What is the difference between a DBA and an LLC? | Business Basics | Choosing an Entity | DBA vs LLC
ฝัง
- เผยแพร่เมื่อ 22 ธ.ค. 2024
- Question of the Day: What is the difference between a DBA and an LLC?
=============================
👉🏾 FREE ASSESSMENT: What Entity Should You Form? assessment.tos...
✉️ Join the Newsletter: www.toslegal.c...
► If you enjoyed this video, subscribe to my channel here: @toslegal
Video Summary:
There are so many people who go down to their county office and get something called a Doing Business As (DBA) or Assumed Name Certificate and incorrectly believe they have some type of legal protection. The truth is really don't. If legal protection is what you are interested in, the limited liability company is your better option. This video explains why.
=============================
📹 My TH-cam Gear
Please note that there may be affiliate links below. This means I may make money if you make a purchase using these links.
→ Canon M50: amzn.to/3y8XaCq
→ Sigma 16MM: amzn.to/3URCYyd
→ PHOPIK 77” Tripod: amzn.to/3whjvxa
→ Neewer Softbox Lights: amzn.to/3whjvxa
→ Rode PodMic: amzn.to/3xYKVbR
→ Elgato StreamDeck: amzn.to/44mH83U
→ Ecamm Live: shorturl.at/akrHS
► If you enjoyed this video, subscribe to my channel here: / thelawofficeoftemisiya...
Please note that the information I provide on this TH-cam channel is for educational purposes only and does not create an attorney-client relationship. Everyone's situation is different and requires an individualized analysis. If you are facing a legal issue, contact a licensed attorney in your jurisdiction.
Follow me on:
Facebook: / toslegal
Instagram: / toslegal
LinkedIn: / temisiyanbade
✅
Copyright © 2020 The Law Office of Temi Siyanbade, PLLC. All rights reserved.
#startyourbusiness #smallbusiness #DBA #limitedliabiltycompany #blackbusiness #EssenceNews #BlackEnterprise
*There's a lot of misinformation out there about business formations. What's the biggest myth or misunderstanding you've had about DBAs or LLC? Drop a line below. 👇🏾👇🏾👇🏾*
What about a Dba under an LLC? Isn’t it protected under the LLC
Good morning! I have a question. My real name is on my npi number and my ein number has my business name and dba name on it. If I apply for credentialing on CAQH would this be a problem or do my ein number is linked to my real name?
@@beautyrunswild😊
@@beautyrunswild , Great question. In those cases, the DBA is just a "nickname" for the LLC. And the DBA is the same as the LLC. It doesn't create any rights to exclusivity.
I was here to learn how DBA works but i can't stop saying to my self wow she's beautiful ❤️ gosh u are sweet also thanks for the info
I started a vending business but decided to go in to other part of the and was thinking would it be easier to get a DBA or just go ahead and change my name of my business. But after looking at this video I guess it would be better to just do it right and change the name of my business
Straight to the point and thank you for explaining it in an easy way to understand
You are very welcome!!! That's the goal!
Thank you for this information and explaining the difference between the two. I'm currently starting a business, and I'm really not sure where to start.
Glad it was helpful! I know it can be confusing but keep pushing! You got this and you are seeking the knowledge and support you need to do it the right way!
Love how clear and precise you are in your explanation!!! Thank you
THANK YOU!!!! I'm so glad to hear this. That's the goal!
Thank you so much! Just what I thought, but I wanted to make SURE I understood. No one would explain it like you. Thank you!
So glad to know that this was helpful! By the way, I'm hosting a webinar about LLCs and Trademarks. You might be interested in it. Feel free to check it out www.toslegal.com/startrightworkshop.
Great edification sis thank you shalom most high and Christ bless you !
Amen! Thanks!
THANK YOU FOR GETTING STRAIGHT TO THE NITTY 💪 and your energy is beautiful thank you for your wisdom and insight sis! 💚
Great information! Could identifying a business name help in establishing a start date of commerce when you are applying for a trademark 1a?
So its kinda a vanity name
Thanks for getting straight to the point. Knowledge is power. Keep sharing that knowledge. Have a great day.
It's my pleasure!
Thank u so much bc u broke it down to where anyone can understand it ❤❤❤
That was very helpful! Thanks for sharing this information.
