Homepage Ownership and Taxation
My brothers and I are going to start a homepage together. We have considered entering into a limited partnership, and have wonder about using a DBA. What process is best suited for the taxation of any income attributed to our concern?
A DBA or our own names?
2 Answers from Attorneys
Re: Homepage Ownership and Taxation
A limited partnership would not come to the top of most lawyers' lists for appropriate entities for an active business venture in Michigan. The limited liability company would be a far better choice.
The term "DBA" means "doing business as" and has nothing whatsoever to do with tax liability. If you form an entity (corporation, partnership, LLC, etc.), then that entity will have its own federal Employer Identification Number and must declare all income, irrespective of whether the entity does business under its own name or some fictitious name.
I can recommend a good lawyer in Michigan if you want further advice.
Re: Homepage Ownership and Taxation
It sounds like you have a partnership to me! You file annual IRS FORM 1065, Ptship. tax return..your local CPA can do it for you..it doesn't matter if you use the DBA or not..Just go get FORM SS-4..for a Fed. ID # now....good luck!!
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