This section of the forum is for discussing the business and finance issues of the t-shirt industry. Which business structure to use (sole proprietor, LLC, S Corp, etc), how to handle billing, where to register your business and get the proper licensing, etc.
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?
Last edited by DEPICTIVE; October 16th, 2009 at 02:01 AM.
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.
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
__________________ "well, you're damned if you do, and you're damned if you don't."Bart Simpson www.wabangwear.wordpress.com
Registering my LLC. Help! 
