Post a new topic
    3 Replies Latest reply on Aug 10, 2008 3:36 PM by Lighthouse24

    Converting a DBA to an LLC

    linuxguru Newbie
      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
        • Re: Converting a DBA to an LLC
          LUCKIEST Guide
          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
          • Re: Converting a DBA to an LLC
            Lighthouse24 Ranger
            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.