Understanding the Key Differences Between a DBA and an LLC

When starting a business, one of the first decisions you’ll make is how to structure it. Two common options are a DBA (Doing Business As) and an LLC (Limited Liability Company). While both allow you to operate under a business name, they serve different purposes.

What Is a DBA?

A DBA is simply a registered name that allows you to do business under a different name than your legal name. It does not provide liability protection, meaning your personal assets could be at risk if your business faces legal or financial trouble.

What Is an LLC?

An LLC, on the other hand, is a formal business structure that provides liability protection, keeping your personal assets separate from your business. It also offers tax flexibility and adds credibility to your business.

Choosing between a DBA and an LLC depends on your business goals, risk tolerance, and tax preferences.

Need help deciding? The Document People can assist you with setting up either a DBA or an LLC. Contact us today to get started!