Many companies start out as sole proprietorships, and that's fine. But as you grow and you become somewhat established you won't get anywhere without at least creating a DBA. What's a DBA? A DBA (doing business as) allows you to run your business with your chosen business name other than your first and last name. It registers your business only with your local city hall and that's it. You are allowed to accept and write checks with that business name and pay your taxes like you normally would but with a little bit more responsibility.
As your business grows more or maybe you want to start off running, you should start an LLC. When it comes to asset liability (like keeping your finances and property seperate from your business), LLCs protect an owner/owners in ways that sole proprietorships cannot. As long as there there is no fraud or criminal behavior, the owners of an LLC are not personally responsible for the company’s debts or lawsuits. This is because the LLC is legally considered its own entity, and all finances are kept separate from the owners themselves.
There are many types of LLCs but the two main ones we are going to talk about are single member LLCs and multiple member LLCs. All LLCs are registered with your local secretary of state and here in CT, the cost is $120 + any filing assistance you may choose to get help woth. CONTACT SOLUMA MULTISERVICE IF YOU NEED HELP WITH THIS. Many individual business owners often opt for a single member LLC registration unless they have business partners in which A multi member LLC is required.
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