Reply To: Compliance & Filings
DBA v. LLC
Doing business as (DBA) is a business structure in which a business operates under an assumed name, however, your legal name does not change from your personal name. Meaning your DBA is NOT the legal name of the business. When you register a DBA, your legal name is the same as your personal name, which then allows you to operate and do business activities under your assumed name. Any lawsuits resulting in victory for the plaintiff, or anything awarded to the plaintiff, then you, as the DBA “owner” are held PERSONALLY liable to uphold and pay for any judgments that might have been made against your assumed name. In layman’s terms, ANYTHING in YOUR PERSONAL NAME can and will be liquidated, in order to satisfy the judgment against the DBA (a.k.a. YOU).
A limited liability company (LLC) is a business structure that protects its members from personal responsibility for its debts or liabilities. An LLC does not use your personal name as your legal business name; albeit only associates your personal name as a member of the business without holding you personally responsible in the event of any business losses or lawsuits. In layman’s terms, anything in your personal name cannot and will not be liquidated, in order to satisfy the judgment against the LLC.