LLC or corporation

Here's the answer to that question: First of all, it is recommended that you form a corporate entity such as an LLC or Corporation. Form an LLC because your use of workers makes you an employer and thus subject to federal and state unemployment and employment taxes as well as Medicare, and social security taxes. By the way, your employers may sue you for several reasons including sexual harassment and discrimination. Hence, your need to file an LLC to protect you company and yourself.

LLC or corporation is a better choice than a dba because a dba does not protect your personal assets, but because the matter is legal, and tax related, an LLC and Corporation are both corporate entities that provide legal and financial protections as well as tax benefits..

 In short, the LLC is better because it is more flexible to run as far as paperwork is concerned.. any more info than that will require a CPA or Attorney. Generally, forming an LLC is better than Incorporating your business. However, you cannot go wrong with either an LLC or Corporation entity because both provide a real cheap business insurance and insurance against creditors, personal civil and tax liability protections.

With that in mind, you are required to obtain a federal and state employment tax identification number, also called a fed EIN, and state ein because you will hire emploees. In addition, you need to get and pay business tax. Business tax is a flat tax you pay usually per year / annually and it sometimes called business occupational tax or a business license. Furthermore, your use of a trade name makes subject to trade name registration if you get the llc and the trade name is different than the llc name.

Here online is where you can get your documents.  Form an LLC and you will be separated from being liable for personal civil liability as well as help you avoid business debt related lawsuit against you and your personal assets for debts you obtained for the business and have signed as an officer of the corporation or an LLC.

 In short, get an LLC limited liability company, get a federal tax id and a state tax id employer number, and register your business with a business license and you will be ready to start your business.

You need to get a dba if you trading with a different business name because that is the law.    A trade name is called different other terms in the USA, but most commonly it is called a DBA, fictitious business name or assumed business name. Is short, you need to register your trade business name at the state clerk, county clerk or city clerk. Since you are getting a federal tax id number use it instead of you social security number to open a bank account. Also, note that forming an LLC or incorporating will shield your unintentional personal business related actions.

An LLC filings starts at $199 as of 12/16/09 but prices may change without notice.