How Many DBAs Can An LLC Have? Free Guide 2024
Reviewed by Randolph Vialva, MBA
The article is checked by our editorial team, Which includes entrepreneurs who are painfully aware of how overwhelming and challenging it is to start a business for the first time.
An LLC, or Limited Liability Company, is a type of business structure that offers personal liability protection for its owners. A DBA, or “Doing Business As,” is a different name under which a business operates, often used for branding purposes; there are tax implications. If you operate your business in multiple locations or have two businesses using a DBA instead of your own name can lessen confusion. An LLC can have multiple DBAs, as there is no legal limit to the number of DBAs that can be registered.
You will learn about DBAs and why you should use a distinct company name as part of your LLC.
What Is A DBA For A Limited Liability Company?
For your own LLC, a DBA is a different business name under which the company operates and conducts its operations. A DBA doesn’t create separate legal entities, the entity itself remains the same, and all legal and financial responsibilities and liabilities associated with the DBA are still attributed to the business entity. As to tax implications, all income, expenses, and liabilities associated with the DBA are attributed to the business entity that it represents.
This means that if a business operates under multiple DBAs, all of the income and expenses related to each DBA are reported under the same tax identification number (TIN) as the business entity. It’s important to properly register and use the DBA to avoid confusion of the business name and any legal issues, but the DBA itself does not create a separate legal entity. They must be set up according to state laws.
How Many DBAs Can An LLC Have?
Legal LLC and other business structures can have multiple DBA names depending on state laws. The number of multiple names used depends on the needs of the small business owners or LLC owners. There is no legal limit to how many DBAs can be registered, but it’s important to ensure that each DBA is properly managed and maintained to avoid confusion or legal issues. Examples for use include multiple rental property locations, multiple lines of income, company divisions or franchise operations. That why many will employ a law firm to handle the documentation for multiple LLCs, separate LLCs, and multiple DBA names. A company can have unlimited DBA names.
Why Would LLCs Want Multiple DBAs?
An LLC may want multiple DBAs for various reasons, including having a holding company for all business arms, handling business licenses, defining an existing business, expanding into different markets, creating separate branding for different product lines, or operating multiple businesses under a single LLC without confusing customers. Start by conducting a name search in your state or region. Multiple DBAs can also help to protect the LLC’s primary brand identity; consult a law firm when handling DBAs for separate LLCs or multiple LLCs. How many DBA accounts will be up to the owners.
LLC with One DBA
An LLC with 1 DBA is a business that operates under its legal name as well as a fictitious name. Some refer to a DBA as a holding company. The LLC uses the DBA to conduct business and promote its brand, while the legal name remains registered with the state where it is formed. This structure provides some separation between the business’s legal and operational identities.
Single-Member LLC with One DBA
A single-member LLC with a DBA (Doing Business As) is a company owned by one person who operates the business under a separate fictitious name. The LLC provides liability exposure protection for its owner, while the DBA is used to conduct business and promote the brand. This structure enables the owner to operate a business under a name other than their legal name, without forming a separate entity.
Multi-Member LLC with One DBA
A multi-member LLC with a DBA is a business owned by two or more individuals who operate the business under a separate fictitious name. The LLC provides personal liability protection for its members, while the DBA is used to conduct new business and promote the brand. This structure enables the members to operate the business under a name other than the LLC’s legal name, without forming a separate business entity. It also allows for multiple businesses to be operated under a single LLC with distinct DBAs for each business.
LLC with Multiple DBAs
A holding corporation can own an LLC and use several DBAs for the firm without forming a separate LLC. You shouldn’t use the same DBA for very different parts of the business, however. The answer to how many DBA an LLC can or should have will depend upon the business. It’s possible to complete multiple DBA application filings at the same time; these fictitious business names may help your business create the illusion of separate legal entities without actually separating the businesses.
Single-Member LLC with Multiple DBAs
The DBA is not a separate legal entity for a single-member LLC. The LLC is still the legal entity, and the DBA is simply a fictitious name used for branding or conducting business activities under a different name. The LLC remains responsible for all business activities and liabilities associated with the DBA. It’s important to ensure that the DBA is properly registered and maintained to avoid confusion or legal issues.
Multi-Member LLC with Multiple DBAs
It’s generally recommended that a multi-member LLC with multiple DBAs maintain separate bank accounts for each DBA, especially as a new business or single company. A new DBA helps to ensure that the LLC’s financial transactions are properly allocated and recorded for each business activity, and it can also simplify accounting and tax reporting. However, the specific requirements for bank accounts may vary depending on the state and banking institution. It’s important to consult with a financial professional or attorney for guidance on setting up bank accounts for an LLC with multiple DBAs.
How To Setup A DBA For Your LLC?
The filing process varies by state. To set up a DBA for an LLC, research state requirements, choose a unique name, register the name with the appropriate agency, and use the name consistently in business activities. In general, it must be filed with the appropriate state or local government agency. In some cases, this may be the county clerk’s office or the state’s business registration agency. It’s important to research the specific requirements and procedures for filing a DBA in the state and locality where your business is located.
