Overview description:
Forming as a Limited Liability Company (LLC) or corporation
limits your legal and financial responsibility as a business owner for the
activities and debts of the business. It allows you to create a separation of
your business assets and personal assets.
Benefits of incorporating:
- Protection of your personal assets
- Save money on taxes
- Build credibility for your business
Overview description:
A DBA name is an official registration of your business
name. A good example is if Jane Smith wanted to start "Jane's Tax
Services," she would need to file for a DBA. A sole proprietor can operate
under a name other than their legal name which can have many benefits,
including added credibility and professionalism, as well as level of separation
or anonymity. Filing a DBA also means a sole proprietor can open up a separate
bank account under the business name (requirements vary), allowing your
customers can make payments to the business itself, instead of to you
personally.
Benefits of filing a DBA:
- Accept payments and open bank accounts as your
business
- Gain credibility and legitimacy as a business
- Separate your lines of business
Overview description:
An Employer Identification Number (EIN), or Federal Tax ID, is
a unique number assigned to your business by the Internal Revenue Service that
is used to identify a business entity, allowing you to file business income tax
returns.
Benefits of filing an EIN:
- Allows you to be able to open a business banking
account
- The IRS requires that every business have an EIN
before hiring employees
- Filing an EIN allows your business to build its
credit profile
An Operating Agreement is an agreement among LLC members
about its business and the rights and duties of its members. No matter what
method you choose to form your business, an operating agreement is an important
asset and the foundation of any LLC.
Benefits of having an operating agreement:
- Clearly outline the details of your business
- Defines roles and responsibilities of the
members of the business
- Helps protect your personal assets