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Moonwalk Rentals
I am starting a moonwalk rental business Do I need to get a DBA or should I incorporate? Is there a difference
I heard that if you are incorporated and someone tries to sue they can only take things from your business. Is this true with a DBA as well? Confused new business owner!
DBA or a fictitious business name is the name of your business, if different from your own. If you are operating the business as XYZ Desktop Publishing, for example, you are required to register the fictitious or assumed business name at your city or county clerk’s office.
Corporation is one of the possible legal structures for your business. Aside from getting your DBA, you need to decide whether you want your business to be a sole proprietorship, partnership, or corporation.
A corporation differs from the other legal forms of business in that the law regards it as an artificial being possessing the same rights and responsibilities as a person. This means that, unlike sole proprietorships or partnerships, it has an existence separate from its owners. It has all the legal rights of an individual in regards to conducting commercial activity -- it can sue, be sued, own property, sell property, and sell the rights of ownership in the form of exchanging stock for money.
As a result, the corporation offers some unique advantages. These include (1) limited liability: owners are not personally responsible for the debts of the business, (2) the ability to raise capital by selling shares of stock, and (3) easy transfer of ownership from one individual to another. Plus, unlike the sole proprietorship and partnership, the corporation has "unlimited life" and thus the potential to outlive its original owners.
One other legal structure that you can consider that gives you limited liability status is the Limited Liability Company (LLC). The main attraction of an LLC is its limited liability status, a feature that it shares with corporations. The LLC limit your personal liability from business debts and damages incurred by the business. It basically lets you off the hook from legal liabilities such as court judgments and legal settlements obtained against the business.
One advantage of LLCs over corporations is in taxation. Like sole proprietorships, partnerships, and S corporations, the business profits and losses of an LLC are taxed at individuals' income tax rates. You will avoid a corporation's double taxation, where taxes are reported at a separate business level.
You can most definitely do the DBA yourself. But if you are electing your business to be anything other than sole proprietorship, it is always beneficial to consult with a lawyer to discuss with you the pros and cons of each type of legal structure and what might work best with your circumstances and business goals.
Houston Inflatable moonwalk rental Interactives for Teenagers, Adults, Children -Inflatable Fun
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INFLATABLE BOUNCE ANCHORS STAKES for moonwalk rentals $29.50 |
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