LLC, INC, ect. which do you choose and what is the difference?

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[R]DeVore

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I am going to be registering a company soon and wanted to know which way I should go.

Should I go with the LLC, INC, or another form of registering? What are the differences? I am clueless to this, but I need to have a company registered for the apartment I am moving into so they know I am legitly doing business.
 


Entity formation is handled by the state and different procedures and rules apply depending on where you live. Not sure where you live but my state (KS) has the following:

https://www.accesskansas.org/kbc/busTypes.html

which gives some general overview as to what the difference, advantages, disadvantages, of each entity are. Most of which is applical to all states. Only the fees and filing procedures will be different.
 
i've got an s-corp... there was a reason to go with this entity over an llc but i can't recall right now.
 
An LLC is easy and cheap. Bizfilings.com is a reputable company that will set one up for any state.
 
Scorp will save you some good change on taxes. Basically, an S-corp you make yourself an employee and give your self a salary, say $25K. Only that $25K is subject to SE tax ([FONT=arial, helvetica]15.3%)[/FONT]... the rest is profits for the company which is subject to income tax but not SE tax up to $90K.

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check out nolo.com and order one of their books. try their book on llc vs. s-corp. their books are awesome and will teach you a lot.
 
when you sign up with adsense using a dba, do you use your SSN to sign up also or an EIN, or is the EIN only if you establish a LLC?
 
Don't mix DBA, EIN and SSN. DBA is filed with the local authority (i.e. city), it allows Joe to Do Business As J.Tires, and in turn allows you to cash checks made to that name.
In general EIN (Employer Id Number) is meant for any person or business who has employees and needs to report the IRS about their earnings. With that said, it is also required by banks and business-credit providers to be used as an id. So EIN is the SSN of a business.
EIN can be obtained online and number is issued on the spot. If you want a second Adsense account this is a perfect way to go...
 
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GiladG said:
Don't mix DBA, EIN and SSN. DBA is filed with the local authority (i.e. city), it allows Joe to Do Business As J.Tires, and in turn allows you to cash checks made to that name.
In general EIN (Employer Id Number) is meant for any person or business who has employees and needs to report the IRS about their earnings. With that said, it is also required by banks and business-credit providers to be used as an id. So EIN is the SSN of a business.
EIN can be obtained online and number is issued on the spot. If you want a second Adsense account this is a perfect way to go...
Click to expand...

Thanks GiladG!....but you'll have to setup a business before you request a EIN right?
 
a DBA is not a business per se (though it is an official filing of a business name you use), it's just a name YOU use to do business "as", hence DOING BUSINESS AS. A DBA (also known as a sole proprietorship) does not in any way to protect you, like an Inc, LLC or other form of Corporation may. I say "may", because you can not just set up a corporation and do whatever you want, thinking that you're personally 100% protected from your acts as a corporation.

As a DBA (or even an S-corp) ALL income the company makes, passes through to you, and it's considered personal income.. This presents some pros and cons.. If you're a C-Corp (typical corp), you may incur personal tax liabilities, as well as corporate ones, unless you have an accountant help you set it up appropriately to prevent double taxation - it's not too complicated..

A C-Corp is considered its' own entity, and is thus assigned an EIN (Employer Identification Number) which acts 'sort of" like a business social security number. I DO believe a DBA can be assigned an EIN as well, though, so check into that if you desire to remain a DBA.

If you have NO employees, and you're operating a business presenting little or no liabilities, and you're not worried about doing business with "big business" that may look at a DBA as unprofessional, amateurish or "small", you should stick with a DBA and get an EIN for each DBA you create (as a benefit for establishing adsense accounts using multiple EINs).

Essentially, you could create as many DBAs as you want..

Enough rambling, sorry if it's confusing, here's a great link explaining more about DBAs, how to file them, where, how soon etc..

http://www.mycorporation.com/dba/dbafaq.htm
 
I always choose LLC. It's just less paperwork for me, and comes with almost all of the perks and tax breaks as the Inc does. I haven't used an Inc since my porn days. DBA's are good if you're on a shoestring budget and don't plan on doing anything large scale.
 
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