Can an LLC and DBA Have the Same Name? Explained

One of the initial choices you need to make when beginning a business is deciding on a name. Even though you may have already chosen a name for your company, you are now thinking about filing as an LLC or using a DBA. The answer to your question is yes, but there are a few things you need to be aware of before your LLC and DBA use the same name.

A DBA is not the same as an LLC. A DBA is a name under which a business conducts business, whereas an LLC is a legal structure that offers personal liability protection for its owners. For instance, if you are the owner of a company called “ABC Consulting LLC,” you can file a DBA under the name “ABC Consulting” and use that name to do business.

However, it’s crucial to remember that, unlike an LLC, registering a DBA does not offer personal liability protection. Therefore, your personal assets may be at risk if you run your business behind a DBA and someone sues you.

Let’s now discuss the following query: “How do I pay myself from my LLC?” You have a variety of ways to pay yourself as an LLC owner. You can draw a salary from yourself, accept a draw, or get distributions. You must set up payroll for your company if you decide to pay yourself a salary. If you decide to take a draw or get dividends, you must ensure that your company is making enough money to cover these payments.

Let’s go on to the following query: “Furthermore, does a DBA file a separate tax return?” No, is the response. A DBA does not file a separate tax return because it is not a separate legal entity. Instead, your personal tax return is used to disclose the revenue and costs of your DBA. Last but not least, answering the question “Then, what is better LLC or sole proprietorship?” can be a little challenging. Your unique scenario and company requirements will determine this. The simplest and least expensive business entity to set up is a sole proprietorship, however this does not protect against personal liability. On the other hand, an LLC offers personal liability protection but may cost more to establish and operate. The best way to decide which choice is best for you is to speak with a business attorney or accountant. The final question is, “Accordingly, can you have multiple businesses under one EIN?” Yes, you are allowed to operate more than one firm under a single EIN. But every firm must be organized as a distinct legal organization, like an LLC or corporation. Your personal assets may be at danger if you run many businesses using the same EIN without creating distinct legal corporations.

Conclusion: Even though an LLC and DBA can share the same name, it’s crucial to comprehend the distinctions between the two and the repercussions associated with each. To be sure you are making the greatest choices for your unique business needs, be sure to speak with a business attorney or accountant.