A straightforward and typical structure for small firms is the single proprietorship. It’s simple to set up and keep running, and the owner has total authority over the company. You are personally liable for any business debts and responsibilities if your business is a sole proprietorship. This implies that if the company experiences financial difficulties, your personal assets may be at risk. On top of that, you must pay self-employment taxes on your business income.
A DBA, on the other hand, is only a technique to conduct business under a name other than your legal name. It offers no liability protection and does not establish a new legal organization. In other words, your personal assets may still be in danger if you are sued or your company accrues debt. What is the procedure for registering my business name? You must submit a DBA application if you intend to conduct business using a name other than your legal name. Although each state has its own requirements, most DBA registration procedures entail submitting a form and paying a fee. To let people know about your new company name, you might also need to make an announcement in the local newspaper.
Although it might be tough, starting your own business can be thrilling and gratifying. You should conduct research and write a business plan before you begin. Your target market, competitors, marketing approach, and financial projections should all be included in detail in this plan.
Once you have a strategy in place, you must decide on the legal framework for your company. As was already indicated, small firms frequently choose to operate as sole proprietorships. An LLC (Limited Liability Company), which offers liability protection for the owners, is something else you might want to think about.
Depending on the sort of LLC you are forming and the services you require, the cost to form an LLC in Arkansas varies. A domestic LLC must pay a $50 filing cost whereas a foreign LLC must pay a $300 filing charge. Additional charges could also apply for services like expedited processing or other ones.
In Arkansas, there is no franchise tax due from sole owners. However, based on their net worth or capital stock, LLCs and other business kinds are subject to franchise tax. The amount of the franchise tax is dependent on the assets of the company and is required each year.
A DBA is not the same as a sole proprietorship, to sum up. A DBA is merely a technique to carry on business under a different name, whereas a sole proprietorship is a legal structure for a company owned and run by one person. It’s crucial to do your homework and pick the best legal structure for your purposes when creating your own firm. Depending on the sort of LLC you want to form and the services you require, the fee will vary in Arkansas. Sole proprietors are also exempt from paying franchise tax there.
You can look up a company’s name in the online database maintained by the Arkansas Secretary of State to see who the company’s owners are. This will reveal details on the registered agent and the company’s proprietors. Additionally, you can look for business licenses and permits, which might have the owner’s details in them. To find out if someone owns a business, you can also look for their name in public records like court filings or property records.