Can an LLC Also Be a DBA? – Yes, But Avoid This Mistake + FAQs
- February 21, 2025
- 7 min read
Ever wondered if your LLC can have an alter ego name for your business?
If so, you’re not alone. In fact, nearly 20% of small businesses in the U.S. operate under a name different from their legal entity name.
Can an LLC Also Be a DBA?
Yes – an LLC can operate under a DBA name. Under U.S. federal law, there is no prohibition on a Limited Liability Company (LLC) using a different name for doing business. In other words, your LLC’s official name can be one thing, and it can also do business under another name that you register as a DBA (short for “Doing Business As”). The DBA is simply an alias or trade name for your company. Crucially, the LLC remains the legal entity behind the scenes – it’s the LLC that owns the business, signs contracts, and is responsible for debts and taxes, while the DBA is just the name it presents to the public.
At the federal level, agencies like the IRS don’t treat a DBA as a separate legal entity. For example, when you obtain an Employer Identification Number (EIN) for your LLC, that EIN covers all business conducted by the LLC, even if you use a DBA.
The IRS will care about the LLC’s legal name and EIN on tax forms, but you can still list a “trade name” (DBA) if needed for clarity. There’s no separate federal EIN or tax filing for a DBA alone – the LLC and DBA are tied together for tax purposes, with the LLC being the entity taxed.
However, DBAs are regulated at the state (and sometimes county) level, and this is where variations come in. Each state has its own rules for registering and using a DBA for your LLC:
- State Registration: In all states, if an LLC wants to use a name other than its legal name, it must register that alternate name. This process is often called filing for a fictitious business name, assumed name, or trade name. You’ll typically file a form and pay a fee to the state’s Secretary of State or a local county clerk’s office.
- Name Restrictions: States usually do not allow two businesses to have the same name in the same jurisdiction. So your desired DBA name must be unique (at least within your county or state) and not misleading. For instance, you generally cannot include corporate suffixes like “Inc.” or “LLC” in a DBA if your business isn’t actually a corporation or LLC, as that would mislead the public.
- Approval and Usage: Once your LLC’s DBA is registered and approved, your LLC is legally permitted to use that name in business. You can then put the DBA name on your storefront, business cards, marketing materials, and even have a bank account that accepts checks written to the DBA. Importantly, contracts should ideally mention both names (e.g., Awesome Bakers LLC d/b/a Sweet Treats), to clearly tie the DBA to the LLC in legal documents.
- State-by-State Differences: While the general concept is the same, specific requirements vary by state. Some states require DBA filings at the state level, others at the county level, and some require public notice (such as publishing the new name in a local newspaper). We’ll explore a comparison of a few states’ rules in a later section.
In summary, an LLC can use a DBA with no issue under federal law, as long as you follow the appropriate state or local procedures to register that DBA. Your LLC’s liability protection and legal status are unaffected – you’re simply adding a new public-facing name. Next, let’s look at some common mistakes to avoid when setting up a DBA for an LLC, so you can do it the right way.
7 Common Mistakes to Avoid When Your LLC Uses a DBA
Setting up a DBA for your LLC can be straightforward, but there are several pitfalls business owners often stumble into. Here are seven common mistakes and misconceptions to watch out for:
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Assuming a DBA is a Separate Legal Entity: A DBA does not create a new company. It’s just a registered nickname for your existing LLC. One frequent mistake is thinking that a DBA has its own liability protection or tax status. In reality, any business done under the DBA is still legally the LLC. If “Smith Holdings LLC” does business as “Sunshine Cafe,” it’s the LLC that’s responsible for the cafe’s debts and obligations. Don’t treat the DBA as an independent company – always remember it’s your LLC operating under another name.
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Not Registering the DBA Properly: Some owners start using a new business name without officially registering it, which can lead to legal issues. Most states require you to file a DBA registration before you start using the name publicly. Failing to do so can result in fines or inability to enforce contracts under that name. Always check your state and county requirements and complete the necessary filings (and any required newspaper publications or notices) to make the DBA official.
