Using a dba with an LLC [Best Info]

Last updated : Sept 12, 2022
Written by : Lilly Venditto
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Using a dba with an LLC

Is it better to have multiple LLC or DBA?

Having multiples DBAs will not protect the assets and income of each DBA from the other DBAs. If one of your DBAs gets sued, all other DBAs under the LLC name will be liable. For liability protection purposes, it is better to have multiple LLCs for each of your businesses.

Can I have multiple DBA under one LLC?

Yes, it is possible for an LLC to operate under more than one DBA at a time. DBAs allow an LLC to use more than one business name without having to form multiple, separate legal entities.

What are the pros and cons of a DBA vs LLC?

The main difference between a DBA and LLC is whether or not you require limited liability protection. This is because an LLC is considered to be a separate legal entity. In comparison, when registering a DBA, there is no distinction between the business assets and your personal assets as an owner.

Can you convert DBA to LLC?

Turning your DBA into an LLC (limited liability company) is a fairly easy process that can be done yourself or with the help of an attorney or business formation service. Converting your business to an LLC separates your personal assets from your business assets, providing you personal liability protection.

Does my DBA need an EIN?

That's because an EIN is used for tax purposes, and your business is the entity that pays taxes. Your DBAs are just your business nicknames, and therefore, you won't have a separate EIN for a DBA.

Can 2 businesses have the same address?

There's nothing wrong with multiple businesses sharing an address.

Can you have 2 LLC with the same name?

Can Two LLCs or Companies Have the Same Name? Yes, with some exceptions. When you're forming a corporation or an LLC in a state, the name must be unique to your business within that state. Others can form LLCs and businesses in other states that have the same name as yours.

What is it called when you own multiple businesses?

A conglomerate is a corporation made up of several different, independent businesses. In a conglomerate, one company owns a controlling stake in smaller companies that each conduct business operations separately.

How do I add another business to my EIN?

If you have already filed your return for the current year, write to the IRS at the address where you filed your return and inform the agency of your new business. Include your EIN number and have a corporate officer sign the letter.

How does a DBA affect taxes?

If you're a sole proprietor registering a DBA, nothing is going to change in terms of your tax situation. All earnings made from your DBA will still appear on your personal return and will be subject to regular income taxes and self-employment taxes. Self-employment taxes are where sole proprietors get hit the hardest.

What are the tax benefits of a DBA?

No Special Tax Benefits: Unlike a corporation, filing a DBA that is not part of an LLC or another 'corporate umbrella' will not give you any special tax benefits. Your business' revenues will be passed on to your individual tax return and taxed accordingly.

What are the limitations of a DBA?

  • Lack of Naming Rights: Using a DBA does not give you official rights to your business name.
  • Lack of Legal Protections: Using a DBA also does not give you the same legal protections and limited liability as an LLC or other corporate structure.

Is DBA cheaper than LLC?

What Are the Differences in Filing Fees Between a DBA and an LLC? An LLC is much simpler and less expensive than incorporating—but a DBA is even less expensive and simpler still. LLC: You'll need to pay an initial LLC filing fee and an LLC annual/biannual fee.

Should I change from DBA to LLC?

Even though a DBA allows you to operate under a fictitious business name, it doesn't protect your name from being used by someone else. By forming an LLC, you gain increased protection on your business name within the state because the state ensures no other business entity can operate under the same name.

Can I use my sole proprietor ein for my LLC?

“If you have an existing EIN as a sole proprietor and become a sole owner of a Limited Liability Company (LLC) that has employees or needs to file an excise or pension plan tax return, you need to get a separate EIN for the LLC to file employment taxes.”

Do you file a DBA with the IRS?

Even though a company that chooses to operate under a DBA does not need to file for their own EIN, they will have to report their new name to the IRS.

Can a DBA have its own bank account?

Yes, you can open a business bank account as a sole proprietor using a DBA. A sole proprietorship is a business owned by one person where there is no legal separation between the owner and the business.

Can I use the same EIN number for 2 businesses?

Each one will require a separate, unique EIN. You cannot use the same EIN for multiple businesses, even if they are owned by the same person. EINs are not limited, so you may apply for as many as you need. You are dividing your business into separate entities.

Can I use the same address for multiple LLC?

Same address can be used for multiple companies, although it's always a good idea to have a unique address for your business.

How can I run 3 businesses at the same time?

  1. Set boundaries.
  2. Maximize the time you do work (and then you won't work so much)
  3. Choose your schedule.
  4. Make sure you're motivated by more than the bottom line.
  5. Don't do what you don't like.
  6. If you're on the verge of burnout, sell your business or hand it off.

