Lancaster, CA asked in Business Formation and Business Law for California

Q: I want to start an online business. DBA, LLC, both, neither?

I will not be selling products. I will offer a service which will pay me a finders fee as compensation. I will be conducting the business from home/online. No employees. Do I need to register a DBA, get a license, LLC? Im in California

2 Lawyer Answers
Shawn R. Jackson
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Answered
  • Rohnert Park, CA
  • Licensed in California

A: As is often the case, the answer is "it depends" ... upon [1] your exposure to liability ... [2] your management structure ... and the [3] the scope of your services ... the next step would be for you to schedule at least two free initial consultations by video call or telephone call.

James L. Arrasmith
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Answered
  • Sacramento, CA
  • Licensed in California

A: In California, if you are operating a business under a name that is different from your legal name, you are required to file a DBA (Doing Business As) statement with the county clerk's office in the county where your business is located.

However, if you want to protect your personal assets from potential liabilities associated with your business, you may want to consider forming an LLC (Limited Liability Company). An LLC provides a level of legal protection to its owners, known as members, by separating personal assets from the company's assets. It also offers flexibility in terms of how the business is managed and how it is taxed.

In your case, since you are not selling products and will be conducting business from home/online, it may not be required to form an LLC, but it is still a good idea to consult with a business attorney or accountant to determine the best structure for your business and any licensing or permitting requirements that may apply to your specific industry or location.

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