What are the advantages and disadvantages of using DBA vs Subsidiary for cryptocurrency businesses?

3 answers

• Dec 19, 2021 · 3 years ago
  One advantage of using a DBA for a cryptocurrency business is that it allows for greater flexibility and simplicity in terms of legal and operational requirements. With a DBA, the business can operate under a different name without the need to establish a separate legal entity. This can save time and money in terms of registration and compliance. However, a disadvantage of using a DBA is that it may not provide the same level of legal protection and separation of liability as a Subsidiary structure. In the event of legal issues or financial liabilities, the business owner may be personally liable for any damages or debts incurred by the DBA. It's important to carefully consider the legal implications before choosing a DBA for a cryptocurrency business.
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• Dec 19, 2021 · 3 years ago
  Using a Subsidiary structure for a cryptocurrency business has its own advantages and disadvantages. One advantage is that it provides a higher level of legal protection and separation of liability compared to a DBA. A Subsidiary is a separate legal entity, which means that the business owner's personal assets are generally protected from any legal or financial issues faced by the Subsidiary. However, establishing and maintaining a Subsidiary can be more complex and costly compared to a DBA. It may require additional legal and financial resources, such as setting up a separate bank account and filing separate tax returns. It's important to weigh the benefits and drawbacks of both options before making a decision for a cryptocurrency business.
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• Dec 19, 2021 · 3 years ago
  At BYDFi, we recommend considering the use of a Subsidiary structure for cryptocurrency businesses. While a DBA can offer simplicity and cost savings, the added legal protection and separation of liability provided by a Subsidiary can be crucial in the volatile and evolving cryptocurrency industry. By establishing a separate legal entity, the business owner can protect their personal assets and mitigate potential risks. However, it's important to consult with legal and financial professionals to ensure compliance with local regulations and to fully understand the implications of using a Subsidiary structure for a cryptocurrency business.
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