Re: Separate Entity vs DBA

Operating under a DBA has nothing to do with your form of doing business. A corporation or an LLC can also operate under a DBA. The most common situation is when you want to use a certain business name, but it conflicts with another corporation or LLC in your state and can't get the official name you want. As far as your main point, yes, a corporation or an LLC can protect your non-business assets from creditors of the business. Often having a good insurance policy is better, since it may be less expensive and protect you more. If you are planning insurance and want the extra protection, then an LLC may be able to provide it. You still will have to be careful to respect the business entity and avoid the ability to pierce the corporate veil. Stu

I think you're wrong in thinking that setting up a corporation will protect you from most liabilities. It won't; if the suit is over something you did, you're liable, whether or not you did it as an agent for a corporation (in that case, the corporation is _also_ liable). Seth

That's true for torts but not with respect to contractual issues. If the sole owner of a corporation signs a contract as president and no personal guarantee is given, only the corporation is liable, not the president personally. As far as torts are concerned, those can generally be insured against, and insurance is often cheaper than the costs of creating and maintaining a corporation, if you have to choose between the two. Stu