Legal Question in Business Law in New York
Llc/dba
Hi,
Can an LLC start a DBA in New York State?
If so:
a) Does it need a separate tax id#?
b) What is the procedure to set it up?
Thanks,
--name removed--
2 Answers from Attorneys
Re: Llc/dba
Yes, an LLC can obtain a DBA in New York State.
A member of the LLC with signature authority has to go to the County Clerk's office in every county where the LLC/DBA does business and take the filing receipt that the State sent you. Pay the County Clerk the requisite fee from the LLC's checking account (it's somewhere around $30, I believe), show the Clerk the LLC's original filing receipt (let them take a photocopy of it if they want), and name the DBA for the LLC.
Assuming the name you choose is not taken within that county, the DBA is now formed.
The LLC will be paying taxes, so no, the DBA does not need a tax ID separate from the LLC's. The LLC does need a tax ID (a single member LLC often uses the member's social security number for this, which is entirely INappropriate). You can get tax IDs online for every business entity EXCEPT LLCs; LLCs must either phone, fax or mail a form to the IRS. You can learn about applying for EINs
Re: Llc/dba
Most of what Ms. Delain wrote in her response to you seems like it may be correct, but more information is needed, and she is incorrect about a one member LLC. A one member LLC is considered a disregarded entity for tax purposes. As such the single member is treated as if the legal entity did not exist. So, not only is it appropirate to use the single members tax ID #, you have no choice in the matter. As far as the DBA goes, it will depend on whether this LLC is a NY LLC or an LLC from another state. However, if you have two or more members and do have an EIN number, you do not need new one. If you would like to discuss this matter further, please do not hestiate to contact The Fidelis Law Group - [email protected]
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