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5 Replies Latest reply: Jun 28, 2010 10:40 PM by surepayguy RSS

getting a dba and setting up bank accounts

ddexter08 Newbie
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Is ther any finacial harm or otherwise in getting my DBA and setting up bank accounts now (before the store opens to prove some credability to potential lessors)? Or will I be paying taxes and fees on it even if its not being used?
  • Re: getting a dba and setting up bank accounts
    Mailman1 Newbie
    Currently Being Moderated
    There is no harm at all in doing that. Having a business bank account is very important and should be one of the first things you do. There shouldn't be any taxes and fees associated with opening a business bank account. You will only pay taxes when you earn a profit.
  • Re: getting a dba and setting up bank accounts
    Mailman1 Newbie
    Currently Being Moderated
    Depending on your business structure. Sole proprietorships and single member LLC's don't require a separate tax ID. For accounting purposes it is best to get one anyway. Registering your business, DBA, and getting a tax ID should be done before getting your business bank account. The costs of doing this are minimal.
  • Re: getting a dba and setting up bank accounts
    YesYouCan Apprentice
    Currently Being Moderated
    If you are going to operate as a d/b/a (which does not provide any protection for personal assets from business liabilities), you pay taxes on business profits using your own social security on your regular income tax form and don't use a separate federal ID. The d/b/a will have to be secured before you can get a business bank account (which is important to keeping records of start-up expenses).

    Your Doing Business As name is also an important consideration if you are going to have any internet presence because you want an address which identifies your business, not yourself. When you have considered that, and filed the d/b/a, lock in that domain name before it is taken. .com is usually best for business, but choose the best suffix available to fit the type business or service you will be marketing or advertising.

    Tip; log onto score.org find your local chapter and get some FREE help from a SCORE Small Business Counselor who will help with all these questions.
  • Re: getting a dba and setting up bank accounts
    Newbie
    Currently Being Moderated
    You will obviously want your DBA to be registered before opening the store. I can't imagine how you would start the business first. What if that DBA was already taken? What if there was an unforseen issue with it like the name you wanted was a registered trademark or something of another entity?

    As for a bank account, of course you want this open first. Your start up costs should be paid out of a business bank account that is separate from your personal. This is not only smart book keeping, but required when it comes to accounting purposes.

    No harm can come from this. Sure there may be filing fees for your dba registration but if you're committed to making this work, you can't be afraid to take this step. Have everything in place before opening so as not to run into an issue after opening and then being forced to temporarily close or do less business than planned because you weren't prepared.

    You mentioned potential lessors. If you are still in the early phases where you have not even picked out a location, you still want to have that DBA and bank account set up by now anyway. A lessor is not going to feel comfortable renting out space to someone who doesn't have his plans in place. If there are any costs asssociated with your search for a lease or deposits on a space, they should be paid out of the business bank account which you will have set up already.

    Get your documents in order and get your business started!

    Sean Murray
    Sure Payment Solutions
    www.surepaymentsolutions.com

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