Can an LLC Have More Than One DBA?

By Wayne Thomas

Running a successful business requires a keen understanding of the marketplace. In the initial stages of operations, this foresight is important for determining how to structure a company and the names it will use in conducting transactions with the public. A limited liability company allows owners to enjoy the "pass-through" tax advantages of partnerships as well as avoiding personal liability for the business's debts. While state law requires that LLCs operate under the legal name contained in their Articles of Organization, sometimes this name is not desirable from a branding perspective, particularly if the company will market very different products or services. In that case, the LLC can register one or more "doing business as" names with the state.

Overview of LLCs and DBAs

Many business owners wish to set up their company to avoid personal liability for company debts and pay taxes only at the individual level, also known as "pass-through" taxation. While an LLC accomplishes these goals, sometimes the use of the company's legal name is not desirable. A DBA name -- also known as a fictitious name, trade name or assumed name -- is a name a company uses, different from its legal name, to conduct business. The use of a DBA is governed by state law and some states require that no two businesses use the same DBA.

Registration of DBAs

Once the LLC's owners agree upon a DBA and ensure that the name is unique within the state and locality where it will conduct business, the next step is registration. The purpose of registration is to put the public and local government authorities on notice as to what person or entity is behind the name, making it possible to tie responsibility for the operations back to the owners. Failure to register a DBA before beginning operations may lead to the regulatory state or local authority imposing a penalty on the business.

File a DBA for your business online. Get Started Now

Multiple DBAs Are Allowed

Registration of the DBA name with the state is fairly simple for an LLC and involves the completion of a form indicating the name and paying the filing fee. While there is no limit to the number of names an LLC can operate under, each name typically needs to be registered separately.

Reasons for Multiple DBAs

Selecting a business name is of vital importance for an LLC. Many factors must be considered, particularly with regard to how the name will affect the business's success in the marketplace. Multiple DBA names can allow a company that will be operating in multiple markets to tailor separate names for each product or service line. Further, it may be that one name proves to not be beneficial to the business or it may desire to rebrand its image and register a new DBA.

File a DBA for your business online. Get Started Now
How to Deregister a Business Name
 

References

Related articles

Cancelling a DBA

A "doing business as" name, also known as a trade name and a fictitious business name, is the name under which a business operates that may be different from its original, official name. A company may use DBAs to conduct business under a different name for various reasons. For example, a foreign company may use a DBA in a specific location because its creation name is being used by another business in the same area. When a business no longer needs its DBA name, it can cancel the name registration with the local government agency that handles DBA registrations.

How to Set Up a DBA in California

A DBA name, also called a fictitious or assumed name, grants an individual or company the right to do business under a name other than the individual's or company's legal name. California provides entrepreneurs with a relatively simple and straightforward process for setting up a DBA, which can be accomplished through the mail or in person in your county of residence. Setting up a DBA can lead to a successful career as a self-employed individual, or it can be the first step in building a larger organization.

Can an Owner of an LLC Be Sued Personally?

When starting a business, a major concern is what the owners’ personal liability will be. Owners are concerned that if their business makes a mistake, not only could they lose their investment, but they could lose their home and other personal assets. Some business organizations, such as sole proprietorships, offer no liability protection; if the business lacks the funds to settle a debt, the owner must make up the difference. Generally a limited liability company (LLC) is different; the owner is not personally liable for the business’ obligations and therefore cannot be sued for the business’ actions. However, there are some situations where the owner of an LLC can be sued personally for the LLC’s actions.

DBAs DBAs

Related articles

Do General Partnerships Require a DBA?

DBA, or doing business as, occurs when a business operates under a name other than its legal name. A general ...

How to Register a DBA Name So No One Else Can Use It

Companies and individuals can operate under fictitious, or assumed, names called DBAs. DBA stands for "doing business ...

What Does DBA Mean in Business?

In the business world, DBA - which stands for "doing business as" - is a vitally important acronym to know. It ...

Business Registration for a DBA in Illinois

A business may elect to operate under a DBA ("doing business as") name that is different from its legal name. When this ...

Browse by category
Ready to Begin? GET STARTED