I want to start an e-commerce business selling hand made products. What would be the best decision for me legally to make - llc, sole proprietor, dba? Do I need a business certificate, EIN number ? Also how would I go about this for tax purposes and eventually setting up a business account?
2 Answers from Attorneys
Sole proprietorship and a DBA are not business entities. Instead, these are just ways for you to do business personally. This would leave you exposed as far as personal liability and could interfere with your ability to add partners, investors, receive SBA loans, tax write off expenses, and possibly even receive future government business assistance.
Generally speaking, it is advisable to form a company and get an EIN to limit your personal liability and assist with the issues I noted above. The decision whether to form an LLC or a corporation depends on several factors that are personal to each entrepreneur, so this requires a consultation.
I offer a low cost consultation and then will form an entity, issue a banking letter, and get an EIN and you will only pay the actual state formation fees, agent fees (if relevant), and publishing costs (if relevant). In total this will cost you similarly to the cost of online startup services but you will get an actual attorney doing it!
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Great idea to start your own business.
You have to speak with someone face to face. You have good questions and many more which can't be answered by email. Make an appointment with a local Small Business Administration adviser.
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