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LLC with multiple DBAs?

Discussion in 'Business & Tax Advice' started by azxten, Nov 3, 2009.

  1. azxten

    azxten Junior Member

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    So I just started an LLC and I want to have multiple DBA accounts under it that are completely independent in a sense. What I mean is they will each have a separate bank account, etc.

    I read somewhere that this can create an "accounting nightmare" but I'm not sure why that is. If the DBA is registered for the LLC wouldn't all these individual DBAs just be "pass through" for tax purposes to the LLC? Meaning all the profits and loses in each bank account simply get added up to determine the LLC profits and loses?

    Do I have to report each individual DBA on my taxes or something or will I only have to list the totals for the LLC?
     
  2. ddawg0169

    ddawg0169 Newbie

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    Here's what I'm thinking: on a federal level, big brother doesn't care at all about your DBA's. Just like they don't care about your LLC. They're both only exist on the state level. Assuming you didn't elect corporate tax treatment, your LLC is taxed as a sole proprietorship. Which means, yes, you can take all your DBA's under that LLC, and consolidate profits/losses into one Schedule C. Since it's all "pass-through", your 1040 and Schedule SE taxes will add up the same even if you filed separately.

    On a general state level, I keep seeing that "if you have more than one business, file a separate schedule C for each business." Of course no one ever defines what a "business" is. But you do not get new EIN's for each DBA. It's just your LLC that gets one. So I don't see any reason why you would have to split out your DBA's on state taxes.
     
  3. nipit007

    nipit007 Junior Member

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    You should always talk to your tax advisor first. Then you will know exactly what you are getting into..Better to step around the cow pile that step into it and then try to get out.
     
  4. liquidrage

    liquidrage Junior Member

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    What is DBA? Is that like if your name is bob smith and you are a car salesman and so you say your name is bob car or bob sale or something? Just asking
     
  5. ikorky

    ikorky Junior Member

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    I dont think its a problem you can have several DBA's several Bank accounts, as long as you file everything under the LLC Legal name and pay taxes it doesn't matter. I have 2 DBA's Ac Factory Outlet and Heat And Cool. I have 4 bank accounts and still file taxes and do everything under my legal name which is Universal Environmental Products
     
  6. mr.breakit

    mr.breakit Jr. VIP Jr. VIP Premium Member

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    have at it with the DBA ther should not be a problem just make sure the bank understands that and are you talking about having several DBA's and people making checks out to them under the DBA
     
  7. liquidrage

    liquidrage Junior Member

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    Can you use a DBA as like a fake name like if I was Jason smith could I use DBA of Jason Cash or some corny shit like that?