What type of business entity are you

[2000intow]

Currently I'm registered as a DBA and lately ive been contemplating more on forming a type of LLC (putting my properties in a holdings company) Just curious what others are doing?

[Split Second Towing]

Get the hell out of the DBA as soon as you can. WAY too many reasons too be an S corp or an LLC and very few advantages to being a DBA. The obvious is liability, I wont tell you cuz im sure you know, but its the little things you might not think of.....mine was a divorce....I was a DBA and when I got served it was the beginning of almost the end of my towing company. Talk to a lawyer, trust me. thank me later. It's always when it comes at you from a direction you WERENT expecting it to come from that will get you.

[goodmichael]

On ‎3‎/‎29‎/‎2018 at 5:29 PM, Split Second Towing said:

Get the hell out of the DBA as soon as you can. WAY too many reasons too be an S corp or an LLC and very few advantages to being a DBA. The obvious is liability, I wont tell you cuz im sure you know, but its the little things you might not think of.....mine was a divorce....I was a DBA and when I got served it was the beginning of almost the end of my towing company. Talk to a lawyer, trust me. thank me later. It's always when it comes at you from a direction you WERENT expecting it to come from that will get you.

VERY sound advice.

[DodgeTowGuy134]

I'd suggest that you run your "business operations" under one LLC/S-Corp and then a separate LLC/S-Corp as a "Holdings Group" that has the ownership to your property, such as real estate, trucks, equipment, etc. This method works extremely well, as long as you don't "puncture the corporate veil" and that you keep things separate, such as making sure that your "operating entity" makes "rent/lease" payments to your "holdings group".

 

I'm not currently an attorney, nor do I represent to be one, but this has been a successful method for me.

[EKYtow55]

We were a regular (C) Corporation and had a separate DBA Leasing Co. that owns the real estate, & equipment, but recently my CPA had us changed to a Sub Chapter (S) Corporation.

 

 

 

[2000intow]

thanks for the input everyone...Going to start getting these wheels rolling, google and youtube  have also helped with saving me trips and calls to the accountant.

[Towguy509]

Llc or S corp only way to go, an llc is considered a seperate entity which means if for any reason your company gets sued they can only go after your LLC, otherwise your personal property/self will be in jeopardy. Llc only cost $200 and very easy to start up.

 

Good luck