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Neglecting Name Searches and Conflicts: It’s a mistake to pick a DBA name without researching it first. Just because the Secretary of State or county approved your filing doesn’t guarantee the name is conflict-free. Do a thorough search for existing trademarks, other business names in your industry, and domain name availability. This helps avoid accidentally infringing on another company’s name or brand. For example, if your LLC wants to DBA as “Galaxy Tech Solutions,” make sure no one else in your state (or a competitor in another state) is already using that name or has it trademarked, or you could face cease-and-desist letters later.
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Forgetting to Include the LLC in Legal Agreements: When signing contracts or official documents, some business owners mistakenly sign only under the DBA name. This can create confusion about who is liable. To be safe, use the full legal name of the LLC along with the DBA in contracts (e.g., “Greenfield Ventures LLC, d/b/a Greenfield Marketing”). This makes it clear the LLC is the party to the agreement. Similarly, if you’re issuing invoices or signing leases, somewhere on the document it should reference the LLC name (even if the letterhead says the DBA) to avoid any doubt that the LLC stands behind the DBA.
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Assuming a DBA Grants Exclusive Rights or Trademark Protection: Registering a DBA gives you the right to use a name in a certain locality for business, but it doesn’t give you nationwide exclusive rights. A common pitfall is assuming no one else can use your DBA name. In reality, another business in a different state (or even the same state, if allowed) might use a similar name, and a DBA doesn’t stop them. Only a trademark can give broader brand protection. So, if your DBA name is core to your brand, consider trademarking it. Otherwise, be prepared that a DBA is more about compliance and public record than locking down a brand name.
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Not Renewing or Keeping the DBA Active: Many states require that you renew your DBA registration periodically (often every 5 years, but it varies). Busy entrepreneurs often forget this. The risk is that your DBA can expire without you realizing it, meaning you’re technically not legally using that name anymore. Mark your calendar with renewal deadlines as soon as you file. Likewise, if any of your LLC’s information changes (like address or management) as listed on the DBA paperwork, update it as required by your state’s rules. Keeping the DBA record current and active is crucial to stay compliant.
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Opening Separate Bank Accounts or Mixing Finances Improperly: While you can accept payments made out to the DBA name, those funds still belong to the LLC. A mistake is trying to open a completely separate bank account in the DBA’s name alone or treating the DBA as a different pot of money. The correct approach is to inform your bank of the DBA (once it’s registered) so they can add the DBA as an alias on the LLC’s bank account. That way, checks written to “DBA Name” can be deposited. Don’t mix personal funds or create unlinked accounts thinking the DBA is separate – maintain clear financial records under the LLC for everything, DBA included.
Avoiding these mistakes will save you headaches and help you leverage a DBA properly. Next, let’s clarify some of the key terms and concepts at play, so you fully understand the lingo and legal context when talking about LLCs and DBAs.
Key Terms and Definitions (LLC vs DBA and More)
When discussing whether an LLC can be a DBA, it’s important to understand the terminology. Here are some critical legal and business terms broken down in plain language:
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Limited Liability Company (LLC): An LLC is a legal business entity structure that provides its owners (called members) with limited liability protection. This means the owners are generally not personally responsible for business debts or lawsuits – the LLC is responsible as its own legal “person.” An LLC is formed by registering with a state (typically by filing Articles of Organization). It has an official legal name (the name in its formation documents). For example, “Tech Innovators LLC” is an LLC’s legal name. LLCs combine some benefits of corporations (liability protection) with the flexibility and tax simplicity of sole proprietorships/partnerships.
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Doing Business As (DBA): A DBA is not a legal entity, but rather a fictitious or assumed name under which a business operates. It’s sometimes called a fictitious business name, assumed name, or trade name. When you register a DBA, you’re simply saying “My company X will also be doing business under the name Y.” For instance, if “Johnson & Associates LLC” wants to operate under the brand name “Sunset Marketing”, it would file a DBA so that it can legally use the name Sunset Marketing while still being Johnson & Associates LLC on the books. A DBA registration ties the public name to the legal name in the official records. Remember, a DBA doesn’t create a new company or change your LLC’s legal name; it’s just a permission to use an alternate name publicly.
