Online Business Review- Are You Incorporated
WHAT IS THE STATUS OF YOUR BUSINESS ENTITY
DBA (Doing business as)
Have you ever heard of this designation before? If you haven’t, it is time for you to start thinking about it. If you were NOT reading this, you may not need to know anything else regarding this topic. (However, how can you know you are NOT reading this unless you are???)
Doing Business As simply refers to being in business and using another name to be working your business under. For example, my name is Stephen Sampson. If I were doing some task only once a month when it was needed for extra money, I may just have someone write a check to me and I put it in my personal checking account. However, if I were doing a certain job and advertising for that work on a regular basis, I may desire to have a business name registered with the State. Let’s say I bought a back-hoe and did excavating for land owners. I might name my business: SAMPSON EXCATOR SERVICES. When someone wrote me a check, I would have them write it to: SAMPSON EXCATOR SERVICES. My bank account my be titled: STEPHEN SAMPSON dba SAMPSON EXCATOR SERVICES.
IS YOUR ONLINE BUSINESS INCORPORATED
The next step up in the business community is the status of incorporation. This is when you have decided you are serious about your E-Commerce Business.
Without getting carried away with what Corporations are, the types of corporations and how they got started, let it be sufficient to say that corporations are a separate legal structure separate from yourself. If you are doing a business under a corporate structure, not only are you showing that you are serious about your business but you are also protecting yourself from liability.
In the article (Online Business Review- Are You Set For Business), I wrote the following:
In this article and the next one I will write (Online Business Review- Are You Incorporated), I will be discussing a limited aspect of getting ready to conduct a business (and for our reference, an online business).
Depending on the type of business, the intensity of the business or other factors, you may find yourself in need of setting up a Corporate Entity Structure. Some businesses are on the edge of lawsuit attraction. This is definitely a need for structuring a Corporate Entity. This is not a replacement for proper Insurance (which is industry specific) but what it does is limit your liability to the Corporation. (This protects your personal assets from legal claims.)
Other than protecting yourself from liability, what other reason would you decide to incorporate?
I was on a conference call for another business (picking up some training- hint) and the presenter was talking about setting up a business entity. His reason? Very simple.
Are you in Business and do you want people to take you seriously?