Differences Between a DBA and an LLC
In Virginia, any business operating under a fictitious name will need to register a DBA. The biggest difference between a DBA and an LLC is liability protection. An LLC provides limited liability protection. On the other hand, under a DBA, there is no distinction between the business owner and the business. The business owner is liable for all business expenses.
Why and How to Register a DBA
You should register your VA business name and obtain a business name certificate, also called a DBA. A DBA helps you open a bank account and be legal but it does not protect your personal assets because the business is still a sole owner or partnership.
Virginia’s secretary of state does not require filing a DBA. However, if you legally want to use another name, you should create one. Note that a DBA is only a branding tool and won’t protect your company in court.
To register a DBA in Virginia, first confirm name availability by searching the SCC entity database. Businesses cannot register a DBA that misrepresents the company or is confusingly similar to another registered name.
Once you register your Virginia DBA with the county clerk’s office, you will never have to renew your DBA paperwork. You can “release” the name with a Certificate of Release form if you no longer want to run the business under that name.
Reasons for Registering a DBA
Many firms register a DBA to have a secondary business name or expand operations. For example, if you plan a new product line with a separate name in Virginia, file a Virginia DBA. Check for name availability and proceed with the registration. On approval, you can legally operate under your desired assumed (DBA) name.
For information on how to register your business, safeguard assets, and meet other requirements, refer to our guide to starting a business in Virginia.