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3 Replies Last post: Aug 10, 2008 3:36 PM by Lighthouse24

Converting a DBA to an LLC

Aug 10, 2008 3:39 AM

Click to view linuxguru's profile Start-up linuxguru 2 posts since
Aug 10, 2008
I am wanting to create an LLC for my business. I presenty have an EIN for my DBA and all of my bank accounts use it. I looked on the SBA website and I could not find anything that related to something like this. Would I have to register for a new EIN and get new bank accounts once I form the LLC?
Are there any stumbling blocks I will run into when it comes time for filing taxes with part of my year as a DBA and the other as an LLC?

Thanks for the help

Philip
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Click to view LUCKIEST's profile SCORE LUCKIEST 7,935 posts since
Aug 6, 2007
1. Re: Converting a DBA to an LLC Aug 10, 2008 6:19 AM
Converting a DBA to an LLC, Welcome

The DBA is the most common form of business. It is great that you have an EIN number.

To Form a LLC, you will need to register the new business name and get a new EIN Number.

A Limited Liability Company (LLC) combines the tax flexibility of a partnership with the personal liability protection of a corporation.
LLC owners report their share of business profit and loss on their
personal tax returns, similar to tax reporting for a general
partnership. Forming an LLC can help you separate yourself from your business,
protecting your personal assets in the event of a judgment against the
company. All 50 states and the District of Columbia now recognize this
popular business type.

Do you have an Accountant, A Lawyer. It is suggested that everyone in business should use the
services of a professional.
There are NO "stumbling blocks" when it comes to taxes. The DBA would file from Jan 1 until
what ever date the LLC starts and the LLC would cover the rest of the year.

Good luck, LUCKIEST
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Click to view linuxguru's profile Start-up linuxguru 2 posts since
Aug 10, 2008
2. Re: Converting a DBA to an LLC Aug 10, 2008 11:38 AM
in response to: LUCKIEST
Thanks, I somewhat had expected this. This may complicate a few things with the banks. Nothing is really that simple it seems!

Thanks again.

Philip
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Click to view Lighthouse24's profile Mogul Lighthouse24 2,396 posts since
Oct 10, 2007
3. Re: Converting a DBA to an LLC Aug 10, 2008 3:36 PM
Yes, the LLC would need its own EIN. As far as the bank accounts, check with your bank -- it may be possible to add the LLC to the existing commerical accounts. Of course, you'd want to apply for any new business credit as the LLC entity, not as a sole proprietor.

Welcome to the community, and best wishes.
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