Key Takeaways

  • An LLC can legally operate under a DBA (doing business as) name in most U.S. states.
  • Registering a DBA does not form a new legal entity or offer liability protection.
  • DBAs are useful for branding, entering new markets, and simplifying multi-venture management.
  • The registration process varies by state and may require county-level filing and publication.
  • Renewals, compliance, and name availability checks are essential when operating a DBA under an LLC.

Can an LLC have a DBA or "doing business as" name? Yes, sometimes the legal name for an LLC is not the name an owner wants to use, so they may use a DBA instead. 

What Is LLC?

An LLC or (limited liability company) is a business entity type formed under state regulations. LLCs protect their owners or members from liabilities, financial and legal.

Business owners can choose an LLC as the structure for their business in order to avoid business taxes and liability for any company debts or losses. LLCs can offer these benefits, but the owner might not want to use the company name that is used for tax filing.

All LLCs have to register with the Secretary of State and must list their owners or members whether there be one or several.

Benefits of an LLC

LLCs offer many benefits including:

  • Recognition as a separate legal entity.
  • A legal name for business administration.
  • Liability protection for members.
  • Easy business expansion and selling.
  • Ease when searching for funds.

What Is a DBA?

DBA stands for "doing business as" and it's a sort of nickname or trade name for a business. 

A DBA is a legal declaration that a company is conducting business operations under a different name from the LLC name. 

Certain states do not allow two different businesses to declare the same DBA. A DBA must be filed with the state. 

Benefits of a DBA

DBAs don't stand as separate business entities from their companies, and they make sure the person who registered under the DBA retains any liability.

DBAs can help individuals perform their business with a different name from an LLC. If a restaurant owner wants to also offer personal chefs services, they can assume a DBA for their personal chef ventures while still working under their main company. Website owners can use DBAs in order to legally be able to conduct business using their domain name. 

Major Distinctions Between DBA vs. LLC

Individuals can create a new LLC for a different business venture they wish to pursue, but registering a DBA is much simpler and costs less. DBAs only require a fee for registration and another for renewal (usually required every five years).

LLCs require more document filing and state tax payments.

If the owner of a sole proprietorship or a freelancer doesn't want to go through the trouble of incorporating, they might choose to conduct business under a DBA to promote their brand name. DBAs don't require any bylaws, agreements, documents of formation, or any other complex formalities.

A possible disadvantage of a DBA is the lack of liability protection that's provided with an LLC.

There is a lot to keep in mind when deciding whether to form an LLC or simply use a DBA. It's always a good idea to consult a lawyer when making these types of decisions.

How To Set Up and Structure Multiple Businesses

Owners of small businesses, freelancers, and entrepreneurs all can conduct business in many different forms. A gym owner might also work as a personal trainer and have a dog walking business on the weekends.

Anyone who runs multiple businesses might question how best to form their different services and ventures into some kind of entity. They could consider forming a corporation to include all the ventures, or form each one into an LLC. 

When considering this question of structuring, business owners needs to think of marketing and legal issues. 

Marketing questions to consider:

  • What is my target market?
  • Do all of my ventures reach the same type of market?
  • Do my ventures relate to one another?
  • Will they draw the same type of customers?

If you find that you business ventures do seem to fall into the same category, you might want to consider enveloping them all together under one business structure. If they appeal to different markets, you can think about keeping them separate or using DBAs for some.

Business owners can structure their businesses in three different ways:

  • Make each venture a separate business entity (corp or LLC).
  • Form only one entity and use DBAs for the different ventures.
  • Form a parent company and then split the ventures into subsidiaries.

Legal and Compliance Considerations for DBAs Under LLCs

While a DBA allows you to operate under a different name, it does not offer any liability protection. Only the LLC provides limited liability status. Therefore:

  • Contracts and Legal Documents: Should still reference the LLC’s legal name.
  • Bank Accounts: You can usually open a bank account in the DBA’s name, but it must be tied to the LLC’s EIN.
  • Licensing: Some states require separate business licenses for each DBA, even under the same LLC.
  • Compliance Risks: Operating under an unregistered DBA could result in penalties, invalid contracts, or denial of legal rights.

Maintaining proper registration and compliance helps ensure your business avoids legal and financial complications.

When Should an LLC Use a DBA?

There are several strategic reasons an LLC might operate under one or more DBAs:

  • Branding Flexibility: Use different names for different product lines or services under the same LLC.
  • Entering New Markets: Expand to new regions or industries without forming a new LLC.
  • Simplifying Management: Avoid the complexity and cost of maintaining multiple LLCs while distinguishing different business segments.
  • Domain Name Alignment: Align your business name with your website or marketing strategy if the official LLC name isn’t a good match.

For example, a parent LLC named “ABC Holdings, LLC” might use DBAs like “ABC Landscaping” and “ABC Snow Removal” to market distinct services under one umbrella.

Steps to Register a DBA Under an LLC

To operate your business using a name other than the one officially registered for your LLC, you must register a DBA. The process generally includes the following steps:

  1. Choose a Unique DBA Name
    • Ensure the name isn’t already in use by searching your state’s business name database.
    • The name should not imply a separate legal structure (e.g., “Inc.” or “LLC” if it isn’t one).
  2. Check State and Local Requirements
    • DBA rules vary by state. In some states, filing is done at the state level, while in others, it may be through the county clerk’s office.
    • Some jurisdictions, such as Georgia, require filing directly with the county superior court clerk.
  3. File the DBA Registration Form
    • Complete the DBA form and submit it with the required fee. Many states allow online submissions.
  4. Publish a Public Notice (If Required)
    • Some states or counties require publication of the DBA in a local newspaper for a certain period.
  5. Obtain an EIN (if needed)
    • If your DBA will hire employees or open a bank account, you may need an Employer Identification Number for the DBA.
  6. Renew the DBA Periodically
    • DBA registrations typically expire after a few years (often 5) and must be renewed to remain active.

Frequently Asked Questions

  1. Can an LLC have multiple DBAs?
    Yes, an LLC can register multiple DBAs, each representing a different business line or brand, as long as each is filed according to state or local laws.
  2. Is a DBA the same as forming a new LLC?
    No, a DBA is only a trade name. It does not create a new legal entity or provide liability protection.
  3. Do I need a separate EIN for my DBA?
    Not necessarily. Since a DBA is not a separate entity, it typically uses the LLC’s EIN unless required otherwise by a bank or regulatory agency.
  4. Can I use a DBA name before registering it?
    Using an unregistered DBA is risky and may be illegal in some jurisdictions. Always check state or local rules before operating under the name.
  5. How long does it take to get a DBA approved?
    It depends on the jurisdiction, but in many states, DBA registration is processed within a few days to a few weeks.

If you need help with running an LLC under a DBA, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.