DBA vs LLC: What's the Difference and Which Do You Need?
A DBA and an LLC are completely different things. A DBA is just a business name registration — it provides zero legal protection. An LLC is a legal entity that protects your personal assets. If you need protection, get an LLC. You might also need a DBA if your LLC operates under a different name.
DBA vs LLC: Side-by-Side Comparison
| Category | DBA | LLC |
|---|---|---|
| What It Is | A registered business name (alias) | A legal business entity |
| Liability Protection | None — you're still personally liable | Full personal asset protection |
| Cost | $10–$100 (county/state filing) | $50–$500 (state filing fee) |
| Tax Impact | None — doesn't change your tax status | Can choose LLC, S-Corp, or C-Corp taxation |
| Bank Account | Can open business account under DBA name | Can open business account under LLC name |
| Name Protection | County-level only (limited) | State-level (prevents others from using your name) |
| Renewals | Every 1–5 years depending on state | Annual report in most states |
| Best For | Operating under a different business name | Protecting yourself legally and financially |
What It Is
A registered business name (alias)
A legal business entity
Liability Protection
None — you're still personally liable
Full personal asset protection
Cost
$10–$100 (county/state filing)
$50–$500 (state filing fee)
Tax Impact
None — doesn't change your tax status
Can choose LLC, S-Corp, or C-Corp taxation
Bank Account
Can open business account under DBA name
Can open business account under LLC name
Name Protection
County-level only (limited)
State-level (prevents others from using your name)
Renewals
Every 1–5 years depending on state
Annual report in most states
Best For
Operating under a different business name
Protecting yourself legally and financially
What Is a DBA vs an LLC?
A DBA (Doing Business As) is simply a registered business name. It lets you operate under a name different from your legal name. For example, if your name is John Smith and you want to do business as "Smith Web Design," you'd file a DBA.
An LLC (Limited Liability Company) is a legal business entity registered with your state. It creates a separate legal "person" that owns the business, providing liability protection, tax flexibility, and credibility.
Think of it this way: a DBA is a name tag. An LLC is a suit of armor. They serve completely different purposes.
Liability Protection
A DBA provides absolutely zero liability protection. You're still operating as a sole proprietor or partnership — your personal assets are fully exposed to business debts and lawsuits.
An LLC provides full personal asset protection. If your business is sued or can't pay its debts, only the business assets are at risk. Your personal savings, home, and other assets are protected.
Tax Treatment
A DBA has zero tax impact. It doesn't change how you're taxed. You're still a sole proprietor (or whatever entity you were before filing the DBA).
An LLC gives you tax flexibility. By default, a single-member LLC is taxed as a sole proprietorship. But you can elect S-Corp or C-Corp taxation to potentially reduce your tax burden as your business grows.
Formation Process
Filing a DBA is quick and cheap. In most states, you file with your county clerk's office and may need to publish a notice in a local newspaper. Cost: $10–$100. Time: same day to 2 weeks.
Forming an LLC requires filing Articles of Organization with your state's Secretary of State. Cost: $50–$500. Time: 1–6 weeks (or same-day with expedited processing).
Do You Need Both a DBA and an LLC?
You might! If your LLC is named "Harkness Enterprises LLC" but you want to do business as "Austin Web Design," you'd file a DBA for the LLC.
You always need the LLC first for protection. The DBA is optional and only needed if you want to operate under a name different from your LLC's registered name.
Which Should You Choose?
Choose DBA if...
- You just want to operate under a different business name
- You're testing a business idea with zero risk
- You need a business bank account quickly and cheaply
- You already have an LLC and want to operate under an additional name
Choose LLC if...
- You want personal asset protection
- You sign contracts, have clients, or carry inventory
- You want to build business credit
- You want tax flexibility (S-Corp election option)
- You plan to grow the business or bring on partners
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Frequently Asked Questions
Does a DBA protect my business name?
Only at the county level in most states. It prevents someone else from filing the same DBA in your county, but it doesn't prevent someone in another county or state from using the same name. An LLC registration protects your name at the state level.
Can I have a DBA without an LLC?
Yes. A sole proprietor can file a DBA to operate under a business name. However, you'll have no liability protection. If protection matters (and it usually does), form an LLC first.
How much does a DBA cost?
DBA filing fees range from $10 to $100 depending on your county and state. Some states also require you to publish a notice in a local newspaper, which can add $40–$200.
Do I need a DBA if I have an LLC?
Only if you want to operate under a name different from your LLC's registered name. If your LLC is "Smith Web Design LLC" and you do business as "Smith Web Design LLC," no DBA is needed.