Choosing Between DBA and LLC
It depends on your specific business needs. An LLC is the way to go if you want personal liability protection. However, a DBA may be better if you’re looking for a simpler tax structure. Ultimately, it’s up to you to decide which entity is best for your business.
Understanding DBA and LLC
DBA stands for “Doing Business As” and is basically an alias (or a fictitious name as it’s often called). DBA (sole proprietorship) can be a good choice for low-risk businesses and owners who want to test their business idea before forming a more formal business.
Key Differences Between LLC and DBA
- An LLC is a limited liability company which is a fully recognized independent legal entity, whereas a DBA is a fictitious business name that a sole proprietor or partnership can use to brand their business.
By analyzing the pros and cons of each and the associated risks and liabilities, you can feel better informed as you decide how you want to do business.