To LLC or not to LLC

Will a DBA suffice?

[SEOMike]

I'm starting to freelance and doing business under a company name. Should I go ahead and do an LLC, INC, or should I stick to DBA? I don't want to give an unprofessional appearance to clients, and I would like to protect my personal assets as much as possible.

Any help would be appreciated.

[bakedjake]

You should talk to a lawyer and a tax accountant about your options, responsibilities, and risks with each type of company. They vary from state to state.

[PhraSEOlogy]

Mike,

This is just my opinion but I have been frelancing for about 20 years and always use a company (Inc in the US or Ltd in the UK). I have found it easier that way.

I messed up when I first started - using a DBA and paying for stuff with my personal credit cards etc. My accountant soon taught me to be wiser.

You can incorporate for less then $200 in some states.

[Brett_Tabke]

And check if subchapter s is better than llc in your state...

[Webwork]

LLC varies by State.

I'm not certain but I suspect you can opt for either subchapter S status or something akin to subchapter S tax treatment if you opt for LLC status, which is about allowing income to pass through to you, versus being taxed first at the corporate level and then individually. What's the advantage in your case of taking x dollars are salary and distributing the rest of the corporate profits as?

People come to me with the proposition "I want to avoid liability. Should I incorporate?" I tell them the story of the bus driver and the bus company: When there's an accident I sue the corporation and I sue the guy who had his hands on the wheel.

Are you going to 'have your hands on the wheel'? Then the answer is insurance more than corporate form. It's also possible to 'pierce the corporate veil' given a variety of circumstances - including undercapitalizing the corporation for the purpose of avoiding financial accountability.

For some peace of mind buy an hour or two of a lawyer's time (business and corporate law specialist, with a litigator on the payroll) and an accountant who specializes in business accounting.