The terms “LLC” and “DBA” may be familiar to you if you own a business. Limited Liability Company, or LLC, is a sort of corporate organization that shields its owners from personal liability. Contrarily, DBA stands for “Doing Business As” and is essentially a trade name or false identity that a business uses to conduct business.
The question of whether one LLC can have several DBAs now emerges. Yes, it is the answer. A firm may choose to operate under various identities for branding or marketing reasons, therefore an LLC can have multiple DBAs. For instance, a clothes-selling LLC may use different DBAs for women’s and men’s clothing.
Is having many DBAs or LLCs preferable? Depending on your company’s objectives and demands. To reduce liability, it can be preferable to form separate LLCs for each of your unconnected enterprises. However, having one LLC with many DBAs may be more convenient and cost-effective if you run several linked firms.
So how can you create several firms within a single LLC? For any name you want to use, you must submit a DBA with your state government in order to accomplish this. Additionally, you must confirm that the DBA names aren’t already in use. You are able to use your DBA name to do business once it has been registered.
Is it possible to have several DBAs under one EIN? Yes, under a single EIN (Employer Identification Number), you may have several DBAs. The IRS will provide a special nine-digit number called an EIN to your firm in order to identify it for tax purposes. But each DBA name will still need to be registered with your state government, it’s vital to remember that.
Do you require a different bank account for each DBA in light of this? Although it is strongly advised, having a different bank account for each DBA is not necessary. Keeping track of your funds and simplifying tax season can both be accomplished with different bank accounts. Furthermore, some banks could need separate accounts for every DBA.
Finally, more than one DBA can be used by a single LLC. When considering whether to create several LLCs or DBAs, it’s crucial to take your company’s requirements and objectives into account. You will need to register each DBA name with your state government in order to set up many firms under one LLC. It is advised to maintain different bank accounts for each DBA even though you can have numerous DBAs under one EIN.