The Basics of DBAs
An LLC can have an unlimited number of DBAs. To operate a business under a different name, file for a "doing business as" (DBA). Register each name after a name search. The main purpose is to inform the government and public what entity owns that business name. Multiple DBAs can also help protect the LLC’s brand identity. Consult a law firm when handling DBAs for separate or multiple LLCs.
An LLC with one DBA operates under its legal name and a fictitious name. The LLC uses the DBA to conduct business and promote its brand. The legal name remains registered with the state where formed. This provides some separation between legal and operational identities.
Considerations and Steps for Multiple DBAs
Benefits and administrative responsibilities need to be weighed when considering registration and maintenance of multiple DBAs. Reasons for more than one DBA include better marketing, as DBAs allow catchy names for products, and operating in different places, using DBAs in each state to seem local without creating new LLCs.
Steps to add a DBA include:
- Check state laws, as requirements vary.
- File applications separately per name.
- Distinguish names from competitors and your LLC.
- Open bank accounts under each DBA to track funds separately, although the LLC still owns them and files taxes jointly.
Legal Separation and Identity
The LLC’s formal name handles official processes like taxes and contracts. DBAs are public-facing. A company might need distinct identities when expanding offerings or customer segments under an existing brand.
Two businesses usually cannot share a DBA name. States may forbid this to avoid confusion. That is why LLCs must submit DBA applications, although most states allow multiple filings per LLC. However, each name requires its own set of paperwork.