Got My DBA - Now What?

[Doug C.]

I got my DBA. From what I understand this is just for local. What do I need to do on a state level? (Texas)

Thanks,
Doug

[jcarouth]

the way i understand business law you pretty much have to be incorporated to get your name "protected" on a state level.

other than that you should have your sales tax license.

then consult with your lawyer and see what he/she says you should do. i know they cost money, but they're worth it.

[bondarnes]

Originally Posted by Doug C.

I got my DBA. From what I understand this is just for local. What do I need to do on a state level? (Texas)

Thanks,
Doug

An assumed name certificate (DBA) only covers one county, but unless you open offices in other counties it will cover you for doing business elsewhere in the state. A sales tax permit is also needed if you don't have one. They are issued by the comptroller's office. At some point you may also want to get a federal tax ID. You will need one if you ever have employees.

[CaptainTom]

Originally Posted by Doug C.

I got my DBA. From what I understand this is just for local. What do I need to do on a state level? (Texas)

Thanks,
Doug

Your DBA protects you from someone else using the exact name you have registered.
The bank will require a DBA to establish an account using this name.

You should have a tax number to collect sales taxes.

If you are looking for legal protection against losing your home, etc. you need a lawyer who can direct you to LLC, corp. , inc. etc.

[Doug C.]

How about paying taxes on a federal level?

[guitarbug]

Death & Taxes or visa versa , lol. You asked !

[CincoJoe]

I really need to do this. How much of a pain is it? Long lines? Can you do it by mail?

[CobyPhoto]

Originally Posted by CaptainTom

Your DBA protects you from someone else using the exact name you have registered.

Only in the county that you registered the DBA. It is NOT protected in any other county in Texas.

Originally Posted by CaptainTom

The bank will require a DBA to establish an account using this name.

Depends on the name of the business and the Bank. Some do some don't.

Originally Posted by CaptainTom

You should have a tax number to collect sales taxes.

This one is a must. If you take one cent in sales in, you have to collect and remit sales tax on it.

Originally Posted by CaptainTom

If you are looking for legal protection against losing your home, etc. you need a lawyer who can direct you to LLC, corp. , inc. etc.

Homestead and certain other things are protected without having to make your business an LLC, S-corp. etc. It is WAY more expensive to start a small business as an S-Corp or LLC and the protection/advantage is marginal in the first five years, if ever. Further, if you ever take out a loan, line of credit etc. your LLC, S-Corp. provides you NO protection, a bank will not lend to a small business without the principal signing a personal guarantee that by-passes the LLC, S-Corp. etc.

CJ

[CobyPhoto]

Originally Posted by CincoJoe

I really need to do this. How much of a pain is it? Long lines? Can you do it by mail?

Which one?

CJ

[flx2000]

painless actually, went down to the county clerks office, in and out in 20 minutes.
cost $20 and the tax id, i called the irs and was issued an id number over the phone, followed by a card in the mail. simple really.

have to do it over again since i am changing names, and will incorporate.

[CobyPhoto]

Originally Posted by flx2000

the tax id, i called the irs and was issued an id number over the phone, followed by a card in the mail. simple really.

The IRS only issues FEIN - NOT State Sales Tax Permit. You only have to have a FEIN for certin things, jobs you want to bid on etc. and if you employee any one in your firm. If you only have the FEIN you still need a State Sales Tax Permit.

CJ

[CincoJoe]

Got the tax I'd taken care of. That was easly done online.

[bondarnes]

Originally Posted by Doug C.

How about paying taxes on a federal level?

It's an added form to your personal income tax form called Schedule C profit or loss from a business or profession.