The biggest difference between a DBA and an LLC is liability protection. Under a DBA, there is no distinction between the business owner and the business. On the other hand, an LLC provides limited liability protection. The business owners' personal property remains completely separate from the business.
The process of filing a DBA tends to vary from state-to-state, even county-to-county. Here is a brief overview of DBA proceedings by state along with official resources to help you get started. Can I file for a DBA online? Yes, in many states you can do so online easily, but this varies state by state.
Under California laws, there is no need for a business owner to register a DBA or a fictitious business name so long as the business' name includes your last name. This is because, under California law, a business name is not a fictitious name if it includes your last name.
The first of these three publications must be within 15 days of filing the certificate to acquire your DBA. Proof of all three publications must be filed with the county clerk within 50 days of filing your DBA application. If you fail to provide this information in a timely fashion, your DBA will be considered void.
To do business under a DBA, you must complete and file the appropriate DBA forms and pay a filing fee, after which point you receive a DBA certificate. Depending on the state you may be able to file with a local or county clerk's office, with a state agency, or both.
The biggest difference between a DBA and an LLC is liability protection. Under a DBA, there is no distinction between the business owner and the business. On the other hand, an LLC provides limited liability protection. The business owners' personal property remains completely separate from the business.
How is a business license different from a DBA (Fictitious name)? A business license is required of all businesses, while a DBA (fictitious name)registration is required only if the business is operating under a name different from the name of the owner.
Called a Doing Business As (DBA) filing, this action allows your company to legally operate under a trade name, also known as an "assumed" or "fictitious" name. By having a Doing Business As name, it's possible for sole proprietors and general partners to do business using a name other than the owners' personal name.
The Benefits of a DBA
The main benefit of filing a DBA registration is it will keep you in compliance with the law. For sole proprietors, a DBA lets them use a typical business name without creating a formal legal entity (i.e. corporation or LLC).A DBA can be filed in order for a company to transact business under the company's domain name. This is especially helpful when your company name is not available as a domain name. For example, you may want to operate another business or website in addition to your existing one.
Doing Business As (DBA) Definition: The operating name of a company, as opposed to the legal name of the company. Some states require DBA or fictitious business name filings to be made for the protection of consumers conducting business with the entity.
In most states, registering a DBA name gives your business the ability to use a fictitious business name; however, a DBA name is not the same as a legal business entity and it does not give you the same limited liability or legal protections as an LLC or other corporate structure for your business.
Called a Doing Business As (DBA) filing, this action allows your company to legally operate under a trade name, also known as an "assumed" or "fictitious" name. For example, business owner John Smith might file the Doing Business As name "Smith Roofing."
Writing Your Legal Name
Write your “doing business as” name exactly the way you register it. For example, if Jane T. Bride, a sole proprietor, wants to open a bridal boutique under the name “Bridal Haven,” she can register the name with her state or county clerk.If your company is a separate legal entity, you must separate your business and personal funds. You need a bank account for business if you operate under a doing business as (DBA) name. If you operate as a limited liability company (LLC) or a corporation, you must open a separate business account.
DBA or LLC first is a debate that many business owners have had, and it refers to the choice between operating under a DBA name or an LLC name, and all the ramifications that come with either choice. An LLC, on the other hand, is a business entity wholly separate from the owner or owners of the LLC.
If you have an LLC and want to file a DBA, you don't have to choose between one or the other—you are allowed to add a DBA to your LLC. A Doing Business As (DBA) is a good idea if your existing LLC wishes to operate under a name other than the legal name of the company.
We'll get into why, but you should consider creating an LLC if you:
- Have gotten your business off the ground and have found your first paying customer.
- Want to avoid putting your personal assets at risk.
- Have multiple owners and/or partners in the business.
A sole proprietor is required by law to use his legal name to conduct business. Use of a DBA is always optional in every jurisdiction. If a sole proprietor does want to use a DBA, he must obtain permission from local authorities first.
The simple answer is, no, you don't need an LLC to start your own business, although you may decide you want one. An LLC, or limited liability company, provides personal liability protection and a formal business structure, but you can also get those things by forming a corporation or other type of business entity.
Your business name and trading name can be different. A trade name does not need to include LLC, Corp, or other legal endings used for your tax entity. The company's legal business name is McDonald's Corporation. A trade name is sometimes called a fictitious name or doing business as (DBA) name.
The letters “LLC” or Limited Liability Company are not required to be in your logo or even on your business cards. Having the LLC show up on the marketing materials make your business look more credible. The issue is that most people don't like the look of LLC or Limited Liability Company on their marketing materials.
Forming a business entity means your personal assets aren't at risk, and filing a DBA won't alter that protection. If you don't have a registered DBA, Gordon says, you're more likely to run into problems opening a bank account or applying for a loan than to face legal action.
A business name assumed by a sole proprietor or unincorporated partnership cannot hold legal title to a vehicle or real estate. The names of the business owners appear on titles, loans and documents such as leases and insurance policies.
If a business check is not payable in your name, talk to your bank about adding a DBA to your account. Small business owners, usually sole proprietors or side businesses, can deposit a check payable to their personal name in a personal checking or savings account.
Request a DBA form from the Clerk and complete it with your chosen DBA name, your LLC official name, your name and address, and your business address. Sign and date your form before submitting it (along with the required fee to file your DBA) to the proper registry office.
