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Your decision will likely be based on the cost associated with each and the level of liability protection your business will require. There are pros and cons associated with the differences between a DBA and an LLC.

What Is a DBA?

DBA stands for “doing business as.” It also commonly referred to as your business’s assumed, trade or fictitious name. Filing your business as a DBA permits you to operate your business under a name other than your own; your DBA is different from your name as the business owner, or your business’s legal, registered name.

As a business owner, you may choose to create a subsidiary company or rebrand yourself. As opposed to going through the time consuming task and expenses associated with creating a new LLC or corporation, you can alternatively establish a DBA. However, a DBA does not protect your personal assets, so in the event of a lawsuit against your business, your personal bank accounts, car, or home could be at risk.

What Is an LLC?

A limited liability company or LLC is a structure that created your business as its own legal entity, which will give your company additional credibility as well a strong level of liability protection. If your company ends going bankrupt or your business is sued, you will not held financially accountable for your company’s debts or liabilities, contrary to being a DBA.