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LearnFAQSelf-Employed & Small Business

What's the difference between a DBA and an LLC, and do I need both?

Answer

A DBA, or 'doing business as,' is simply a registered trade name; it lets you operate under a name other than your legal one but provides zero liability protection and creates no separate entity. An LLC is an actual legal entity that separates your personal assets from business debts and lawsuits. A sole proprietor might file a DBA just to brand the business and open a bank account under that name. You do not need both, but an LLC can also register a DBA if it wants to run multiple brands under one entity. If liability protection matters, form an LLC; if you only need a business name and accept personal liability, a DBA alone is cheaper and simpler.

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