LLC, DBA or just GO to start?

Question

Hello BP!

I know there are a ton of posts regarding LLCs and DBAs for starting out, but I want to spell out my thoughts here for some advice...

I want to use a website for my marketing side of things, but I would like to use a site different than my own name as in DeuterInvestments.com. If I do that, would it require a DBA/LLC? In time I would like to use that name a business name, which is why I would rather start my site with that first. Can I start out using that site, but merely run any business side transactions as my personal name?

My next question is how does business credit work? If I started a DBA and in time decided to go to an LLC, does anything tied to that DBA transfer to the LLC or is it starting fresh again?

Thanks for any assistance!

Will

Arlan Potter · Answer

@Will Deuter

When you get 25, or 50 or 1000 properties.

Not needed today.  You may find that the business is not for you and then you will have wasted time and money.

Build a portfolio, have good insurance, and then get an LLC.

Will Deuter · Answer

Thank you all for the input! I am just gonna start taking action!! Gotta make 2016 awesome!

Steve Vaughan · Answer

An LLC with no real purpose and without a strong Op Agreement will satisfy just that:  no real purpose.  I'd wait to have a reason and focused vision.  Just my coin.  Cheers!

Jeff Robert · Answer

I wouldnt mess around with a DBA, set it up as an LLC from the start.  In Michigan, the filing fee is $50 and takes 2 minutes.   If you are the only owner, the IRS will see the LLC as a sole-proprietor, so your taxes will be no more complicated than they are now.   File for an EIN with the IRS using the SS-4 form (free), which will allow you to open up a bank account in the LLC name.   If you ever gain a partner, you can then use that same EIN to file your partnership taxes.

Since it's cheap and easy, get the LLC setup out of the way from the start, and you'll avoid all the questions you asked down the road.

Oh, since DeuterInvestments.com is still available, and you've mentioned it publicly, I recommend purchasing it asap before some squatter grabs it.

Jeff

Derek Martin · Answer

An Indiana LLC still requires "permission" to conduct business in Illinois (IL Form LLC 45.5). Guess how much that costs? Yep, $500. If you're doing everything in Illinois, your easiest/safest bet is to form an Illinois LLC.

However, an LLC may not be needed at this point. You can still buy the URL, mail the pieces, go under contract, and many other things without an LLC. They're expensive. And it's my opinion that most new investors form an entity too early. I don't know the details of your business, but $500 might be better spent on marketing than just giving it to the state. Good luck!

Edward Mccracken · Answer

Hmmm.... You just gave me an idea Jeff. I haven't opened up a LLC for  8 years.  I know its around $200 every year to renew.  I didn't think it cost $500 to set up.

I probably will set up a LLC in Indiana now.  I wonder if their protection laws are any different.

Jeff Robert · Answer

$500 for an LLC?  Dang.  So much for putting each property in its own LLC.  Why not drive over to Whiting, Indiana one day and open up a mailbox for $75, and then you can file LLCs there (also $50) for a fraction of the cost.

Jeff Robert · Answer

Us midwesterners never understand how the coasts and overly dense cities justify such insignificant things with higher prices.   I'll take 4 seasons, a 2500 sqft home on 2 acres for $200K, a down to earth girl, clean air, and 100 yards of open highway in front of me and my V8 every day.

Account Closed · Answer

and $800/year in California! I guess the beaches, models, and 70 degree weather is worth paying the high LLC fees :)

Tony Dixon · Answer

Jeff,

Flawless advice! You know your stuff.

LLC, DBA or just GO to start?

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