Originally Posted by emmphotography
I'm starting a PT photography business. I have a FT job. I'm single and have no dependents. I've been looking at the various charters on the MN SOS's website. LLC or DBA? What would be most "ideal" for me to operate as? Do I need to register for an EIN? Do I need to pay myself if I operate as an LLC or DBA?
I'm starting a PT photography business. I have a FT job. I'm single and have no dependents. I've been looking at the various charters on the MN SOS's website. LLC or DBA?===>>basically you can choose one of them; If you have filed to become a corp or LLC, then you?ve already registered your business name and don?t need a DBA. However, you will need to get a DBA if you plan on conducting business using a name that?s different than the name filed with your LLC/corporation paperwork. as a sole proprietor, then you?ll need to file for a DBA if your business has a different name than your own name
It?s the easiest way to register your name: If you?re a sole proprietor, then filing for a DBA is going to be the simplest and least expensive way to use a business name
? What would be most "ideal" for me to operate as?====> hard to tell it depends; An LLC is provided personal liability protection.;however, under DBA unless you form your biz as SMLLC no liability protection.
Do I need to register for an EIN?=========not necessarily but you need one to open your biz bank acct; And for sole proprietors, a DBA is required in order to open a bank account and receive payments in the name of your business
Do I need to pay myself if I operate as an LLC or DBA?=====>as an LLC owner/member, you can, however, pull periodic draws from the LLC. You can withdraw money from the company accounts, or you can NOT give yourself a salary on W2unless you Elect to change your LLC?s tax classification before paying yourself a salary.
. A draw is basically an early withdrawal of anticipated year-end profits.
Withdraw funds from your llc account to your personal account to pay yourself if your LLC files its taxes under the default classifications from the irs; These withdrawals are not considered a company expense. For a single-member LLC, you pay self-employment tax on the company?s entire profit