Doing business as?

[swirt]

Hi White Pine and welcome to Innspiring.com

We are small (3 rooms) and set up as a DBA under my wife's name. I think if I had it to do over again I would choose the LLC method. Definitely if I were the size you are talking about I would want the protection that an LLC or multiple LLC's offer..

Swirt,
I've recently been told that I should set up a checking acct as DBA - what are the benefits? I already have a personal checking account that I use only for my business. The bank is offering a promotion for business accounts, but I am clueless as to what the benefit would be or if there are any tax reasons I should do it. Any help from anyone would be greatly appreciated.
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Swirt,
I've recently been told that I should set up a checking acct as DBA - what are the benefits? I already have a personal checking account that I use only for my business.

If you operate under a name that is not yours, you need a DBA. So if people are writing a check to XYZ Innsitting, you need a DBA to connect it to your personal account (or set up a business account) so that you can process the checks. If you are only operating under your own name and people pay you with checks made out to you, then you don't really need a DBA.
Beyond that, there aren't really any direct financial benefits, it simply joins your name to your alias and puts on record (typically by county) that starting on a specific date you are conducting business as whatever name you pick.

 

[Mary at Bridgewater Inn and Cottage]

LLC here at my B&B and B&B checking account. In Virginia you can get on line and fill out LLC/submit on the State Corp. Comm. site..cost $100.00 or pay a lawyer $500.00 to do the same.Most states have a State Corp.Comm and you can research all your options there.Best wishes for your new venture.Mary in Bridgewater.

 

[EmptyNest]

I always suggest talking to an accountant. Especially with a property that large that also involves a restaurant.
If you're doubting your acct, ask more questions...why does the acct think this is a good idea? What other options are there? Pitfalls of all of them?.

I'm thinking along those lines-- I am the original skeptic. I was hoping to hear feedback from those actually doing it (the LLC to LLC). I am always thinking outside the box, but I want to be safe and legal. I just am looking at the real world. She also told me years back I could not use a credit union for my business account and tax payments. I found although they did not do comericial loans at the time, they did do business accounts and I was able to do my payroll tax payments too. I saved a great deal in fees, and for a long time even earned interest on my checking! The accountants have been very helpful over the years, and they do alot of small businesses (including at least one motel and a b&b that I am aware of). By the way,I am not interested in doing a restaurant. The kitchen has been used in the last couple of years for a wedding and a large group dinner, but the property is located just outside of a small town and there is a good family restaurant in town.
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I don't know that anyone here has anything like what you are looking to do. that's why no one can give you more feedback than we have. I guess in this case you take the accountant and lawyer advice and hope for the best. Good luck