Posted by dutch on May 02, 2006 at 08:21:36:
A dba is different than a corp. Tax questions are much too complex to answer here, a competent CPA should be able to give you tax advice. Setting up a LLC or Corp to do this business IS SMART, but not necessarily for tax reasons, but for liabilty reasons. Sometimes the best for liability is not the best for taxes, and vica versa. One typically chooses the best option for both worlds.
If you are just starting, USUALLY, the best option is to start a LLC or S-Corp and do business under that entity. Once you get bigger and cash-fatter, then start to worry more about taxes and liability. And then you can afford better advice that what I just gave you.