27 Aug Why You Should Ditch Your DBA.
So you’re operating under a dba… it’s ok, a lot of people do it. You start your thing – doing business as, well – yourself. A sole proprietor aka me doing business as (insert my cool company name). It’s fine for a while. But remember that dream you had as a kid, where you find yourself in class with no clothes on? Yep, if you are doing biz with a dba – you’re that naked kid.
When you land that first big contract, you need to think twice about the dba. It’s simple and easy but, you are ridiculously unprotected. If anything goes wrong (and yes, things do go south) that big client can take everything you own, and the legal bills alone will sink you.
Take for example our friend, Sam, who just decided to ditch her dba for a proper, full protection LLC. She signed a large contract with a high profile hotel to run a BIG upcoming event. Under her dba, if a guest were to meet with an unfortunate experience – and yes we’ve all been there especially when alcohol is involved – the hotel management would come knocking on her door to pay the medical bills, and might even sue her for negligence. She would have no protection for her personal assets, like her house, car, savings accounts, etc.
Sam called Legal Garage for help. A few days, and $595 (plus filing fees) later, Sam had a super strong, customized LLC formation that serves as a shield against any unfortunate random events that would cause clients to come after her personal assets. Now, she’s fully protected.
Beyond the legal protection of the LLC (if that’s right for you) clients just take you more seriously if you’ve done the proper formation. So the formation makes you super legit and also covers you a** when sh*t hits the fan.
Legal Garage is here to help you start up without screwing up!