hey yall
what is the difference between a dba and a llc…I want to build my corporate credit. I am a beginning realtor in sa tx…I want to start up my business credit asap.
Howdy Strted@22:
A DBA means doing business as and the taxes are reported on Schedule C of your personal taxes. This form of ownership offers no liability from creditors and is the same as buying in your own name. It is not a separate form of ownership in the eyes of bankruptcy and other courts. An LLC if structured correctly and managed properly can be separated from you personally and thus be shielded from creditors to a greater extent. Credit in the name of the LLC is still hard to obtain unless a member signs personally guaranteeing the loan. The income flows thru LLC and onto the members personal tax forms but is treated differently than a DBA. It is grouped together with out partnership and corporate income and is not subject to self employment taxes.
hi tedjr,
thanx for the reply…can you clarify this statement for me…
(((It is grouped together with out partnership and corporate income and is not subject to self employment taxes.)))
I want to build my corporate credit asap. having a llc w my cell phone under it, can that build my corporate credit?
or purchase a laptop under my llc, can that build my corporate credit? I know I have to personal guarntee it, but I just want to start building my credit.
Start your LLC and you will likely get offers in the mail for Business Credit Cards. You will be personally liable for them, bu that is ok if you are trying to build your credit file. Apply for one or a few of the best offers and then just use them wisely. In no time your credit for your business will be established.
Howdy Strted@22:
Income from partnerships, subchapter S corps and LLC I believe are reported on your Schedule E Supplemental Income and Loss and are not reported on Schedule C with you DBA income. Schedule C income is earned income and subject to self employment taxes. and schedule E income is not.
Income from partnerships, subchapter S corps and LLC I believe are reported on your Schedule E Supplemental Income and Loss
Ted,
Only passive income from partnerships, subchapter S corps and LLC are reported on Schedule E.
Active income from subchapter S corps and LLC are reported on Schedule C.
Since strted@22 is a beginning Realtor, I suspect he is asking about reporting active income from his commissioned real estate transactions.
I have another question,
what do I need to start my llc besides a few hundred dollars?..from everything that I have read about starting one, it seems like I need alot of information…what documents are crucial in starting one? ???
Howdy Dave T:
Thanks for the clarification. I guess I hate taxes so I do not know enough about them. I was 50% right. Great post thanks again
strtd@22:
I don’t know if it differs state by state, but I created an LLC and it was one of the easiest things I’ve ever done! It was just a matter of filling out a simple form (basically just the name of the LLC, names of members, etc.) and sending in a check. I couldn’t believe that it wasn’t more complicated than that!
Best of luck to you!
Howdy Lillbitofhope:
It is even easier than that. In Texas you go on line and apply and pay with a credit card and that is it.
hey ya’ll:
with all that said and done…can you build corporate credit with a DBA just like you can build corporate credit with an llc,c-corp,s-corp? 
Howdy Strted@22:
No. A DBA Company is just an extension of you personally. You may be able to get trade credit like Roto Rotor may do a job for you and bill you but no serious mortgages or heavy duty credit.
Ted - do you have a recommended online vendor for this?
Thanks
Tom
Howdy Tomoc00:
Here is the link at Secretary of State Texas Corporation and LLC filings
Thanks
howdy Yall
I was looking into purchasing a laptop from conns in the coming weeks, I was wondering how can I go about placing my laptop under my LLC? As well as my cell phone? What all informaiton do I need to do this kind of thing? 8)
Howdy Strted@22:
Use LLC checkbook or credit card or debit card.
howdy Tedjr,
I created my LLC, and filed it at the website you gave us. I was wondering when do I rec. my tax id number? or where can I get it?
Howdy Strted@22:
The IRS gives out the tax ID number and you have to contact them. They do not watch the sites and wait for folks to file LLC’s and rush you a tax ID number. You can get the form and fill it out and call them and get a number over the phone. Here is the web site to get you strted
http://www.irs.gov/businesses/small/article/0,,id=98350,00.html
thanks tedj
I got my ein today. Its time to build my business credit.