Independent Contractors And Taxes
- FrankN
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Replied by FrankN on topic Independent Contractors And Taxes
Its not really a transition. If you want to set up an LLC there was website to help you walk through it, but it wouldn't be a "transition" from your DBA. You would need to set up it like you are setting up a company from scratch.
8 years 5 months ago
#1
- FrugalFran
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Replied by FrugalFran on topic Independent Contractors And Taxes
Can a DBA transition into an LLC? I'm curious because my husband and I are starting a business with the intention of forming an LLC, but we haven't gotten to that point yet. I'm wondering if I can set up a bank account now as a DBA and then turn it into the LLC when we're ready.
8 years 5 months ago
#2
- Curry
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Replied by Curry on topic Independent Contractors And Taxes
2darnbroke wrote: Why would you do a DBA as an independent contractor unless you're setting up a business? There doesn't seem to be much point in paying to file a DBA in that case. Is there a reason you've chosen to do that?
When a person chooses to be an independent contractor, the next logical step is to own your own business. The first step in doing so, for many people, is setting up a DBA for name recognition, setting up a business bank account and looking legitimate on that level. Acting and sounding like a business is the first step in becoming one.
- 2darnbroke
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Replied by 2darnbroke on topic Independent Contractors And Taxes
Why would you do a DBA as an independent contractor unless you're setting up a business? There doesn't seem to be much point in paying to file a DBA in that case. Is there a reason you've chosen to do that?
8 years 11 months ago
#4
- Curry
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Replied by Curry on topic Independent Contractors And Taxes
That was helpful, thank you. I knew a DBA wasn't that big of a deal, but I didn't know if it affected taxes or not. Now I'm a little better equipped when I go to my tax gal.
8 years 11 months ago
#5
- FrankN
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Replied by FrankN on topic Independent Contractors And Taxes
I of course have to disclaim you should consult with a tax expert for confirmation, and I do not consider myself a tax expert.
In regard to the use of a DBA, I assume you are a sole proprietor, in which you would file as a sole proprietor. If you are an LLC or partnership, your tax filing would be more complex and would require you to file as an LLC or partnership. Long story short, a DBA doesn't actually affect how you do your taxes, it is how your business is set up.
I hope the above information is helpful.
In regard to the use of a DBA, I assume you are a sole proprietor, in which you would file as a sole proprietor. If you are an LLC or partnership, your tax filing would be more complex and would require you to file as an LLC or partnership. Long story short, a DBA doesn't actually affect how you do your taxes, it is how your business is set up.
I hope the above information is helpful.
8 years 11 months ago
#6