Depending on the county in Florida where you’ll be conducting business, a DBA filing can be expensive. The cost varies by county, starting at $50 in some and rising to $125 in others. To get the precise cost in your location, contact the county clerk’s office there. Remember that you might also be required to pay additional fees to issue a notice of your bogus name in a local newspaper.
A DBA has several drawbacks even though it can be a helpful tool for branding and marketing your company. The fact that it provides no protection against personal culpability is one of its main drawbacks. Your personal assets could be at jeopardy if your company is sued. A DBA also doesn’t offer any tax advantages or legal safeguards.
An LLC (limited liability company), on the other hand, offers personal liability protection, tax advantages, and legal protections. Since an LLC is a separate legal entity from its owners, the debts and obligations of the business are distinct from those of the owners personally. For business owners who want to safeguard their personal assets, this can be a useful asset.
So, is a DBA permitted for an LLC? Yes, an LLC is permitted to operate under a DBA. If you want to run many businesses under a single LLC or if you want to use a different name for a particular commodity or service, this can be helpful. It’s crucial to remember that all legal paperwork and contracts must still be written in the LLC’s legal name.
Can you deduct expenses while using a DBA? As long as they are typical and required for your firm, you may deduct expenses associated to your DBA. This covers costs for things like printing, advertising, and legal fees. It’s crucial to maintain proper records of these costs and seek advice from a tax expert to make sure you’re claiming every tax deduction possible.
Finally, although the cost of registering a DBA in Florida varies based on your county, it is typically reasonable. A DBA doesn’t provide any personal liability protection or tax advantages, but it can be a beneficial branding and marketing tool for your company. An LLC can still conduct business under a DBA if required, but an LLC offers more extensive legal protections and tax advantages. Whatever choice you decide on, it’s crucial to speak with a legal or tax expert to make sure your firm is set up properly.