DEPICTIVE

Should I register now or wait until the end of the year?
Or could I register as a sole proprietor for now then make the change to LLC at the end of the year?

 

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A5150Ylee

You should probably register now if you are active in the business. I believe most state charge the annual fee based on the original filing date and not a calander year (but you should check your own state).

You will have to file a partial year's tax return, but that is not really a big deal as you would have the same tax reporting if you were a DBA, just a different form.

Plus, changing everything from a DBA to a LLC could be more trouble than it's worth.

Just my thoughts.

Wiley

 

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PrintsCharming

The simpilest structure is sole proprietor (DBA). And also the best for taxes. But it's harder to get biz. loans and you are personally responsible if anything were to happen. Depending on if your printing or starting a clothing line, There are different risks involved. Do you plan on having more people involved in your company? LLC taxs treatments varies by state. I don't know how difficult it is to change from a DBA down the road. I have a DBA and my accountant said if i were to hire anybody that the accounting would be alot more difficult. If that helps you any

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hostingdiva

You should register now. It's just easier in terms of taxes, record keeping, and disclosure to the IRS and your state department of treasury.

Based on your location - you're in Hawaii? You can find the information you need here at the Hawaii Department of Commerce and Consumer Affairs.

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