's cheap I live in OC CA and used:
I used OC Register newspaper
Why file a fictitious business name statement?
To open a business account with a bank.
To protect your business name from being used by someone else.
To be entitled to entertain action in any court of the State of California.
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06-29-2005, 03:52 PM #9Web Hosting Master
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Guys, guys, guys...It's already over with the discussion. I am doing it
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06-29-2005, 03:53 PM #10Web Hosting Master
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As a sole proprietorship you don't pay business taxes. You pay personal income tax on all money you make. Same with a DBA and LLC, in every state I've heard of.
I guess I gotta love MN. $125 to register as an LLC and no annual fees.Doyle Lewis
BuyHTTP Internet Services - In business since 2003
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06-29-2005, 04:11 PM #11Web Developer
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No annual fees? In CT it's $60 to incorporate and then $250/yr IIRC. You're lucky.
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06-29-2005, 04:16 PM #12Web Hosting Master
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For anyone else reading this thread (for future reference), as far as I know, from what I learned in my Business Law class:
Even if you are running as a Sole Proprietor, if you are doing business under any name OTHER than your legal name, you MUST register a DBA, also called AN (Assumed name).
For Example. I can do business as "Aaron Abramson Hosting" as a sole proprietor without filing for assumed name, because I'm using my own full legal name. But if I am operating as "Utaria Web Services', I MUST file for assumed name.
In either case, I strongly recommend checking with your states office of the Secretary of State.
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06-29-2005, 04:29 PM #13Web Hosting Master
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Having a DBA/Fictitious Name Statement has nothing to do with business entity type, you may or may not need the filing for all entity types.
I think what you meant to say is, that with sole proprietorships, general and limited partnerships, S corp,s and some LLCs owners' typicaly pay their federal business taxes through their personal income tax return.
That doesn't mean they don't possibly owe completely separate local city business tax fees.
Ie, in my particular city:
"All persons or companies conducting business in San Jose must pay the business license tax whether or not they have an office located in San Jose. This tax is required prior to the commencement of business in San Jose. All businesses pay a basic tax rate of $150.00. Businesses employing more than eight people also pay a tax increment of $18.00 for each additional employee. Commercial and residential landlords and mobile home parks pay based on square feet, units or lots, respectively."
They don't care wether you're a sole proprietorship, or the largest C Corp in the world.