LLC vs DBA: Which is Better for Your Business?

Starting your own business may be both thrilling and intimidating. The choice of your company’s legal form is among the most crucial choices you will make. Limited Liability Company (LLC) and Doing Business As (DBA) are two popular choices. We’ll compare LLC and DBA differences in this post to assist you in selecting which is better for your company’s needs. What is an LLC, exactly? A Limited responsibility Company (LLC) is a type of corporate structure that restricts the owners’ personal responsibility. In an LLC, the company and its owners are distinct legal entities. This implies that the owners’ personal assets are safeguarded in the event that the company is sued. What is a DBA, exactly? Doing business as (DBA) is a legal term used to designate a company that is conducting business under a name other than that of its owner. A DBA is also referred to as a trade name, assumed name, or fictional name. A DBA does not establish a distinct legal entity, unlike an LLC. Any debts or legal troubles still fall under the personal responsibility of the company’s owner. Which Is Better, an LLC or a DBA? Your business’s demands will determine whether you choose an LLC or DBA. An LLC is a preferable choice if you wish to minimize your liability and safeguard your personal assets. A DBA, however, can be a simpler and less expensive choice if you are a solo proprietor without any staff.

The price of erecting and maintaining each structure is a further consideration. In comparison to a DBA, an LLC often involves more paperwork and costs to establish and operate. However, the advantages of an LLC in terms of liability and asset protection outweigh the increased expenses. What distinguishes an LLC from a single proprietorship? The simplest type of business ownership is a sole proprietorship. It is a person-owned company, meaning the person is responsible for any debts and legal problems. An LLC, on the other hand, is a distinct legal entity that restricts the owners’ personal liability. If you wish to preserve your personal assets, an LLC is a better alternative than a sole proprietorship. How much does it cost to register a name as a trademark in Massachusetts? The cost to register a trademark in Massachusetts varies depending on the type of application and how many classes you wish to register. The cost per class for a typical online application is $225. The fee for submitting a paper application is $275 for each class. A DBA in Massachusetts costs how much? A DBA, also known as a trade name or business certificate, must be filed in Massachusetts and costs $50. This charge must be paid to the Commonwealth Secretary and is good for four years. Your DBA must be renewed every four years by paying an additional $50 charge. The decision between an LLC and a DBA ultimately comes down to your company’s needs. An LLC is a preferable choice if you wish to minimize your liability and safeguard your personal assets. A DBA, however, can be a simpler and less expensive choice if you are a solo proprietor without any staff. Additionally, the fee to submit a DBA in Massachusetts is $50, payable to the Secretary of the Commonwealth, and is valid for four years. The cost to trademark a name in Massachusetts depends on the kind of application and the number of classes you want to register.