DBA vs LLC as a Wholesaler

[Daniel Hornsby]

Hey BP comrades!

I just wanted everyone's opinion on this subject as it is one that I have been struggling with for some time. It seems to be about 50/50 from what I'm reading, but, why? What does a DBA do that an LLC doesn't or vice versa? What kind of tax advantages are there for a DBA that an LLC doesn't give or vice versa? I only want to know because I will be sending out my first batch of mailers very soon and I want to be as professional in appearance as possible.

Any little tid-bits "that nobody tells you till its too late" (if any) would be great.

I tried searching for another thread on this topic but I couldn't find anything. Please direct me to it if there is one.

Thanks in advance!

[Steven Hamilton II]

Daniel Hornsby,

A DBA means you are an individual "Doing Business As" XYZ.

It offers no advantages of an LLC and is treated as a sole proprietorship.

That said, I highly recommend that your businesses operate as an LLC that uses a DBA. So your LLC is doing business as XYZ. This can help provide another layer to assist in people not knowing who or what you are or aren't.

An LLC allows you to operate as a corporate entity, a partnership, trust, or Sole proprietorship.

I LOVE LLCs and use them for their ability to morph and adjust to my needs and the needs of my clients.

I have a client who just bought out their partner. They were a partnership. She immediately filed Form 2553 and now she is being treated as an S-Corporation.

-Steven