Today’s money tip will help new business owners decide how to structure their businesses. There are a few options to choose from and since it will definitely have an affect on your company, it’s important to work with a financial expert who will help you choose wisely. A DBA, or “doing business as,” is a type of sole proprietorship. It’s less expensive to register a DBA than other types of business entities, but a DBA does not offer you the liability protection of a corporation or LLC. If you’re low on start-up resources, or don’t have a lot of personal assets to protect, this might be a good option for you. But if you require more liability protection, a limited liability company, or LLC, is a better choice. It’s a separate business entity, meaning the assets of the company are the only financial liabilities at risk — the assets of the owners or “members” are protected. A LLC costs more to register than a DBA. Every business is different and it’s important to know your options. If you need expert advice, stop by your local bank where you’ll find professionals that specialize in helping small businesses.

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