The term “doing business as” (DBA) refers to a business entity’s use of an assumed or fictitious name that differs from the one that is registered in the public records. The terms “trade name,” “assumed business name,” and “fictitious business name” are also frequently used to describe it. However, a Limited Liability Company, or LLC, is a well-liked corporate form that safeguards its owners’ personal assets in the event of business liability. The question of whether an LLC can add a DBA now arises.
Yes, it is the answer. One or more DBAs may be connected to an LLC. Businesses frequently use DBAs to conduct operations under various brand names or provide various services. For instance, if an LLC with the name “Smith Enterprises LLC” wants to conduct business as “Smith Marketing,” it can submit a DBA to the state and use the name “Smith Marketing” for that particular business activity. It’s crucial to understand that a DBA does not establish a new legal company. It is merely a name that the LLC uses for administrative purposes.
An LLC may be connected to many DBAs in this regard. It enables the company to run under many brand names or provide various services without establishing distinct legal companies. For instance, if “Smith Enterprises LLC” wants to conduct business under the brand names “Smith Marketing” and “Smith Consulting,” it can submit two distinct DBAs for each name and utilize them for the appropriate commercial endeavors.
Taking this into account, the choice to have several LLCs or DBAs is influenced by a number of variables, including the type of business, the sector, the size of the company, and the type of services provided. Multiple LLCs can provide extra security for individual assets and liability separation, but they also come with additional paperwork and legal requirements. However, while having many DBAs can simplify marketing and corporate operations, it does not provide the same level of asset protection as an LLC.
Having a DBA has a few drawbacks in line with this. First off, a DBA does not establish a new legal organization, and the LLC is still in charge of all commercial operations carried out under the DBA. Second, a DBA does not provide an LLC with the same amount of liability protection. Thirdly, additional documentation and fees, which may differ by state, are needed to file a DBA.
Therefore, if the LLC has two owners, a DBA may also have two owners. A DBA is merely a name under which the LLC does business; the LLC is still the official party in charge of all commercial dealings. As a result, the LLC and the DBA both have the same ownership.
In conclusion, an LLC may be connected to one or more DBAs. Businesses can use it as a tool to run under various brand names or provide various services. It’s crucial to realize that a DBA does not establish a distinct legal company and does not provide an LLC with the same level of liability protection. The choice to create several LLCs or DBAs is based on a number of variables, thus it is advised to seek legal advice before making any decisions.
As long as they are not engaged in the same type of commerce and industry, two companies may share a DBA name. To prevent any legal difficulties or consumer confusion, it is usually advised to perform a comprehensive check to make sure the DBA name is not already in use.