What is the Difference Between a DBA & an LLC

What is the Difference Between a DBA & an LLC

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Two commonly used acronyms used for the indication of important legal aspects of a business are DBA and LLC. A DBA, or Doing Business As, represents a pseudonym an owner utilizes to conduct business. The pseudonym is not the business’s legal name, it is only the name that the owners wish to use for the businesses identity. An LLC, or Limited Liability Company, represents a legal body separate from its owners and is the legal name of the business.

To apply for an LLC or an EIN, many business owners use a reputable Tax ID Filing Service online for added convenience.

Benefits of an LLC

An LLC has benefits that a DBA does not offer. One such benefit is the protection that an LLC gives its business owner as well as their assets. Members, or owner, of the LLC, are not personally liable for any actions that may be taken by the LLC. Members assets remain separate from the LLCs assets as the LLC is a distinguishable legal entity. Business owners are liable for any and all decisions made under the DBA as it is not a legally distinct entity. There is no distinction between a DBAs and an owner’s personal assets.

In addition to asset protection, an LLC provides Trademark protection as well, giving exclusive rights over the LLCs brand name in that state. An LLC also offers the owners flexibility in the way they want to be taxed.

Benefits of a DBA

Start-up and maintenance costs for a DBA is significantly less than an LLC. Another benefit of a DBA is that it is the least expensive way to legally conduct a business using a different name. Several businesses in one state can operate using the same pseudo-name.

When you need to apply for an EIN or LLC, visit GovDocFiling for quick, and accurate processing sent directly to your email.