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Using a dba with an LLC

Comment by Shea Blehm

hi everyone i'm attorney aidan durham with 180 law co in colorado and you are watching all up in your business on this episode of all up in your business we're going to talk about dbas and the proper way to use the dba with your business but first don't forget to like subscribe and share and be sure to check the description for links to additional information and resources including my new business checklist which you can download for free all right so first off what is a dba dba stands for doing business as some states use different names or terms for dbas colorado for example calls it a trade name some states call it a fictitious name or an assumed name but overall a dba trade name fictitious name whatever you want to call it it's all pretty much the same registering a dba or trade name is not the same as registering a trade mark first off trademark rights apply to dbas in the same way that they apply to any other business name or brand but registering a dba or trade name doesn't confer any of the additional rights or benefits that you would get from registering a trademark with the united states patent and trademark office or even a trademark registration with your state again every state is different but typically we would register a dba by filing some kind of form with the secretary of state in the state where your business is located or registered in colorado we would file a statement of trade name to register a dba or trade name if we were registering a dba for a sole proprietorship in colorado we would use a form called statement of trade name for an individual this is because the sole proprietorship is technically the individual so it is a trade name of an individual if we were registering a trade name for a general partnership we would use a form called statement of trade name for a non-reporting entity this is because a general partnership isn't required to be registered registered with the state and therefore it's considered a non-reporting entity if we're registering a dba for an llc or a corporation we would use a form called a statement of trade name for a reporting entity because those entities are required to be filed and formed with the secretary of state and therefore they are considered reporting entities again that's just what colorado calls them each state's forms are going to be called something a little different and they're not all necessarily going to use the term trade name or dba and frankly i don't know if every state has separate forms for individuals versus reporting entities like llcs non-reporting entities basically every state's a little different so why would we use the dba or trade name in most cases as a business you would use a dba if you're going to do business as a name that's different from your business's legal name if you're operating a business as a sole proprietor or general partnership then you can register a dba so there is record of the name that you're doing business under for example if you are a business coach and your name is sarah johnson and you do business as sarah johnson then you can register a dba for sarah johnson or you can register a dba for sarah johnson business coaching or sj business coach or whatever name you're gonna do business under the dba doesn't have to include your personal name i was just using that as an example of course whatever you want your business name to be that can be the dba assuming it's you know available and you're legally allowed to use that name of course there's no real legal benefit or legal protection that you get from registering a dba in that instance it's not the same as filing or forming an llc or getting a trademark registration for example but if nothing else you get a registration for that business name with the secretary of state's office so you know if another company is thinking about registering a business for that same or a similar name they'll at least see yours there in the secretary of state's database and you know they'll know that you exist and maybe they'll decide to change their name to something else but the point is it's just getting it registered there but registering the dba or trade name doesn't give you any additional protection or rights other than what you might already have just by virtue of using that name for your business you also don't need to worry about keeping your business separate from you like you would with an llc in an llc it's important that you have a separate business bank account for example that doesn't really matter if you're operating as a sole proprietorship under a dba you certainly can have a business bank account for it and in fact i think it's you know generally a good idea just for good business practice in the sake of knowing what your business's numbers look like and for business operations but you don't have to you're not at risk of piercing the corporate veil because there is no corporate veil to be pierced you're already personally liable for anything with regard to the sole proprietorship so you don't really have anything that you need to avoid if you're operating a business as an llc or a corporation or some other kind of legal entity then you can use the dba or trade name if you're going to do business under a name that's different from the llc or corporation's name that's registered with the secretary of state for example my llc is registered as 180 loco llc and i do business as 180 loco llc so i have no need for a dba but let's say i wanted to open up a second location of my business in my state but just for fun i want to brand it under something else maybe instead of 180 i want to call it 360 law co in that case i can register a trade name under my llc for 360 locko so in other videos where i talk about llc's and avoiding the risks of llcs and piercing the corporate veil i mentioned how it's important to use the llc or similar designation because your customers and the people that your business is dealing with they need to be aware that they are dealing with a limited liability company on contracts and other legal documents it's important to include that entity designation whether it's llc or ltd limited whatever it is important to include that on those documents so it's clear that it's the llc that's entering into that agreement but that doesn't mean you have to always use llc in the name all the time you can if you want to but you don't have to you don't have to include llc in your logo for example or on marketing materials all the time if it just doesn't look right or for whatever reason you don't want to include llc in there that's okay to do and in that case just because you occasionally don't include llc in the name doesn't mean you have to register a dba for that same name without the llc it's really more about if you're doing business under a name that's different than your llc or corporation's name that's registered with the state if you want to create different brands or different lines of business all within your one llc then that's a great use of a dba or trade name you can operate multiple businesses multiple lines of business multiple brands under one entity but lik

