How to start a small business??

[RatherBhuntin]

DBA definitely, it's easy to setup. Cost about $10 at the county office. Sales tax permit is a maybe. Are you reselling a product that you bought wholesale or are you making a product and selling. What you need is very dependent on what you will be doing.

[Austin]

Dave a lot of what you need will depend on what the business will be offering product or service. LLC's can be a great thing but not necessary

[DRT]

I went DBA. Depending on what you do and how much you bring in makes a difference.
I carry a specialty liability policy that matches the type of work I do.

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[Burnadell]

DBA will kill you tax wise. I've been there done that! As a corporation you're looked at as an employee or board member not an owner... it's a huge difference. Somewhere around 10 to 15 percent...plus it protects your personal assets.

I don't understand your explanation. You own a corporation, but you are "looked at" as an employee? So the corporation pays the corporate taxes and you pay taxes on your withdrawals as a salaried employee?


I won't get into an argument with you on here, but your statement, as a blanket statement, is not correct. Many corporations elect to be taxed as a Sub Chapter S corporation due to the tax advantages. Sub S corps are not taxed as corporations but rather the revenues and expenses flow through to the individual owner(s) and are taxed as individuals.

You can also incur double taxation with a C corporation by dividending out excess profits.

As Curt stated the primary reason folks set up LLC's is for liability protection.

[Burnadell]

I hope a CPA will jump on here and explain how my thinking is wrong.

[Sparkles]

I hope a CPA will jump on here and explain how my thinking is wrong.

Not a CPA but I’m sure you’re wrong.




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[TXHunter12]

The new tax law changed things some for some cases.
But LLC’s are pass through corporations. You file one tax return which includes the corporation.

[Burnadell]

Not a CPA but I’m sure you’re wrong.




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I may be but please explain how.

My point is that a blanket statement can not cover all bases.

[Drycreek3189]

I hope a CPA will jump on here and explain how my thinking is wrong.

Not wrong. I was in the construction business for 15 years and that description is spot on.

[junkmanhunter]

DBA will kill you tax wise. I've been there done that! As a corporation you're looked at as an employee or board member not an owner... it's a huge difference. Somewhere around 10 to 15 percent...plus it protects your personal assets.

I don't see this as being correct^^^^^

I don't understand your explanation. You own a corporation, but you are "looked at" as an employee? So the corporation pays the corporate taxes and you pay taxes on your withdrawals as a salaried employee?


I won't get into an argument with you on here, but your statement, as a blanket statement, is not correct. Many corporations elect to be taxed as a Sub Chapter S corporation due to the tax advantages. Sub S corps are not taxed as corporations but rather the revenues and expenses flow through to the individual owner(s) and are taxed as individuals.

You can also incur double taxation with a C corporation by dividending out excess profits.

As Curt stated the primary reason folks set up LLC's is for liability protection.

Burnadell, this is correct. My business is set up as an S corp. I pay myself a salary and then take retained earnings out a couple times a year. I am taxed on the income I take out of the company. Being an S corp over an LLC is I don't pay corporate taxes, keeps me from getting double taxes. There are many more advantages, as I'm sure you know.

My advice to OP is to talk to your CPA and decide which way is best for you. Then pay the $500 dollars to set up your company... Just my .02 worth

[Hawkpuppy 1]

I think based on what we are going to be doing, a DBA and Sales a Tax Permit will be where we start. As we grow, it will probably turn into an LLC

[duckmanep]

It would be a good idea for you to consult a CPA to learn what kind of records you need to be keeping for tax purposes.

Also, many Junior Colleges have a Small Business Development Center that can offer information and services that can be helpful.

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[Mexico]

I don't understand your explanation. You own a corporation, but you are "looked at" as an employee? So the corporation pays the corporate taxes and you pay taxes on your withdrawals as a salaried employee?


I won't get into an argument with you on here, but your statement, as a blanket statement, is not correct. Many corporations elect to be taxed as a Sub Chapter S corporation due to the tax advantages. Sub S corps are not taxed as corporations but rather the revenues and expenses flow through to the individual owner(s) and are taxed as individuals.

You can also incur double taxation with a C corporation by dividending out excess profits.

As Curt stated the primary reason folks set up LLC's is for liability protection.

What I've said is the truth. I've owned 3 companies over the last 20 yeard, a DBA, a corporation and now a LLC. I turned my first company into a Corporation as fast as I could after paying 38 percent taxes as a DBA under the advice of my accountant. The next year as a corporation my taxes were around 25 percent.

A corporation is it's own identity. Even if you're an owner of the corp. or majority stock holder you are still looked at like an employee of said corp. even if you're the president. Yes I personally take a salary and draws as I wish, the company files it's own taxes and I file separately individually.

[OrangeBlood]

Illegals have been avoiding taxes and get big returns for years, just do what they do.

[Black Ice]

Can someone start a hunting guide service or cattle business as a side job? I have a friend who owes the government every year with no write offs.


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