Posted by Dan on 1/3/05 2:32am
Msg #15278

EIN

Hello everyone! My wife is new and I am going to take the classes as well.
So I am wondering about the EIN.
Taxwise,does it make cents to go with a business name or is your own name preferable.
Line two of the EIN form asks about a business name.
Thank you for any information,all.

Reply by Loretta Reed on 1/3/05 7:16am
Msg #15281

I have an LLC (Limited Liability Corp). I decided to become incorporated because of some tax advantages and "some" protection against lawsuits in case a borrower sues me. It also protects my Social Security number so I am not throwing it out to every title company and signing company in the world.

Reply by Tony (FL) on 1/3/05 8:28am
Msg #15284

I use my name. I am a professional in the business and well known by signing services, title companies and lenders. In my opinion the name recognition when you provide quality service is very important. For the purposes of tax reporting I don't believe there is any advantage to a company name vs individual but I am not an accountant or professional tax preparer.

http://floridaloancloser.com

Reply by Loretta Reed on 1/3/05 9:28am
Msg #15290

By becoming incorporated (you can still become incorporated using your name), you put a fine line between you as an individual and you as a company. I would suggest that anyone self employed see an accountant and get advise about being in a business for themselves and the liability that you can come under. I have an accountant who is also my tax preparer and he recommended that I become incorporated. If and when you ever get sued, there are laws that can protect your personal property.

Reply by Jon on 1/3/05 11:00am
Msg #15295

You can file a FBN and still be a sole proprietor. You can get an EIN without being incorporated. The business name does not make a difference in your taxes, whether you are a sole proprietor, LLC, or corporation does.

Reply by Loretta Reed on 1/3/05 9:05pm
Msg #15353

I know that. That is why I became a LLC.

Reply by JanetK/CA on 1/3/05 5:36pm
Msg #15333

In some areas, the name you choose could have other cost implications. For example, a ficticious business name may require you to get a business license (that may or may not be required otherwise, depending on your local laws), register a dba, which may require placing an ad in a newpaper and other fees. You also might have to do a name search to make sure you don't use a name that is registered to someone else. I'm no expert on this, but if you decide to use a dba, you should probably get advice from an attorney.

Reply by SharpMind on 6/18/13 2:38pm
Msg #473859

Dan,

When I have set up my business, I consulted an attorney and a CPA. Both advise me to set up a company. There are legal and financial benefits to setting up a company versus using your own SSN. As someone else stated, a company provides a level of protection against your personal assets.

In my humble opinion, future protection beats the inconvenience of setting up your business in the best possible position. It's all perspective, but I didn't think setting up the company was difficult. The only trip I had to make was to file with the county. Otherwise, everything else was done from home with email or a fax machine.

In Texas, it was ~$300 to set up a company. The secretary of state (SOS) office was very helpful. They answered my questions and searched for name conflicts. It was just a phone call away.

It cost another $15 to list with the county.

One other bonus is being able to have a web domain name that corresponds with your business name. Therefore, choose your business name while you're checking to see if the domain is available.

Although I have my own business name, in the notary business, my name is also out there. It'll be nice to have a central location for both you and your wife.