Thanks for your comment Shea Blehm, have a nice day.
- Lilly Venditto, Staff Member

Comment by Mauro

in today's video i'm going to talk about the five reasons why a dba also known as a doing business as may be a huge benefit to your llc hey so you probably clicked on this video because you want to learn whether or not a dba also known as a doing business as may benefit your business this video is right for you hi my name is andrew i'm from malayala where we help entrepreneurs just like you start your businesses without having to deal with the complicated legal forms our done-for-you service is backed by over 2044 five-star google reviews and we can help you start your business too i am a recent law graduate i am currently waiting for my bar results and in the meantime i'm helping entrepreneurs just like you start your businesses let's go ahead and talk about the five reasons a dba may benefit your llc when someone files a dba it's normally circulated in some kind of newspaper it lets the community know exactly who is behind a business the first reason why a dba may benefit your llc is because you can operate multiple businesses for llc's or corporations a dba will let you operate more than one business without having to form a separate llc or corporation for each one let's say you have three different businesses one is in real estate one is in repairs and one is in transportation while it is advised that you create three different llc's for these three separate types of businesses in order to protect yourself from personal liability for each one you can use a dba to create three dba or fictitious names for each individual business so in this case you would be able to open a dba so in this case you would have one llc and you would be able to open one dba for the transportation business one dba for the repair business as well as one dba for the real estate business whether this will benefit you depends on your specific situation this will cut down on expenses as well as paperwork if you are in the business of operating more than just one business the second reason why a dba may benefit your llc is because dbas keep your business compliant if your business is an llc or corporation you enjoy certain protections however these protections may be invalidated if you're operating under a different name and didn't file for a dba say for example bob signed a contract under the name building bricks however that contract may not hold up in court if bob used the name building bricks to enter into a contract if bob did not have a dba the third way a dba may benefit your business is if you want a creative or distinctive company name many companies give their businesses a name that matches the product or service they provide i mean who can blame elon musk for naming his business after pioneering engineer nicola tesla but if they had started with elon's electric cars it's likely they could have used a dba to continue running their original businesses with their new and improved names again having a dba reflect your business is something that may attract clients to you it may build your credibility as well as your authority in the field that you partake in whether that be the online space whether that be retail space whether that be restaurant space creating a dba that reflects your business and having your llc operate under that dba may provide you with a reputation that you wouldn't want to miss out on the fourth way a dba may benefit your llc is if you're in the process of wanting to capture a different market under a new domain name for example online sales can be huge for any business rather than trying to make one website be everything to everyone you can segment your online market by filing dbas for different subsets of products or services maybe you have product in beautyline maybe you have products for linen maybe you have products for kitchenware having a dba will allow you to segment your online market will allow you to segment these different types of niches this way you can create websites specifically targeting customers with different needs you can have as many fictitious names as you like within reason all under one business roof such as an llc now the fifth reason why a dba may benefit you as an llc owner is that it allows you to stake a claim on your business name so when you file a dba you're also announcing the name you've chosen to the world by putting it on the public record in some states a dba filing doesn't prevent another business from registering the same name but it's worth checking if that's the case in your state it could save a lot of problems later if you're still not sure if doing business is right for you if you're wondering whether a dba is advantageous for your business consult an attorney who can help you walk through the possible benefits a dba may offer you now to sum it all up again it all depends on your situation it all depends on whether or not anything discussed in this video is something that applies to you if you have one llc but you have different sort of business niches you can use a dba for each separate niche but it is advised that you create and you set up an llc for each business doing so will allow you to be personally liability doing so will allow you to be protected from personal liability so say for example you have one llc and you have three dbas under that llc if any one of those businesses get sued all businesses will be tied up with that single lawsuit that's why it's important that you separate it out but again depending on your situation i do advise that you speak with an attorney in order to determine how a dba will provide you with benefits for your llc if you happen to have any questions about anything that i discussed today click the link in the description box below to book your free consultation with a trained professional who can determine for you whether a dba will benefit you in your situation and you as an llc owner if you haven't already please make sure you hit the like and subscribe button so you don't miss out on any future videos it's time to invest in yourself it's time to rise

Thanks Mauro your participation is very much appreciated
- Lilly Venditto

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