You are very welcome! I'm so glad to know that this is valuable to you. 😊
I'm looking to start a business. And my plan is to start a DBA first get some work done and move over to an LLC that is going to have similar jobs and the LLC is going to have bigger projects. My question is when I start a DBA and it gets processed. How will I find jobs?
If you already have an LLC and you are starting a different arm/type business, can you do so by adding a dba under the LLC for that purpose?
You are very detailed and good explanations. Thank you. You help me to understand what all this stuff means and and what is necessary and what isn’t.
You're very welcome!
Hi there! Grrrrreat info! Have a question: if I have a DBA or an LLC and have rendered services for a company, shouldn't they pay me under my DBA or LLC (line 2 of my W9) instead of my actual name? Your answer will help me SO much ❤
I loved the way you explained all of this. Thank you.
Jjust what I needed...thank you for the information.
Glad it was helpful! Check out the LLC mistakes video too. I have some more info on DBAs there.
Perfectly explained, thanks.
So glad it was helpful!
Simple explanation - Thank you!
I aim to please :) Glad that it was clear!
Awesome video, thank you for dropping these gems!!!
Thanks 🙏 much appreciated 🇯🇲🇯🇲🇯🇲
HI I HAVE A LLC BUT THEY EMAIL SAYING I HAVE DO A TRADEMARK TO CLAIM MY NAME THEN THE EMAIL ALSO SAID ONCE THE DBA BEEN APPROVE THEY WILL SEND ALL MY DBA DOCUMENTS IT SAYS ON MY REGISTERED MY BUSINESS THEN LLC TRYING UNDERSTAND THIS
I'm starting a medical courier service. How do I attain your services to set up my LLC structure? I want to be certain I'm covered correctly.
For vending machines and atm machines businesses, would you recommend an LLC instead of a DBA?
Awesome video Temi! Thank you for sharing this with us 🙏🏿
You are very welcome! I'm really glad this information is valuable to you! 😊
Hello, I would like to find out how to use my LLC for startups (like venture capital - Having more than 5 startup under my LLC). How does that work
Amazing video! Thank you so much❤
Straight and to the point. 🤝👑 subbed 👍
Thank you for this video. Very well produced and extremely informative.
Glad it was helpful!
Im in Litigation now with an apartment complex, the owners of the company put in a sanction against me , claiming that the apartments are just a dba and cant be sued? Is that true , also the reason the company put that sanction in because i put a default judgement in against the apartment complex for not answering the summons complaint .
@Sugabay, I'm so sorry to hear that you are facing this. I can't give you any specific information due to special rules that attorneys have unless you are my client but here are few pieces of information that I think can help clarify the situation you are in. Although I'm not sure I understand who owns what, it is true that a DBA can't be sued. The reason for this is that a DBA isn't a legal person. If you "own the DBA" or have a DBA registered, the legally responsible party is you. The DBA and you are one and the same. However, if an LLC or corporation "owns the DBA" or registers the DBA, the LLC or corporation should be the entity being sued. It is common, though, for lawyers to try and sue both the entity and the owner, and the legal counsel you select to help you defend the case would have to prove that they cannot bring you in personally. That goes into the topic of maintaining limited liability, which is a conversation for another day. I hope this helps, and I hope you're able to get experienced legal counsel in your jurisdiction to protect you. Sending my best wishes.
@@toslegal Thank you
I have a soap business but I have soap for women, men, and children. I have my business name but I have special names for the men and children soap. They all will be under my main business name but do I need to get a DBA or should I just say the name on the labels and say created by my business name. Or should I get LLC for each name.
Great question, but this would take time to unpack. My recommendation is to speak with an attorney who can look at the different names and your business structure and tell you how to best organize the various components. If you're available, I'm doing a live next week where I might be able to elaborate: www.toslegal.com/asktemilive. Hope to see you there!
I have a garage that I do woodwork in (making cabinetry, tables, chess boards, cutting boards, woodwork), and I wanted to start a business selling these items online. Can I open a DBA or LLC and run it from my home address or I have to have a separate business address?
Great content! Question; if a company has contract work and requires an LLC will anything less land that contract? Meaning a sole proprietorship?
Hey! Great question. It really depends on the company. Most of the companies my clients work with will still require it because it is a relatively easy thing to do and adds a bit more security. But it really depends. Thanks for watching!!!
So basically- don’t get an LCC unless you have assets?
And If you don’t have any assets and are just starting your business, a DBA would be best for me?
