It’s crucial to first comprehend that an LLC is a different legal entity from its owners. This implies that you can run many enterprises through your LLC without having to establish new legal entities for each one. You should be aware, nevertheless, that every organization will require its own unique accounting and tax documents.
A division or subsidiary for each firm is one technique to manage various ventures inside an LLC. Keeping your accounting and tax records organized and ensuring that each business is running separately can both benefit from this.
Another choice is to give each business a “doing business as” (DBA) name. You can conduct business under a name other than the legal name of your LLC by using a DBA, which is a fictitious name. If your LLC is known as “Acme Ventures LLC,” for instance, you may use a DBA name like “Acme Consulting” to run a different consulting firm.
Although a DBA is not the same as being self-employed, self-employed people frequently use it. Even if you run a business under a DBA name, you are still held accountable for its management and regarded as its owner. However, having a DBA can make it simpler to carry on business under a name that is distinct from your given name and can help to give your company a more professional appearance.
You must still pay taxes on your income even if you run a business under a DBA name. Your particular circumstances, including your income level, business expenses, and tax deductions, will determine how much money you should set away for taxes.
It’s a good idea to set aside at least 25–30% of your income for taxes as a general guideline. This will make it more likely that you’ll have enough cash on hand to cover your tax obligation when it’s due.
A doctorate in business administration, or DBA, is the highest level of education available in this field. A DBA degree can be an excellent option for you if you want to work in academics or research. However, a degree is not required if all you want to do is run a business under a DBA name. Can a DBA Have Two Owners As a Result?
A DBA may really have two owners. It’s crucial to remember that each owner will continue to be accountable for the company’s operations and debts. If you’re thinking about launching a business with a partner, you might want to think about creating an LLC instead because it can offer more liability protection and make it simpler to run the business.
Your complete legal name should come first in your DBA (doing business as) writing, followed by the name of your company. To utilize the DBA name “Smith Consulting,” for instance, if your legal name is John Smith, you would write “John Smith doing business as Smith Consulting.” It’s crucial to keep in mind that each state may have different rules for registering a DBA name, so you should always check with your local government office for details.