DBA to rent out spare room

[Mehran K.]

Hi all, my tax question isn't as complex as many I've been reading here. Just looking for some advice.

I'm about to close escrow on my first home (primary residence) soon! I plan on renting out one of the rooms to a tenant, and using the other spare room as a home office for that business.

After some research I've decided to just do this as a Sole Proprieter (DBA) so things can seem more professional. Seemed like an LLC would be nice to protect my personal assets, but for my situation I think it would just cost too much. What do you think? I plan on getting a separate business account for all my transactions that involve the business.

Questions:
1. For this situation is there any benefit to getting a separate Tax ID for my business? If so please explain?
2. Can I establish business credit on a DBA with a separate tax ID? or is that just for LLC's and above?

Any advice/pointers would be appreciated also! Thanks so much in advance.

Mehran

[Daniel R.]

Mehran- more important than anything else is you have a good relationship with the person renting the room

Andrea-

Your own room with a large window & closet. The room is next to the upstairs bathroom with an upstairs view of the back of the house. Male roommates only please; sorry ladies nothing personal just that I am a guy so it's easier to handle this way.

The house is a two-story 2100 sq. ft. residence on a good lot with easy access to San Jacinto College and Beltway 8/ Hwy 90. The house has four bedrooms, all upstairs. Amenities include digital cable, wireless internet, washer & dryer, refrigerator, attached garage, large living room and a full kitchen. Quiet neighborhood and a quiet house with easy access to restaurants and major highways (20 MINUTES TO DOWNTOWN!)...

Room will become available December 17, 2011.

Rent is $___ per month plus an equal share of the utilities. (split utilities per person averages about $___, thus total rent & utilities runs between $___ to $___ per month)
$300 deposit required, payment plans available. Or flat rate if that's preferred.

The best way to reach me is by cell phone or email. You must have your own vehicle and have steady income. Out of country residents need not apply as all applicants will need to meet in person to see the house and room before consideration. Thank you.

Daniel Roddy

Home is in the _________ subdivision. (see Google link below)

This a great opportunity to save money.