What about a DBA + and umbrella 🌂 insurance policy ?
Great question! I think I'll make a video about this!
If I’m a insurance agent do I need a llc
This made it so much easier to understand and help Olán what route I will take thank you for this ❤❤❤
So im a musical artist.. Im want a LLC forsure but im already making money with my name but it is not registered.. My personal and business are basically together right now so my rap monies can be cashedout to my personal account.. But this is the first year ive applied for publishing and etc.. My question is should i get a LLC for my rap company or one for my rap name itself
In my opinion llc the company and trademark the name.
Very clear and informative. Thank you. Thank you.
You are very welcome! By the way, I'm hosting a webinar about LLCs and Trademarks. You might be interested in it. Feel free to check it out www.toslegal.com/startrightworkshop.
Hi Temi, I really appreciate your informative, straight to the point content. My only question is I have an LLC. But I recently rebranded and changed my name. Would my new brand name be protected under my old LLC name if I filed a DBA attached to the LLC i've already registered and paid for? I hope my question made sense.
Hi Brittany! Great question, that really requires another video. I want you to check out the video on LLC vs. Trademarks. Your question involves different buckets of rights. I wish I could provide more insight, but we have really strict rules about how attorneys answer questions...we can go into much more detail with our clients than the general public.
@@toslegal Should I contact you... I have the same question :)
I had the same question, did you ever figure this out? I have an LLC already, but i dont want to change the name of LLC created and want to run business as whatever I choose as a name for the DBA associated with my current LLC...
Thank you so much. Quick question. Can you have a LLC register a DBA in another name?
Great straight forward info🤞🏾
I have an LLC. Can I have a DBA listed under my LLC? So essentially, it's the same company but I wanted to create new branding for a service that I'm offering. I would file taxes together under the same LLC. I also opened an additional bank account at the same bank so that I know what portions of the business is bring in what money and when. Is that okay? Or is there no need for a DBA?
I have that same question
Did you ever found the answer? I was wondering the same
I just released a video on this topic. Hope it helps! th-cam.com/video/g8u3w5lj-6o/w-d-xo.htmlsi=gWLy5V4en-j9AVAd
I just released a video on this topic. Hope it helps! th-cam.com/video/g8u3w5lj-6o/w-d-xo.htmlsi=gWLy5V4en-j9AVAd
As New Mexico doesn't require or register DBA's under LLC, does that mean DBA's can be used without registration by a LLC or DBA's are not allowed and separate LLC needs to be registered in case of New Mexico?
Very easy to follow thank you soooo much !! I just bought a makeup palette from a company who just helps me customize and put a log on the palette I am not the manufacture so I’ve been stuck on what I should do and get so when I sell my palettes I can be protected
I'm glad I can help. You'll probably need to speak to an attorney who can review the details of your agreement with the manufacturers.
Clear explanation,, very helpful
Glad it was helpful!
Definitely a sub!!!
Question: so both names may be used interchangeably?
Great information. Thank you.
Glad it was helpful!
Im in S.A. and provide handyman services. Minor repairs that do not require licensed services. I do have a full time job. For tax purposes is it better to do a DBA or an LLC? Thank you for any help and information.
Hi! Great question. You'll want to reach out specifically to a tax professional to find out what would be better for you, and I can't provide you with specific advice for your situation unless you are a client. Additionally, you are in another jurisdiction, so the rules there may be completely different. But to explain US systems, DBAs don't have any independent tax implications. So when you are evaluating whether something is beneficial to you or not, you have to look at what the DBA is attached to. Is it a DBA for a person? If so, it will be taxed like that person. Is it attached to an LLC? If so, it will be taxed like an LLC, and so forth. You definitely want to find a professional in your jurisdiction (your state and country) that can tell you how the rules there work specifically for your situation.
@@toslegal ok great thank foe the information. Every little bit helps 😉
Thank you I really needed this for my future!!!
You're so welcome!
Should we get both? If so which one first? If not, which one is more recommended?
It's going to depend on your unique situation, but generally speaking, if you're main goal is legal protection, an LLC is the tool that gets that. The DBA does very little for you.
that was helpful and understandable thx
The Llc doesn’t protect a sole P. Once the onion is peeled it’s still just you. There has to be a certain
structure to protect even with an LLC
Very true. This is the first layer of protection but there are particular steps to take to maintain it and keep that protection. When I help folks form businesses, I provide them with a guide that outlines how to navigate that. Thank you for sharing! You've inspired me to do a video on maintaining your LLC and maximizing your LLC protection!
