I run a small webhosting business. I made up a name, let's call it HostFred.com. I also do web development work. I sometimes get checks made out to HostFred. I am able to cash those sometimes, via international money changers or some such, but generally I ask my clients to write out checks in my personal name.

But I can see some advantages to having a registered DBA and also a federal EIN. Then I could have a bank account (and PayPal) with the name HostFred and then look more professional -- checks would then be OK.

I found a site that will register my DBA (in Michigan where I need it) and also create an LLC and also get me an EIN, for around $200.

Is this what others do? Any other suggestions?

Yes I did an S corporation when I did contracting.

Just be aware you'll need to file an annual report, a tax return for it, and may need to pay for one or two types of insurance depending upon your state.

I recommend that you ask local qualified resources for qualified advice. For example, in the USA, there is "SCORE" – a society of retired business executives who professionally help small businesses. (You can, for example, get initial legal counsel for free. Also, "inside tracks" to business loans.) You might also find a friendly local lawyer who, if you simply call them up, will point you in the right direction at no charge. Also check out resources like the local Chamber of Commerce.

Remember that, although this territory is unfamiliar to you, it is certainly not unfamiliar to them. And they are ready to help. Because, "what you don't know [yet ...] can hurt you." Unnecessarily.

For my business, I quickly set up an "LLC," which in the State of Georgia (USA) can be done online in a few minutes – with an annual modest re-registration fee. Also online, I obtained an EIN from the IRS. The taxes for the LLC can be processed separately or they can be folded into your personal tax return. But, it is "a separate legal entity," not "an individual." Most companies will not choose to make any sort of contract with "an individual."

Purchase accounting software and use it. For Windows, "QuickBooks™" is pretty much the de-facto standard. On the Mac, I use "AccountEdge™" with equal success and satisfaction. Open a checking account in the name of the LLC. In short, do everything "at arm's length" from yourself as an individual.

You should use the software to "write payroll checks to yourself" and to "deduct from yourself." The software will tell you when you need to send tax payments to the authorities – and, you do. These seemingly "little things" actually mean a very lot.

The late Herman Holtz (nee: Hermann Holz ... he was German) wrote a number of excellent books on small business and contracting, including a description of "task orders," "change orders," and umbrella "general service agreements (GSAs)" which I promptly took to heart. This discipline helped me to avoid several tight spots.

Very interesting.

Could you give an example? I have actually been doing this for 15 years with no problems. To make an S Corp. or LLC just sounds to me like more paperwork to file for the IRS and the only real advantage being that I could get a bank account in that name.

I have insurance in my name and my business expenses (deductions etc.) wouldn't be changing, so I don't yet follow what would be the advantage.

I think this would be an ideal question to discuss with a competent lawyer who's knowledgeable business law.

An hour consultation would like be well worth the cost.

In my opinion, you've hit on one advantage and understood the additional efforts that may not be worth your while. I used an attorney's office to create my S Corp and used an accountant to ensure I followed all the required filings. It's extra cost, where it doesn't sound beneficial for someone who has been doing a DBA for this span of time. Just be clear to clients how to pay you, nothing wrong with telling them to pay to a DBA, it's a perfectly legal business org.

I also do not pretend to be someone to "give legal advice," other than what I have followed. "Companies" generally only want to deal with "companies." The LLC (or the S-Corp) is an easy way to put "your business dealings" at arm's length from "your family dealings," both in terms of paperwork and potential legal liability.

Your customers deal with "your sock-puppet," and they are very happy so to do. You maintain clearly-separate accounting for "your sock-puppet," and from time to time you "pay yourself." (And do withholding on yourself, and, quarterly, pay them to the government just like "your former employer" did. Your accounting software handles this when you write a "payroll check.") Some of your daily expenses are "personal," while others are "business expenses." Some of the things in your house are personal, while others are "business assets" that might be subject to "depreciation." And, so on.

The only time that "a company" really wants to have to deal with "an individual" is when that "individual" is an employee. The applicable laws in that situation are very clear. They are not at all "clear" when the is asked to "do business with" a "DBA."

In my home state of Georgia, you can immediately establish a legally-recognized LLC on line, immediately and at zero cost, and thereafter pay a nominal annual re-registratiion fee. Whether or not you thereafter properly manage the accounting is up to you (and the IRS).

A limited liability company (LLC) and S-Corp are different entities. A LLC protects the companies debts from personal assets. An S corporation is a tax classification and an LLC can be taxed as a S corporation. There are certain advantages to being an S corporation but taxes are a lot more complicated and would also suggest asking a CPA.

Any work outside of being an employee for another person's company should always be incorporated (hobbies aside). Sole Proprietor gives zero legal or tax protection/benefits. Research the difference between LLC, C-Corp and S-Corp, also seriously look into incorporating in Nevada for tax and privacy purposes, you don't have to incorporate in your home state, you can have your company in let's say Nevada and then also register in your home state, however, if any legal issues arise or even for fed. taxes you are protected by Nevada's inc. laws which are very strong. Each state is different, now you know why most banks are incorporated in Delaware its a good state for banks etc...

Inc and Grow Rich is a great book that introduces alot and answers many questions. https://www.amazon.com/Incorporate-G...8548063&sr=8-1

Also, Cort Christie's book: https://www.amazon.com/Nevada-Edge-C.../dp/B01E7EU75C

PS: Use a registered agent, the slight expense is worth the privacy of using their address and not your home address etc...