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Message: <blockquote data-quote="tf360" data-source="post: 1737570" data-attributes="member: 2105">Technically, a dba should only be used by a sole proprietorship, i.e. a business owned by one individual. The individual and the business are separate entities; however unlike a partnership or a corporation, creditors can pursue the business AND the individual for any debts. Furthermore, the business' income is taxed on the individual level. That means that the business is required to file a Schedule C on an income tax return and any net profit made by the business is subject to Social Security Tax, currently 15.3%. T/A or trading as is generally used by partnerships and corporations to distinguish themselves as a different entity. In some instances, creditors can pursue individual partners for the debts of the partnership, all depending upon the type of partnership established, i.e. general partnership, limited partnership, etc. You as an individual receive income from the partnership through a K-1, a schedule reporting the net profit of the partnership which is in its simplest terms divided up between the partners according to their ownership percentage.The last entity is a corporation. Unlike the preceding two entities, the individual is not responsible for the debts of the corporation, except in some certain circumstances, such as committing fraud or non payment of payroll taxes. The officer of the corporation, i.e. its president is treated and paid as an employee, unless you have an 1120S corporation which is geared for small businesses that gross under $5 million in receipts on an annual basis. In the latter instance, the individual is entitled to the benefits of incorporating but is taxed as an individual. Hope that helps without being too technical.</blockquote>

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