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Dba

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pathomp

Junior Member
What is the name of your state? New York

I own an incorporated (S-Corp) Web publishing company. I want to create several DBAs, each with it's own EIN, yet I'd like the DBAs to be under the umbrella of my S-Corp. Is this possible and legal?

Thank you.

Jim
 


seniorjudge

Senior Member
What is the name of your state? New York

I own an incorporated (S-Corp) Web publishing company. I want to create several DBAs, each with it's own EIN, yet I'd like the DBAs to be under the umbrella of my S-Corp. Is this possible and legal?

Thank you.

Jim
Sure...this is done thousands of times a day.
 

pathomp

Junior Member
OK. I already have an EIN for the DBA. Should I incorporate the DBA or is it covered under my S-Corp? If so, what llnks the two legally?
 

seniorjudge

Senior Member
OK. I already have an EIN for the DBA. Should I incorporate the DBA or is it covered under my S-Corp? If so, what llnks the two legally?
You are confused.

If I have a corporation, ABC Corp., I can operate under a fictitious name. E.g., ABC Corp. dba Jim's Landscaping.

As far as the EINs, you would have to ask your tax attorney about that.

I can't understand why you'd have an EIN for Jim's Landscaping since you already have one for ABC Corp.
 

pathomp

Junior Member
Thanks, but I haven't been confused since I was a teenager. Because of the nature of my web publishing business, I'm required to have a new entity wiith it's own EIN for which I'm too tired to explain. All I'm trying to ascertain is whether or not I have to legally incorporate in the state of NY or just file a Certificate of Assumed Name with the County (New York) I'm "doing business as" in.

Thanks for your input.
 

clueless3

Member
I want to create several DBAs, each with it's own EIN, yet I'd like the DBAs to be under the umbrella of my S-Corp. Is this possible and legal?
Yes, it's legal and it's possible. In IRS FORM SS-4, on LINE 1 you enter the name of the S-Corp; on LINE 2 you enter the name of the DBA. You need to file a SEPARATE FORM SS-4 for each DBA that you wish to apply for the EIN.

OK. I already have an EIN for the DBA. Should I incorporate the DBA or is it covered under my S-Corp?
I think you're confused. The "DBA" is an ALTER-EGO of the S-Corp. When you file the "DBA", you file it with the COUNTY in which the DBA has its principal place of business. Let's say your S-Corp is called "Honda Motor Corp". You file a DBA called "Honda Finance" with the County. Then you file another DBA called "Honda Service". They are entities of the same S-Corp. You do not need to incorporate the DBAs!

what llnks the two legally?
If you file the DBAs this way, the link is in the DBA form that you file with the County, in which you specify the NAME of the S-Corp and the NAMES of the DBAs. Also, in the RESOLUTION book of your S-Corp, you specify the date and the names of the DBAs that you created; that also serves as a link. There are OTHER ways to link the separate entities too (through ownership and such) by using LLCs, but this can get expensive.

Now, each DBA should have its own bank account. And, if you apply for the EIN for each DBA, each entity with the EIN needs to file a tax return at the end of the year. This can be a real CHORE.

Do you REALLY want to have a separate EIN (and file a tax return) for each DBA???

To simplify the matters, you can simply have a separate bank account for each DBA and NOT apply for a separate EIN for each DBA. The S-Corp can simply file ONE tax return at the end of the year, using income statements from all DBAs.

What is your reason for wanting to "link" the entities? Is it a logical reason or simply aesthetic reason?
 

seniorjudge

Senior Member
Thanks, but I haven't been confused since I was a teenager. Because of the nature of my web publishing business, I'm required to have a new entity wiith it's own EIN for which I'm too tired to explain. All I'm trying to ascertain is whether or not I have to legally incorporate in the state of NY or just file a Certificate of Assumed Name with the County (New York) I'm "doing business as" in.

Thanks for your input.

Hmmm....I am more confused now than I ever was as a teenager!

Anyway, I think you can just file your fictitious name certificate.

As long as you pay your taxes, they won't bother you.
 

pathomp

Junior Member
Thank you clueless3 and Seniorjudge. That does help to clarify what I need to know to proceed forward.
 

pathomp

Junior Member
To clueless3:

What is your reason for wanting to "link" the entities? Is it a logical reason or simply aesthetic reason?

I have several accounts with a online domain parking program. I prefer to represent each as a company (DBA) rather than use my own name. Because of that choice the 'payer' requires that the 'payee (DBA)' supply an EIN. Simple as that.

You did answer my question though concerning the 'linking' and 'incorporating' issue .


Thanks again.
 
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