What is an LLC?
LLC stands for Limited Liability Company. Forming an LLC is the simplest way of structuring your business to protect your personal assets. Limited liability companies are relatively easy to form and maintain with little paperwork.
Basic Steps
- Name your LLC
- Secure an Employer Identification Number (EIN) – fast and free here.
- Register LLC with Your State
- File a Certificate of Organization (In Some States)
- Create an Operating Agreement
- Open a business bank account
What is a DBA?
DBA is simply an acronym for “doing business as.” It is sometimes referred to as a trade name, fictitious business name, or assumed business name. A DBA allows a business to operate under a name that is different from its legal name. For example, if John Smith wants to operate his cleaning business as ABC Cleaning, he will need to file for a DBA.
Basic Steps
- Choose a name and ensure availability
- Register your name (In Some States)
- Complete and file required forms
- Publish notice (In Some States)
- Secure an Employer Identification Number (EIN) – fast and free here.
- Open a business bank account in your DBA name
What is the difference between an LLC and a DBA?
The biggest difference between a DBA and an LLC is liability protection. Under a DBA, there is no distinction between the business owner and the business. The business owner is liable for all expenses incurred on behalf of the business. On the other hand, an LLC provides limited liability protection. The business owners’ personal property remains completely separate from the business. In addition, a DBA does not provide any tax benefits.
* These resources are provided for informational purposes, and are not endorsed by Therapy Source. We encourage you to conduct your own search or seek professional advice regarding the formation of your LLC or DBA.