I'm just starting out a digital record label, it is all ran by me, do I need an EIN? Is it ok to run business under my name or do I have to register the name of business entity? Can I switch this to a LLC later, or will it just be better to do that in the first place?
2 Answers from Attorneys
If it is going to be a "real' business, then absolutely, you should establish an LLC, you should probably register your TM, Logo etc. for protection in the IP arena, and perhaps most importantly, have contracts that protect you in the event that inevitable disputes arise.
This is an area which (c), and TM disputes are extremely common, and solid pre-litigation legal representation is a sign of a well advised business owner.
You may always operate a business as a sole proprietorship, however, that is rarely a wise choice. An LLC has pass through taxation which means any income is taxable at your individual rate. You also gain a limited liability shield for debts incurred by the business (assuming your business is able, at some point, \to obtain credit in its own name without a personal guarantee).
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