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Why You Might Need a DBA for Your LLC

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You’ve done it—you’ve taken the leap and started your very own LLC! Congratulations are in order. But now that you’re a business owner, there are some new decisions to be made. One of those decisions is whether or not you need to register a DBA for your LLC. This can be a tough call to make, so let’s break it down.

A DBA, which stands for “doing business as,” is essentially a fictitious name for your LLC (limited liability company). In other words, it’s a name that you use for your business that is different from your personal name or the legal name of your LLC. You might need a DBA if you want to open a business bank account or if you want to use a different name for your limited liability company on marketing materials, website, or social media.

There are some advantages and disadvantages to using a DBA for your LLC. Let’s take a look at some of each.

Advantages of Using a DBA for Your LLC

There are several advantages to using a DBA for your LLC. One is that it can help you brand your business more effectively. Another is that it can help you connect with customers more easily. They will be able to find your business under the name you’re using on search engines and social media platforms. Finally, using a DBA can help shield your personal assets from liability since the “doing business as” name is registered in the name of your limited liability company rather than in your personal name.

Disadvantages of Using a DBA for Your LLC

While there are some advantages to using a DBA for your LLC, there are also some disadvantages. One is that it can be an additional expense since there is usually a fee associated with registering a DBA. Another is that it can be confusing for customers since they will see two different names associated with your businesses (i.e., the legal name of your LLC and the DBA). Finally, using a “doing business as” name can create paperwork headaches down the road if you ever decide to expand your business or change the name of your LLC since you would need to update all of your marketing materials, website, social media accounts, etc., to reflect the new name.

Conclusion:

Only you can decide whether or not registering a DBA for your LLC is right for you and your business. Weigh the advantages and disadvantages carefully to make the best decision for yourself and your company. And if you have any questions about DBAs or other aspects of starting and running an LLC, don’t hesitate to reach out to an experienced business attorney in your area who can provide guidance and advice specific to your situation.

About Author

Rick Mak

Rick Mak

Rick Mak is a 30-year veteran businessman, having started, bought, and/or sold more than a dozen companies. He has bachelor's degrees in International Business, Finance, and Economics, with masters in both Entrepreneurship and International Law. He has spoken at hundreds of conferences around the world during his career on entrepreneurship, international tax law, asset protection, and company structure. Business Anywhere Editorial Guidelines

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