Are you a DBA, LLC, or Inc.

[Palmetto Home and Deck 167]

I just had a customer complain that too many contractors are working as a LLC (limited liability corporation). She said that LLC didn't protect her rights enough. That was the first time I ever had a complaint about me being a LLC. (makes me wonder if she is looking for something to go after)

So I was wondering how many of you are working as a DBA (doing business as) LLC, or are fully Incorporated and the reasons for each.

[Celeste 341]

That seems odd - LLC or S-Corp or Sole Prop are TAX statuses and shouldn't have anything to do with customer protection - isn't that what insurance is for?

We're an LLC - it's always been something our customers have gravitated more to (the LLC or Inc) - they seem to think that you're more invested in your company if you've passed the sole prop level?

[SawtoothLogRestoration 14]

As an S corp I only pay taxes on wages paid, not revenue earned. For just a few employees it seems to work out better that way. Not sure about the liability other than that anything in my personal name is safe from anyone looking for money from my company.

[Celeste 341]

Unfortunately, any corporate veil can be pierced.

[PPC 37]

I'm an llc

[A and J POWERWASHING 64]

right in I am dba is it better to been llc my wife said I should think aout changing

[A and J POWERWASHING 64]

sorry right now i am a dba , try to watch deadly catch

[Beth n Rod 1,279]

I would have had the same suspicion as well. I would call that a warning. Now, any upstanding company would have nothing to worry about, but who needs the hassle of someone who is already in the mindset of looking to protect their rights before they have even had any work performed. Given, in the past they could have been burned but that would be a flag for me.

We had a number of potentials in the past who have given us signals that they were looking for a way to get something replaced just by having the work done and putting the liability on the last contractor to do it. A few were looking for new siding, others wanted a new deck. We didn't bite. In some cases we refused to provide any literature or pricing.

I like being able to choose our clients. It allows me to make the right choices for our company and build a more solid client base who really want the service and appreciate the hard work and attention to detail we provide and stand behind.

You have every right yourself to question the intentions of a prospect as it can deeply affect your companies ability to serve the clients you already have and impact your ability to meet your obligations.

Rod!~

[4000psi 16]

I am just a DBA. I would like to look into LLC.

Dane

[Palmetto Home and Deck 167]

“I would have had the same suspicion as well. I would call that a warning. Now, any upstanding company would have nothing to worry about, but who needs the hassle of someone who is already in the mindset of looking to protect their rights before they have even had any work performed. Given, in the past they could have been burned but that would be a flag for me.

We had a number of potentials in the past who have given us signals that they were looking for a way to get something replaced just by having the work done and putting the liability on the last contractor to do it. A few were looking for new siding, others wanted a new deck”

Yea, Rod, that sent up red flags for me too, but most importantly it made me get up off my "you know what" and do something I have meaning to do for a few years now and get my LLC.

I’m not really sure how she figures having a company that is incorporated offers her “more to go after” than one that is working under a LLC. The protection a LLC or corporation offers to the company’s owners personal assets are the same. The main difference between the two is the tax structure. However, anyone working under a Doing Business As or Sole Proprietorship are putting their personal assets at risk. Your house, cars, trucks, checking and savings accounts, and just about everything else you have are on the line if someone decides to sue you/your company. Having a LLC or corporation separates you from your company and protects your personal belongings.

I always thought that having insurance would be enough, but I realize ,now, that if you do this long enough that you will run into sharks out there looking to bite you.

Getting my LLC was really easy and does not require a lawyer. On my way home that day I stopped by my accountants office and filled out a one page form, applied for a Federal ID number, sent the state of South Carolina a check for $110.00 and paid the account $50.00 and it was done.

Think about this if you are still working as DBA, get something done about it. I know I sure feel better now.

[Gutter Squad 14]

After reading quite a bit about LLCs and S Corps, I have begun making the change to an S Corp from my current DBA status. The fact that I can pay myself dividends from the profits of the corp instead of just paying myself directly as a corporate employee has significant tax benefits when considering the self-employment tax "penalty." Also, I won't get double-dipped on taxes as a C Corp does. It also seems that more and more, LLC are just being viewed by courts and the IRS as sole-proprietorships or partnerships.

[SawtoothLogRestoration 14]

I like being able to choose our clients. It allows me to make the right choices for our company and build a more solid client base who really want the service and appreciate the hard work and attention to detail we provide and stand behind.

You have every right yourself to question the intentions of a prospect as it can deeply affect your companies ability to serve the clients you already have and impact your ability to meet your obligations.

Rod!~

Not to cross post here, but Rod summed up why I charge a $50 flat rate for my local bids and more for further distances. My average bid is $9k. People that are about to spend that kind of money don't mind paying $50 for a bid. If they do they probably can't afford the value of my services. I don't charge every person I do a bid for though. Just advertising the charge rules out most problem clients.

[Apple Roof Cleaning 202]

I am an LLC :dance:

LONG LIVE CASH

:taz::lgmoneyey:taz:

[Scott Stone 604]

Cash is good.

[True Clean 14]

I have both. A corporation and a DBA.

[tinsley 14]

iam llc i did it for protection but it also sounds more professional

[Brick city power washing 14]

I'm thinking about inc. my buisness this week. which is better INC. or LLC?

[Palmetto Home and Deck 167]

"I'm thinking about inc. my buisness this week. which is better INC. or LLC?"

Both INC. and LLC offer pretty much the same protection in separating your personal property and what actually belongs to your company. The basic difference is in the tax structure. The link below can give you some information to help you decide which is best for you.

www.bankrate.com/brm/news/biz/Biz_ops/20000831.asp

For more information Google INC. vs LLC

Edited October 28, 2008 by Palmetto Home and Deck

[Brick city power washing 14]

Thank you for the info palmetto, very helpful.

[Douglas Hicks 128]

I am an S Corp. But I noted my attorny is now an LLC. That makes me think I should be an LLC

[premierpw 14]

I am an LLC taxable as a corporation which has a lot of tax advantages

[deach 14]

DBA at this time. IL wants 500 bucks for the LLC, which has steered me off for now.

[sthom21 14]

We are an LLC mainly for the perception of being "more professional". Being more protected from lawsuits was also a selling point for us. A properly setup LLC with all the correct paperwork and policies makes it very difficult to pierce the veil.

[Brad Corns 14]

We are an LLC

[RPetry 564]

First two years operated as a DBA. Switched over to an LLC on the advice of an accountant customer.

[Guy B 70]

LLC from get go.