Question: LLC vs DBA in Los Angeles: 

I am purchasing all of this out of pocket and am completely broke, but I am trying to do atleast the first startup without a loan, so I am very tight in the pocketbook as you can understand. I know a great deal about coffee but practically nothing about the legal/logicistical end of it. I don't know where to even begin and am worried i may overlook some very important details. ANY advice or direction pushing you could offer me would be greatly appriciated.

In general, if you incorporate your business, you will have many fringe benefits: you can fully deduct health insurance premiums, new equipment, travel, and many other expenses. In addition, if you or your corporation has excessive income, you can split it between yourself and your corporation and save thousands in taxes.

I am starting a coffee "cart' really more of a catering style (on a table being set from scratch every time.) I am going to start by attaching to catering companies as their coffee option. I hope to expand my business within a year into one if not multiple of the various amounts of loft buildings here in downtown Los Angeles.

To begin with, prepared food is taxable so you will need a seller's permit to sell your catering services and food.

I would like to set up in their lobbies in the morning and supply their residence with a great cup of coffee from say 7am till noon daily. I could consequently be hiring a small staff in 24-36 months.

Because all business need a business license, you will also need one because catering is a business.   Hiring a small staff requires getting a federal and state employer number tax id.

Without a Corporation, Your Home Can be Taken Away!

If you file a dba as a sole owner, instead of incorporating your business, and someone sues your business, your house, car and other personal assets can be seized to satisfy a court judgment against you. If you incorporate, only the assets that the corporation can be seized. If the corporation has only $1,000 in a bank account, that is all they can take.

Here are the benefits of filing a Corporation or LLC

A corporation or LLC protect you from personal civil and financial liability but it's also the best way to reduce your tax liability.

Because your coffee cart catering business deals in commercial object merchandise object that are touchable, and taxable, you first need a sellers permit that you must get. A seller's permit, a business license, and a DBA certificate. That you are dealing in taxable commercial merchandise is determinative of why you will need to get a sales tax ID. It really does not matter whether you , buy coffee  wholesale or sell retail, and you need to report your sales, subjects you to sales tax reports. The business occupational tax imposed upon all business, forces you to get a business license certificate and renew it every year by paying a flat rate tax in most cases based on your gross income or number of employees and or the particular location your business operates. For example, an office in downtown is taxed different than a home-based business and a professional, such as an architect very differently from a iron works shop.

For example, you need to get a business license, also called a home occupation permit or simply a business occupationaltax license. The coffee cart catering  business license is almost always required by at least one level of government whether that is the federal, state, county or city government. It is also called a federal registration, state professional license or tax registration, county premises inspection and licensing or municipal tax registration or permit as well as a business personal property tax on your business equipment. Other than that, you will need to file a DBA and register your business trade name if you use a fictitious business name doing business as (DBA) as your trade name. If you decide to be a partnership, you must identify it to the IRS with a business tax id number and that is a federal tax id number and you can, also, use it instead of you social security number to open a bank account.

Finally, after all the facts about your licenses above, you should consider forming an LLC or incorporating to avoid legal, civil, and tax liability. You need to do it right right from the start. Get an LLC formation or Incorporate here online. Since you need to to register a fictitious business name because you use a trade name to operate and or promote your business, you need a fictitious business name registration. Instead of registering a fictitious business name, you can simply incorporate or form and LLC. The latter two protect your from coffee cart catering   lawsuits vs your personal assets such as your house, automobile and other precious personal property or real estate you might own. A DBA registration is required for your use of a trade name but does nothing to protect your personal assets nor does it protect the name that is registered. An LLC or Corporation at least protect the name at the state lever. I.e., other LLCs or Corporation cannot use your business name. A Fictitious business name does not protect your trade name against others who want to use in commerce. You can apply and get all licenses on this website. We have the lowest prices in the industry and we are quick and professional. Most of our clients recommend us to others. In fact 40% of our business derives from referrals. Also, keep in mind that our prices include all filing fees, notarization and legal newspaper publication. Start Your Business Today by Getting All Required Licenses Here Online.

The purpose is to protect the public from fly by night companies that hide behind a DBA ( doing business as coffee cart catering ) to collect money and disappear. So the answer to the question above is that because you don't have any employees, and you are not dealing or selling any products or merchandise that requires the collections of sales tax, you only need a couple of business permits and tax ids to start.

The DBA doing business as filing is normally a state law that was enacted to protect the public from possible coffee cart catering   fraud. For example, a business may start and collect money up front from many customers and then "fly away in the night... fly-by-night type of situation. In such case, then only thing would be known is the business name. If a doing business as certificate was filed and was on record, the victims of fraud could go and search and find out who the owner of the business was and file appropriate law suits to recover the money plus possible damages. First you ask... do i need a tax id number application form or a business license application form to apply and get all your required licenses in one easy move... and you are partially right, you can do this on this website - i.e., you can obtain all required documents, licenses, permits, and tax ids to start your business.. We understand what you need and have all the license application forms you need to start your business legally. You case is easy because you are not employing any workers and you don't sell any taxable merchandise that requires some type of tax id to report and pay taxes. With that in mind, you need to apply for a fictitious business name. Then, because all business licenses are required to register for business taxes, you need to apply and get a business license. The trade name registration is required because you are using a coffee cart catering  fictitious business name.