Should I register my business as a DBA or LLC?

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QOTD from Cortney: "I have a question... have you or other other photographers you know registered your photo business as a DBA (doing business as) or LLC (limited liability company) with your state/county? Would it be beneficial or cause more problems, especially dealing with taxes and such?"

 Crystal: The largest benefit to listing your company as an LLC or Corp, etc., is for liability issues. If, God forbid, you were to ever be sued (for something like liability, etc., for example), as a DBA they can not only take business assets, but they can also take personal assets (car, home, etc.). If you are an LLC or a corporation, they cannot touch your personal assets in the event of a major lawsuit.

Talmadge: These kinds of questions are really best answered by your accountant and/or an attorney. A DBA and an LLC both have legal and tax ramifications that vary by personal circumstances and your state laws.

Christy: Unless your income is high, LLC will cost you more money when it comes time to file your taxes.

Jenn: I am in Ohio and am an LLC. My tax guy advised that if you are just in business as yourself (no partner or employees) to go with LLC at least until a certain income and possibly change to a C-Corp down the road. This is definitely a question best answered by your tax guy.... And a good tax guy is well worth it.

 

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