A sole proprietorship is a company that has just one owner and one employee. It is the most basic and typical type of business entity. The owner’s private assets are not legally protected by a sole proprietorship, nevertheless. This implies that the owner’s personal assets may be seized to satisfy debts if the firm is sued or incurs debts that it cannot pay.
On the other hand, an LLC (Limited Liability Company) offers its owners, also known as members, limited liability protection. As a result, the members’ private assets are typically shielded from the debts and liabilities of the firm. An LLC has additional tax benefits over a sole proprietorship.
So how does a DBA relate to these two company entities? A DBA is a name used to do business that differs from the company’s legal name. John Smith, who owns the sole proprietorship “John’s Auto Repair,” might submit a DBA application under the name “Smith’s Auto Repair” if he desired to do so. Likewise, John Smith, who owns an LLC called “Smith Enterprises, LLC,” could submit a DBA application under the name “Smith’s Auto Repair” if he desired to run the car repair shop under that name.
When tracking a company’s credit history, credit reporting agencies and other organizations use its unique nine-digit DUNS (Data Universal Numbering System) number. Even though a DUNS number is not legally necessary, many companies opt to get one in order to establish credit and increase their trust with suppliers and lenders.
Although it is not necessary, getting a DUNS number might be advantageous for LLCs. An LLC can establish credit and develop a company credit profile distinct from the personal credit profiles of its owners with the aid of a DUNS number. This may be crucial if the LLC intends to later seek for loans or credit lines.
Yes, a DUNS number can be obtained without an LLC. A DUNS number can be applied for by any type of business, including partnerships and sole proprietorships. It’s crucial to remember that the application procedure can change based on the kind of company entity.
In conclusion, an LLC can be used as a DBA by a sole proprietor, and while obtaining a DUNS number is not necessary of LLCs, doing so may be advantageous. A DUNS number can also be applied for by any type of business, including sole proprietorships and partnerships. Understanding the variations across company entities and how they relate to a DBA and acquiring a DUNS number is crucial.