llc, business-registration, iowaI would like to start a new business, but I’m currently not making any money yet (I haven’t even started producing anything). I’ve already decided on a name, registered a web domain, and think that I should register it as a business now before someone else does. Eventually, I think it would make sense to do an LLC (it’ll be a sole-proprietorship, I think). However, should I just register as a DBA for now wait to register LLC until I have a product I can role out? I don’t know when I’ll have my product ready (probably a few months to a year). I don’t want to incur too much expenses until I have something to ship.
Would you suggest registering LLC right away, doing DBA and turning it into LLC later, or just waiting to register anything until my product is finished? Ideally I’d like to start advertising for my product before it’s fully ready under the business’ new name, but I’m not sure if I need to have everything registered before then.
Also, in case it matters, I’m not currently planning on taking out any loans or looking for investors. I’ll try to bootstrap.
As far as laws go, I live in The United States (Iowa).
Thanks.
A rule of thumb when considering filing as an LLC is the following question: as of today, what could others sue you for?
If the answer is "nothing," don't bother filing (yet). However, as soon as you begin making money, or even writing off expenses on your tax returns, filing for an LLC (which also protects your personal belongings from the IRS in case your tax return goes awfully wrong) is strongly encouraged.
I noticed this line in your question:
I've already decided on a name, registered a web domain, and think that I should register it as a business now before someone else does.
Filing for an LLC shouldn't be your priority- filing for a trademark should, though. You did the right thing in getting the domain name first (even before the trademark). Now file for a trademark, and others would have a very hard time trying to take your name.
An LLC doesn't protect your ownership of the name. It just protects your personal property (i.e., house, money, etc.) from not being taken should you be on the losing end of a civil lawsuit.
Some more information can be found here.
An LLC has many advantages; can give your business more credibility and only some clients or buyers want to do business with a limited company.
If your site is requiring SSL,the green bar beside your domain providing a 128 bit secure website, then you are required to be a limited company.
I don’t know about the tax side as I’m from the UK.
My business is domain investing and if you are looking to TM, beware of any infringements between domain and TM.
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