The Top 2 LLC Services
| ZenBusiness | Northwest Registered Agent | |
| Award | Best Overall | Most Affordable |
| Price | Starting at $49/year | Starting at $39/year |
| Rating | 4.5 | 4.5 |
| Detail | Read Review | Read Review |
| Link |
ZenBusiness
ZenBusiness was founded in 2017, and bills itself as a one stop shop for small company preparation. The platform helps small companies launch, operate, and grow the company, and includes access to many services that simplify the set-up and launch process, and it is automated, which means the owner can quickly and efficiently file needed paperwork.
Through ZenBusiness you can search for available trade names, DBA names, create articles of incorporation, find out the needed documentation for your state and federal filings and registrations, obtain an EIN, build the company’ web presence through domain names, email, and domain privacy protection.
ZenBusiness offers three tiers for members ranging from $49/year to $299/year. For each tier there are additional charges which will not be included; these include an EIN filing charge (one time, $70), a worry free guarantee service ($129 per year), and a 25% discount on agent services, any state filing fees.
However, if you only need help with specific issues, ZenBusiness does offer an a’la carte service. For customer service, ZenBusiness offers phone, email, and live chat support. Email support is offered at all times. Phone customer service is offered Monday through Friday from 8:00 AM-7:00 PM Central Time. Customer service phone number: (512) 237-7349. Live chat services operate during the same time frame as phone services and can be accessed through ZenBusiness’ website.
Northwest
Northwest is primarily a Registered Agent Service, but its suite of products provides additional business services at a reasonable cost. The main difference between Northwest and similar legal business entities is that Northwest only offers one paid plan for services. The initial cost is $39 to file the LLC paperwork; all other charges are due as per your state’s regulations. There is a separate option, called Pay In Full. With this option, which costs $225, Northwest will file the LLC, and provide agent services for one year, however, all other charges from state fees, etc., will still apply.
Northwest will scan up to five regular documents each year for free; after the initial five there is a charge for additional services. This is also different from other providers as many will only scan and send legal documents.
Northwest also has a strict no-data-selling policy, and will provide pricing changes in advance. Northwest also offers the ability to pay by the month, with an auto-renew option.
Conclusion
DBAs are fictitious business names for an LLC, sole proprietorship, or other corporation. Your business may need a DBA if you want to conduct business under a different name than your legal name. The process of filing a DBA varies by state and locality, but in general, any business owner can file a DBA as long as they meet the state’s requirements. In some states, a business owner may need to be a resident of the state or have a physical address in the state to file a DBA. It’s important to research the specific requirements and procedures for filing a DBA in the state where your business is located.
Frequently Asked Questions (FAQs)
DBA stands for a fictitious name under which a business operates. You can do this as one LLC, the primary LLC, sole proprietor or other structure. Two businesses cannot operate the same DBA; only one LLC can use this. It is not recommended to have the same DBA for different LLCs , even if they are related or have similar business activities. This is because the purpose of a DBA is to distinguish a business from others operating under different names, and having the same DBA for multiple LLCs can create confusion for customers, suppliers, and even legal entities. It’s important to choose a unique DBA for each LLC to avoid confusion and to maintain legal and financial separation between the entities.
Requirements to register multiple DBAs vary by state and locality. In general, businesses must choose a unique name that is not already in use by another business, and the name must not be misleading or deceptive. The business may need to register the DBA with the appropriate state or local agency and may need to publish a notice of the registration in a local newspaper. Some states may also require businesses to renew their assumed name registration periodically. It’s important to research the specific requirements for assumed name registration in the state where your business is located.
An LLC may need a DBA for several reasons, such as to create a separate brand identity, to expand its business under a different name or to operate multiple businesses under a single LLC. Remember, DBAs are not like asset protection or liability protection; that is what the LLC is for.
The length of time it takes to get a DBA (Doing Business As) can vary depending on the state and locality where the business is located. In some states, it may only take a few days to receive approval for a DBA registration, while in others, it could take several weeks. Generally, the process involves submitting an application and paying a fee to the appropriate state or local agency, and waiting for approval. It’s important to check with the specific agency or office responsible for DBA registration in your area for more information on processing times.
While it is possible to combine DBAs as a sole proprietor, it may not always be the best option. Combining DBAs can create confusion for customers and suppliers, and it can also make it more difficult to keep track of financial transactions and tax reporting. It’s generally recommended that businesses use separate DBAs for each distinct business activity to maintain clarity and organization. However, there may be circumstances where combining DBAs could make sense, such as when the business activities are closely related and have similar branding or marketing strategies. Ultimately, the decision to combine DBAs should be based on the specific needs and goals of the business.
DBAs can be used by businesses in a variety of industries, such as retail, services, manufacturing, rental properties, and construction, among others. However, it’s important to research the specific requirements and procedures for DBA registration in the state and locality where your business is located.
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