DBA vs. LLC

• Definition of DBA and LLC

  • DBA stands for "doing business as."
  • An LLC is a separate legal business entity.

• Key Differences

  • Liability protection:
  • A DBA lacks legal separation between personal and business assets.
  • An LLC shields owners’ personal assets from business debts and lawsuits.
  • Setup and requirements:
  • DBAs are simpler to set up but offer fewer protections.
  • LLCs entail more paperwork and have exclusive naming rights.
  • Tax considerations:
  • DBA taxes pass through to the owner.
  • LLCs have more complex tax requirements.

• Considerations

  • Evaluate risk and liability.
  • Understand legal and tax implications.
  • Assess administrative costs and seek expert advice for informed decisions.