Now that I have a name for my REI Business, what do I need to do to get started? Is it as simple as getting my tax ID? How do I make sure the name I want is available? Thanks for helpinpg this newbie create a better life for his wife and kids!!!
I would just use a DBA unless you significant wealth outside of your real estate business. If you incorporate or organize, then the company that does it for you should include a name search.
So setting up a DBA is done at my county clerk right? Will they tell me if the business name already exists?
Also, do I need a state or federal tax id?
Only if you plan to incorporate.
I am in Texas also. You only want to form a business if there is a business reason to form one. I have an LLC that I use for my trusts, but I buy my houses under my name. Indivuduals can get 90% financing while companies have to put down 20%. In real estate there are only 2 businesses for people. 1) is buy fix up and sell, 2) buy fix up and rent. What are you trying to do?
I plan on starting with just wholesales and eventually getting more involved as I learn and accumulate some capital. So do you have a business name with a DBA? Do you have a tax ID?
I do business under my name. I have an LLC for my trusts. My LLC has a tax ID number because my LLC is a separate entity. I have had businesses for years and with a DBA I use my own Social Security number, because it is me Doing Business As (company name) so you don’t need a tax ID number.
I suggest you start the business instead of spending money on a DBA and time getting a tax ID number.
Thanks for all of your help, I am excited about getting started. I am probably going to start by just bird dogging a few deals to learn the wholesaling process hands on. Any suggestions?
No tax id is needed. DBA is just an alias for yourself. It gives you a bit of professionalism without all the hassles of incorporation.
Thanks for the great info.
Also, do I need a state or federal tax id
I always recommend a tax id, even if you are operating as a sole proprietor or DBA. Otherwise everyone who sends you a 1099, or to whom you send a 1099, and many other people you do business with, all get access to your social security number.
Wouldn’t setting up an LLC and doing business under it build up your business credit?
In my humble opinion, getting started in REI has nothing to do with picking a business name, getting a tax ID, purchasing equipment and office supplies, getting a separate phone line for your business and fax machine, printing business cards, and anything else you can think of.
All that stuff is just an excuse to procrastinate.
By all means, form a business enity if that is what you want to do, but don’t use the lack of a business entity as an excuse to delay doing business.