Hi George, great question! Understanding business structures is crucial for tax and liability purposes. Here’s a breakdown of the key differences.

An LLC, or Limited Liability Company, provides limited liability protection, meaning your personal assets are generally protected from business debts and lawsuits. LLCs can be taxed as a sole proprietorship, partnership, or even an S-Corp, giving flexibility in how income is reported.

An S-Corp, or S Corporation, is a tax designation that allows business profits and losses to pass through to the owner’s personal tax return, avoiding double taxation at both the corporate and personal level. It may also provide self-employment tax benefits for owners who take a reasonable salary. Unlike an LLC, it has strict IRS requirements, such as a limit of 100 shareholders.

A DBA, or Doing Business As, isn’t a legal entity—it’s simply a trade name that allows a sole proprietor or business to operate under a different name. A DBA doesn’t offer liability protection or tax benefits on its own.

Choosing the right structure depends on your business goals, tax situation, and liability concerns. If you’d like personalized guidance, feel free to reach out.