Do I Need a DBA for my LLC?

Do I Need a DBA for My LLC? 🤔 Your Guide to Doing Business As (DBA) for LLC

Understanding “Doing Business As” (DBA)

A Doing Business As (abbreviated as DBA) allows a person or a company to conduct business under a name different from their legal name. It’s essentially a “nickname” for your business.

While “DBA” is the most common term, states may use different names:

Debunking DBA Confusion: The 1st Big Mistake 🚫

Many people are confused about DBAs and often make critical mistakes, especially regarding liability.

Myth: A DBA Forms a Business or Protects Assets

False. When someone registers a DBA, they often mistakenly believe they have “formed” a separate business entity and gained personal asset protection. This is incorrect.

• If an individual files a DBA that they personally own, they are, by default, operating as a Sole Proprietorship. The DBA is just a “nickname” for that individual.
• A Sole Proprietorship has no separate legal existence from its owner. This means if someone sues a business operating under a DBA owned by a Sole Proprietorship, it is the owner themselves who is being sued personally. There is no legal shield.
  
   

Example: John Smith registers “John’s Painting Company” as a DBA. He thinks he has a “company,” but legally, he has only created a nickname for his Sole Proprietorship. If “John’s Painting Company” is sued, John Smith is personally liable.

Recommendation: If asset protection is a concern, we highly recommend understanding the differences between a Sole Proprietorship and an LLC. Read our guide: LLC vs Sole Proprietorship. (Internal Link – Verify/insert your actual URL)

How a DBA “Sits On Top Of” Your Business 🏗️

The simplest way to think of a DBA is that it’s a “nickname” that sits on top of either:

1. A person (like a Sole Proprietorship)
2. A legal entity (like an LLC or Corporation) (Internal Link – Verify/insert your actual URL)

A DBA is not a separate legal entity; it merely “points to” or represents the actual person or company that owns it.

DBA for Different Business Structures

The 2nd Big Mistake with DBAs: Does Your LLC Have To File One? 🤔

Question: True or false: an LLC has to file a DBA? Answer: False.

While your LLC can file a DBA, it is not a requirement. The deciding factor is how your LLC will operate publicly.

Do You Need a DBA for Your LLC?

To DBA or Not to DBA: Our Recommendation ⚖️

Unless your LLC absolutely needs to operate under a different name than what you registered with the state, we generally recommend against registering a DBA.

Potential Downsides of Registering a DBA:

• Extra Paperwork & Fees: A DBA is an additional filing, incurring more paperwork and state/county fees (though usually not expensive individually).
• Renewal Requirements: Most states require periodic renewal of your DBA, involving additional paperwork and fees (annually or every few years).
• Publication Requirements: Many states mandate publishing a “public notice” of your DBA registration in a local newspaper, which can be an unexpected and costly expense depending on the jurisdiction.
• County-Level Filings: If DBAs are handled at the county level in your state, you might need to register your DBA in every county where you conduct business, leading to multiple filing, publication, and renewal fees.
• Increased Confusion: Having a DBA can sometimes confuse business owners regarding obtaining an EIN, opening an LLC bank account, and filing taxes, potentially leading to errors. (Internal Links – Verify/insert your actual URLs)

Common Reasons an LLC Would Register a DBA ✅

Despite the downsides, there are valid reasons why an LLC might choose to register a DBA.

• Dropping the “LLC” (or similar designator): If your LLC’s legal name is “Christine’s Restaurant LLC” but you want your public-facing name and signage to simply be “Christine’s Restaurant,” you would need to file a DBA for “Christine’s Restaurant.”
  
  • Reminder: Always confirm with your specific state or county whether an “identical” DBA name (minus the LLC designator) is permitted, as rules vary by jurisdiction.
• Running Multiple Businesses Under One LLC: Some business owners operate several “micro-businesses” under the umbrella of a single LLC. In this scenario, you could register a separate DBA for each individual business.
  
  • Consideration: If these businesses grow significantly or face high liability, forming separate LLCs for each might offer better asset protection.
• Operating Multiple Store Locations with Different Names: Similar to multiple businesses, if you own several physical stores under one LLC but want each store to have its own unique name (e.g., for signage), you would register a DBA for each store name.
  
  • Consideration: As with multiple businesses, separate LLCs for each location could offer enhanced asset protection if liability is a concern.
• Franchise Owners: Franchisees typically form an LLC for personal asset protection, but they must operate under the franchisor’s trademarked name. For example, if “TRE Holdings LLC” owns a Dunkin’ Donuts franchise, it would register a DBA for “Dunkin’ Donuts.”
  
  • Important: You can only use a trademarked name like this if you have the legal right to do so via a franchise agreement. Registering a DBA does not grant trademark rights.

How to Register a DBA 📑

Given that DBAs can be registered in over 900 different jurisdictions (state or county level), providing links to all of them is impractical.

To register your DBA yourself, follow these steps:

1. Determine Filing Level:

   • Call your Secretary of State’s Office in the state where your LLC is registered. You can find contact information here: LLC University: All Secretary of State Business Entity Search pages. (Internal Link – Verify/insert your actual URL)
   • Ask them if DBAs are filed at the state level or at the county level in your state.

2. Obtain Forms & Instructions:

   • If state-level: Ask the Secretary of State representative where to find the official DBA filing forms and instructions.
   • If county-level: You’ll need to call your specific county clerk’s office and request their DBA filing forms and instructions.