You might be wondering whether you should register your business as a DBA or an LLC. But the thing is: It really isn’t an either/or choice.
While both options allow you to do business under a different name—one that’s different from your legal one—an LLC is a corporate business structure whereas a DBA is just a nickname for your already established business.
In this DBA vs. LLC article, I’ll detail the nuances of both acronyms to help you understand how they work and when to use them.
What are DBA and LLC?
Before decoding basics, let’s define and understand what we mean by a DBA and an LLC.
What’s a DBA?
DBA is an acronym for “Doing Business As.”
It’s a fictitious name, trade name, or assumed name that you can use to operate under a name different from its legal name. For instance, my legal name is Lars Lofgren, but I can operate my marketing business as QuickSprout—provided I file for a DBA. Starting a DBA permits me to do business as a sole proprietor or an LLC.
Mind you, filing a DBA won’t create a business entity. But it’ll allow you to operate under a different name than your personal name. Think of it as an official registration of the business name you use to run your company.
Moreover, a DBA allows you to change your name and business legally with minimal formality. Opening a business bank account and collecting payment in your business name is also possible.
The main di… Read More