Thank you ❤
You're welcome 😊
Can you get grants and loans for DBA?
It depends on the grant and loan. You'll have to read their requirements and seek the help of an attorney to navigate it if it is not clear.
@@toslegal Ok because it seems like this is something that is not likely
How would I apply for LLC, what website do I go to and do I just apply without any other papers needed ?
Hi Diam, How and where you apply depends on the state where you are creating the LLC. A good starting point for state specific information is your State's Secretary of State.
The Law Office of Temi Siyanbade thank you so much what is the difference between filing as LLC, L.L.C or limited liability company. (Do you have to market the name with one of the 3 at the ending or is it just a preference as to how it appears on paper?)
Hi, thanks for your video! I have a question, is a DBA protected under an LLC? So let's say I have XYZ, LLC dba Sandy's Candles. Let's say someone sues my DBA Sandy's Candles. Are they technically suing my LLC?
@Sandra L No one is going to sue your DBA. They are going to sue the LLC. Just like if someone named John Doe goes by the nickname Jimmy, when he gets sued the lawsuit will have "John Doe" as the defendant, not "Jimmy". The lawsuit will be brought against either "XYZ, LLC dba Sandy's Candles" or "XYZ, LLC". Either way, XYZ, LLC will be the defendant, not Sandy's Candles. Because XYZ, LLC can file for as many dbas as it likes, don't think you can do something wrong and then just before you get sued you drop the one dba for another and think you will get away with it. No matter how many dbas you file, it doesn't change the fact that the business entity (XYZ, LLC) is always going to be the thing being sued.
Thank you
You're welcome
I wrote an ebook under a pen name. That later blossomed into a Facebook group with a small following. I’d like to begin offering coaching packages, probably as a sole prop. Would I need a DBA in my pen name or can I create an LLC and use my pen name without a DBA? I’m so confused by all of this.
So if I already own and operate an S corp but I diversified my business and the name on the s corp doesn’t match the new diversified part of the business. If I opened a dba it would have zero protection? I thought I could open a dba just for the name ( sort of like it’s own branch of the company) and run the money through my s corp?
Great question! The protection of the entity can pass onto the DBA if the entity obtains the DBA. Most of the time people do not formally obtain the DBA through the existing business. If you have more questions, join me here next Tuesday. I'll be answering questions live.
In your opinion, what types of businesses need an llc?
this is a good question, kinda odd it wasn’t answered
It may be more opinion based, possibly why it wasn't answered.
I know this was posted two years ago, but the main benefit of forming an LLC is that it separates the business from your personal assets incase anything really bad happens. So, I would consider forming an LLC if you’re in a business that could potentially get sued by someone.
For example, if you’re a tree trimming company and you accidentally cut down a tree and it falls and destroys somebody’s fence, garage, vehicle, home, etc…if they sued you, none of your personal assets (mortgage, vehicle, etc) would be at risk
You can make anything into an LLC. It's all about providing either goods or services.
You clutch with it. Thank you 💎
You are very welcome!
THANK YOU!!!
Hi Temi! Thanks for the video. If I'm just a small time player and wanted to start a business buying wholesale and selling retail with no overhead( such as a building to operate out of) what type would you suggest? I basically want to start a T-shirt business from home. But I also would like to keep options open outside of that niche. I dont think I need an LLC or a Sole Proprietorship. any suggestions? Thanks!!!
Short, quick, and informative. Loved it, thank you for sharing!
My pleasure! Thanks for the encouragement!
i am getting ready to rent out my house 🏡 it’s my first rental property and i don’t know if i should keep it in my name since i still owe on my mortgage or if i should set up an LLC
What if you have a holding company with other entities that funnel up to holding? Holding would be registered as LLC, then other business entities feed into that one but listed as DBA? Or would those other entities each individually be LLC's under holding? Thanks so much.
Should I do a s Corp or llc for a business bound to average 15k per month?
That's really going to be something to decide with an accountant and an attorney because the S corp has some special rules. Here's a video I made on the subject: th-cam.com/video/dvTVrkfhifM/w-d-xo.html.
what if you do a dba for your LLC ??
thank you for this! ☕️🤗
You are sooo welcome! Glad to help! You might also want to check out my more recent video on LLC mistakes. I talk about DBAS in that one too.
