Creating the business (part 2)
Updated: Dec 20, 2019
So if you remember from my last post, I was speaking about the delays in getting the business registered. The business license finally shows up near the end of February. However, during all of these delays, I discover that it is common to add a Doing Business As (DBA) designation to make a business name more human-friendly for transaction purposes. During this time, I had created a logo that I believe resembled an imprint logo, so I decided to create the DBA that lined up with the logo's origins. In my mind, the DBA would serve as an alias; this is not the case. Formally, the DBA is treated as a separate business entity in many respects, I can do consolidated reporting for tax purposes, but it is optional. So after registering the DBA with my SoS office, I ended up receiving the same doing business letter and had to file another business registration with my state tax office.
Now I have to fill out a new version of the three-page form to register the DBA and receive a new business registration from the state. Fortunately, my state has several regional offices, so I hop in the car and take a twenty-minute ride to file this registration in person. If you register in person, you have your registration when you walk out the door, as I am getting close to release date, I need to update this information with a couple of entities including the bank that I started an account with for this exercise.
Now for the devil in the details.
I pay the online legal document copy nearly $700 for service where I did much of the work, in a situation where it turns out that my state has a form and it is only a $150 filing fee. Then, because of what I learned while stuck to limbo due to an algorithm I end up filing a separate DBA and second tax registrations form. It was $25 for the DBA and $30 times two for the tax registration. Additionally, some of the articles that I read suggested using a separate agent service to field certain documentation issues to the tune of $250 per year. I have received maybe two notifications from them thus far, but not sure if this is worth the money either.
The reason the DBA fee could have been free is that it could have been part of the original LLC filing for no additional charge. Had I bothered to do 5-minutes worth of research I would have found the form and thought of the DBA at the time of filing because it would have been staring me in the face. I took the recommendation of a friend, still a friend, to use the legal document service company because of her experience, but the quality of service has changed and not for the better. So now I have a cute binder as a souvenir of this learning experience and an embossing stamp that I will likely never use.
For obvious reasons, your savings could vary by more or less than mine. If you are reading this, you are more than capable of saving yourself a great deal of money that could be used for other purposes. Fortunately, I made up quite a bit of this money in other parts of this endeavor. I will talk about some of those savings in a future post.
Next up, the path of the book itself. Finding an editor.
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