DBA????

[Shaun Hunt]

I have a DBA, I'm not sure why. :) I was advised to open a DBA in order to pay my kids for helping with the rental improvements, lawn care, property management, etc.

Do I need one? How does it help? What is the BIG IDEA of a DBA in my case.

I have five properties, we do 90% of management and repairs.

Thanks in advance!

[Daniel Chang]

A DBA is required if you hold yourself out to public as doing business in a particular name. For instance, if you have a property management company that operates as a sole proprietor. You can call it Shaun Hunt Property Management and in most jurisdictions, you won't need a DBA because your individual name is present. However, if you want to call it anything else, ie Acme Property Management, you will need a DBA. A check that's made out to Acme Property Management will need to be deposited in a bank account that has the DBA on title.

As for paying your kids, I believe you do not need a DBA for that purpose. You can pay your kids as a sole proprietor. However, in your situation, since you are not really in the property management business (you manage your own properties only), perhaps the recommendation was because to give the impression you do have a an active property management business and pay your kids out of that. I'd be interested to hear what more knowledgeable folks have to say about this.