Separate Entity vs DBA

Nov 05, 2007 2 Replies

I am incorporated as an S Corp for my primary business, which is web site development. But I am soon going to be creating a website to sell a few products online. For this new venture I am considering if I should create a DBA off of my current S Corp, or create a new LLC or S Corp. I am thinking the easiest route would be to create an LLC (which has a lot less paperwork than the S Corp) and then have the LLC "zero out" every month by paying my S Corp a fee for the web development work and hosting. Is there anything wrong with that type of setup?



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What's the point? If you just want a new business name, a DBA is much easier, typically just a form at the county courthouse, and no new tax forms at all.

Yes. Why not just operate as a sole proprietor (Schedule C/SE), using a DBA if you wish, and avoid the complications. That's how you will be taxed anyway.

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