Hey guys.
I’ve been reading so many threads and learning many things. Lots of info on this form for sure!
I haven’t done my first job yet but am looking into insurance and an LLC. I know rules for LLC’s differ from state to state however, I am a little confused on the LLC/DBA thing so I have a question if anyone would like to help me understand things.
LCC - Do I have to use my real name in the company name? Or, do I have to create a DBA for naming the company anything that doesn’t include my personal name?
Don’t want to sound stupid or anything, I’m just not sure.
I’ve never heard of having to use your real name in an LLC. Are you referring to the actual business name?? Like are you asking if has to be PuJo Services, LLC?? If that is the case, I don’t think so or at least I’ve never heard that. My name is listed on the legal paperwork, but not in the business name.
You can create the LLC in any name that you want. Your name will be listed as the owner. If you don’t have employees then an LLC isn’t going to be of much benefit to you.
Awesome, yes.
I just didn’t want my name in the company title.
Everything else is fine for legal purposes.
I will be the one man gang with an LLC.
Just wanna separate my personal life from the business.
Steve,
From what I’ve been reading. Regardless if it’s just me, or several employees, creating the LLC is the best was to separate the company from my personal life in the event I was sued. If I am incorrect, please, let me know!
LLC is the way to go. However, there are several kinds of LLC’s that you can go with (sole proprietor, S Corp, etc). I would talk with your accountant to see what works best for you. I made the mistake of filling mine before I talked with my accountant and had to go back and change it. Was able to change, just made it more difficult.
An LLC won’t protect you as the owner from being personally sued if you are the person who did the actual work. At least in my state it won’t. Forming an LLC for the sole purpose of protecting yourself is called an “alter ego.” If the suing attorney shows that there is not enough separation between the owner and the business entity then the alter ego doctrine is in play. Essentially, you can’t go out and cause harm by something you personally did and then claim you’re not personally liable just because you formed an LLC.
Actually an LLC and those corporation designations are completely separate. An LLC is a Limited Liability Company not a corporation. Forming a corporation is a completely separate legal entity.
You are correct. However, you can have an LLC with a tax filing status as an S Corp. That is how mine is set up for tax purposes. So although you are correct that an LLC and a Corp are different, you can have some combinations making them not completely separate. Which is why I suggested speaking to an accountant to see what works best for him.
They love talking about this stuff. And they’ll likely get you set up with some bookkeeping software. Mine is a QuickBooks coach or something like that and can get you a discount.
A good cpa will make you money. Had a wrestling coach that always used to say a good CPA and a good chiropractor are worth their weight in gold.
Thanks guys.
While I am stuck on this oil rig for the next 2 weeks, I have been spending every minute I can on the site, searching and reading. I have really learned a lot from you guy!
My priority is to get insurance, LLC, jobs.
I know I am not full time but 2 weeks a month I will be and it won’t be too long from now that I will be retiring and can’t see myself working at Wall-Mart.
This is true and probably the main point in the discussion. People always tend to confuse federal tax filing status with legal business entity status in their state.
