Can you dba and llc

When you start a business without a formal structure, you are essentially a sole proprietorship or a partnership if there is more than one owner. Sole proprietorships have the same name as their owners. For example, your business's name would be John Smith if your name is "John Smith. This is obviously awkward for branding purposes, which is why sole proprietorships and partnerships get a DBA.

Sole proprietorships and partnerships with a DBA aren't formal business structures and don't have any personal liability protection. Therefore, a business owner's personal assets e. LLCs are a formal business structure and do provide personal liability protection. DBAs enable sole proprietorships and partnerships to accept and deposit checks made out in the business's name to any account associated with the DBA rather than the owner's name.

When starting a business, it is usually better to choose a formal business structure like an LLC. You won't need a DBA for branding because you will use your LLC name, and you will have personal liability protection. Visit our guide for details on how to decide what business structure is right for your small business.

The main reason to get a DBA is when your formal business structure, such as an LLC or corporation, has multiple brands or lines of business. Visit our How to Name Your Business guide to learn more.

However, these informal businesses really should have organized as a formal business structure, usually as an LLC. This way, they will have all of the benefits above as well as personal asset protection. LLCs provide limited liability protection. This means your personal assets e.

When you form your LLC, you can choose any business name as long as it is unique and meets state guidelines. When you form a sole proprietorship or partnership, you must use your surname unless you file for a DBA name. You can learn more about tools for branding your business in our How to Name Your Business guide.

LLCs, like sole proprietorships and partnerships, are taxed as pass-through entities. This means that the business's profits will pass through to its members to be reported on their personal tax returns. The benefit of personal liability protection often outweighs any additional costs. LLCs are simple to maintain compared to other formal business structures. Restrictions often prohibit the use of a name that is the same as, or similar to, a fictitious name that is already registered.

You may also be required to publish some type of notice in an approved newspaper in order to start using the assumed name. If such a publication is required, you can usually find a local legal newspaper that offers much lower publication rates than a general circulation newspaper. How to add a DBA to an LLC varies slightly from place to place, but it is a fairly easy process that typically involves filing a simple form with the appropriate government agency.

Contents 3 min read. Edward A. Haman is a freelance writer, who is the author of numerous self-help legal books. He has practiced law in Hawa… Read more. Starting a Business. If you already have an LLC and get a hot idea for another kind of business, you may be tempted to open it in your established LLC. Chances are, that's not a good idea.

As a business owner, you have many options for paying yourself, but each comes with tax implications. Your choice will likely come down to cost and the level of liability protection you need. DBA State Requirements. Doing business under a different name requires a DBA application in most states.

Find out more about DBAs in North Carolina, including details on how they can help your business, how to get one, and more. Forming a Sole Proprietorship. An Employer Identification Number, or EIN, is a nine-digit number that identifies your business for federal tax purposes. Find out what you need if you have a DBA. Ready to file a DBA in Alabama but unsure how to get started? With a DBA, you can still promote your business.

Often, a single business may have multiple DBAs. To form an LLC , follow these steps. Once you understand both options, you can start a business and select the ideal option. They can steer you in the right direction.

Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities. Fora Financial News. Industries We Serve. Small Business. Working Capital.