Thank you so much! So do you need to file a DBA before or after filing an LLC, or is the LLC enough (if the business is not just your name {"John Jones, LLC", etc.})? I just filed an LLC. Do I need to now file a DBA for that LLC?
You ever find out your answer
This follow up video might help. th-cam.com/video/g8u3w5lj-6o/w-d-xo.htmlsi=gWLy5V4en-j9AVAd
Thanks for the help!!😊
Happy to help!
Hi can I register my llc as one name and my DBA under another name for billing purposes?
This helped a lot... thank you
Glad it helped!
I don’t have the money to register for an LLC dang
Hey my name is anniya Johnson I have a couple questions today about your topic so I’m starting a new business but I don’t want to use my name legal name I want to use my nick name for my company … before doing my llc I want to do dba first then my llc would I still be able to use my nick name when I do that ? Im also getting a trademark done when I do my dba for nobody can steal my name
I'm in tx do I need a DBA and a LLC
Hi Nanny! It's going to depend on your situation. The big takeaway is that LLCs offer real legal protection and DBAs are basically nicknames that the government wants requires you to share if you use a name different from your LLC name.
Can we do a DBA under an LLC?
thank you so much
You're welcome!
Can a llc have a dba
Yes, it absolutely can. Great question!
I live in California. Is there an extra cost and annual fee to add a DBA underneath my LLC? Do you know or does anybody know? Also can my client make a check to my DBA?
DBAs usually cost an additional fee. And yes, a check can usually be made to the DBA, especially if that name is made known to the banking establishment.
Hello how do I setup a dba under an existing LLC?
Hi @tinybug23. It depends on your local laws. Many states assign DBAs on a county based level and the LLC is the entity that applies. That will make the most sense when you have the application in front of you.
I am in Texas with you do I need a LLC to get funding for a small start up business
Probably. But the Texas rules for attorneys prohibit me from giving really detailed/tailored advice to people who are not officially my client or considering becoming a client so take that with a grain of salt. Different types of business funding and financing require different levels or formalities.
THANK YOU
You are so welcome!
If I want to start a Filmwriting company would a DBA be better than an LLC?
I can't tell you what's going to work best for you, but a DBA gives you no legal protection, so keep that in mind and speak to a business attorney in your jurisdiction. They can help you go through the proper analysis.
Yoo this was hella informative
Yes!!!!!!! Thanks for the love! That's the goal! Share the knowledge!
CA LLCs are very expressive. $800+ annually
Great video 👍
Can I get a DBA for a 1099
Yes you can. A DBA is just a legal nick name.
Can you do taxes with a dba ?
Hi Edg3, The taxes are filed according to the underlying entity or business organization, so a DBA doesn't file taxes.
Can your personal assets still be sued even though you did 2 businesses DBA under an LLC? Or the original LLC which you did DBA under protect you?
Good question! The DBAs are under the LLC so they are tied to that entity. However, there are other behaviors that could result in the loss of that limited liability. I'll probably touch on how during the webinar I'm hosting about LLCs and Trademarks. You might be interested in it. Feel free to check it out www.toslegal.com/startrightworkshop.
Does the LLC come with a EIN
Great question. You have to apply for the EIN separately.
Hi ! Thank you for such an informative video! Would you suggest using any of those third party platforms, such as zen business, Legal zoom or Inficile that creates an LLC for you?
First, great question! Well, everyone has to assess the risk for themselves. Just remember that they aren't a law firm, so you can't get real advice or real customized attention. Critical elements can be overlooked when applying a one-size-fits-all approach.
Thank you so much for your response!
Also, when you have an LLC, is it mandatory for you to attach LLC to the end of your business name ?
Can your DBA be the same name as your LLC?
Yup! Definitely possible! Hope this helps!
@@toslegal yes it did thank you 🙏🏿
Can you have a DBA without an LLC?
If only this were true... your ALL CAPS NAME; FIRST MIDDLE LAST, is a business. The dba is much more than you realize.
Kessler Wall
Clicked bc u my seeeester and it was like 4 mins lol
Love it! Thank you for clicking!! I am here for it!!!!
Wheres the video on trademarking, I’ll make a deal, respond and I’ll subscribe 😌
Oh and great video btw