A DBA is simpler to set up. Also, is very simple for taxes, you just report your profits as income. An LLC is more involved, it has it's own tax return, and there are tax consequences. You would have to see a tax professional to determine if the LLC is right for you or not.
You don't NEED an LLC to use stealth. But your bank must accept your DBA certificate to open a business checking account. Some banks don't. But in my experience, most WILL. Bank of America does, and so do Harris Bank, WoodForest and Charter One.
To go the DBA route, all you do is contact the Recorder's office in your county. They can tell you what you need to do to file. Usually, it is a 1 page form, very easy to fill out and costs very little. Then, they give you an Assumed Name Certificate. That is what you will need to fax to your bank.
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