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Legal Name vs. Trade Name: The legal name of your business is the official name registered with the state when you formed the business. In the case of an LLC, it usually includes the suffix “LLC” and appears on all formation documents. The trade name is the name the public sees and uses, which might be different from the legal name. If you have a DBA, that DBA is your trade name. Some businesses operate exclusively under their legal name (and that’s fine), while others use trade names for marketing. Example: Legal name: Elegant Eats LLC. Trade name/DBA: Sunny Side Catering. All contracts and legal filings use Elegant Eats LLC, but customers know the business as Sunny Side Catering.
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Fictitious Business Name Certificate: This is the form or certificate you file with a government office to register a DBA. Depending on your location, you might file it with the Secretary of State, County Clerk, or another local agency. Once approved, you receive a certificate or confirmation that “ABC LLC is now doing business as XYZ.” This is often required to open bank accounts under the DBA name or to show proof of the name change to clients and vendors.
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Assumed Name Certificate: Another term for the document registering a DBA, used in some states (for example, Texas uses “Assumed Name Certificate” for DBAs). It serves the same purpose of linking the assumed name to the legal entity.
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Trademark: It’s worth distinguishing a trademark from a DBA. A trademark is a form of intellectual property registration that gives you exclusive rights to use a name or logo in connection with certain goods or services, federally (via the USPTO) or within a state. Registering a DBA does not give you trademark rights. Two companies in different states might have the same DBA name, but only a trademark can prevent others from using that name in commerce nationwide. In short, a DBA is about official permission to use a name locally/legally, while a trademark is about brand protection.
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Sole Proprietorship: A sole proprietorship is a one-owner business that isn’t a separate legal entity (the owner is the business legally). Sole proprietors often use DBAs to operate under a business name. The difference is, if a sole proprietor doesn’t file a DBA, the business name is just the owner’s personal name by default. For example, John Smith selling crafts with no DBA would just be “John Smith” as the business name. With a DBA, he could be “John’s Craft Creations” without having to form an LLC or corporation. For an LLC, by contrast, the LLC already has its own legal name, but it can choose to get a DBA for branding.
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Foreign Qualification: If your LLC expands to do business in another state, you must register as a foreign LLC in that new state. During that process, if your LLC’s legal name is not available in the new state (perhaps another company there already has a similar name), the state might require you to use a different name in that state – effectively a DBA for that jurisdiction, often called a foreign assumed name. This is a scenario where an LLC is required to get a DBA in order to comply with another state’s naming rules.
Understanding these terms lays the groundwork. Essentially, an LLC is the entity and a DBA is just a name the entity can use. Now, let’s solidify this understanding with some real-world examples of LLCs using DBAs.
Real-World Examples: How LLCs Use DBAs (Illustrated)
Sometimes the abstract concepts become clearer with concrete examples. Here are three detailed real-world scenarios showing how an LLC might use a DBA, each illustrated with a table for clarity:
Example 1: One LLC, Multiple Business Lines
Imagine an entrepreneur has one LLC but runs two distinct businesses under it.
Scenario: Lisa formed Greenfield Ventures LLC as a holding company. Under that one LLC, she operates a cafe and a boutique shop. She wants each customer-facing business to have its own identity. Lisa registers two DBAs: one for the cafe and one for the boutique.
LLC Legal Name | DBA Name | Business Type | Reason for DBA |
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Greenfield Ventures LLC | Sunrise Cafe | Coffee shop / Cafe | To give the cafe its own brand identity separate from the generic holding company name. |
Greenfield Ventures LLC | Moonlight Boutique | Retail clothing boutique | To brand the clothing store distinctly, without creating a separate LLC for it. |
Explanation: Greenfield Ventures LLC remains the single legal entity owning both the cafe and the boutique. By using DBAs, Lisa’s customers see “Sunrise Cafe” on the storefront and “Moonlight Boutique” on the boutique’s sign, rather than the name Greenfield Ventures LLC. Internally, however, all contracts (leases, supplier agreements) and finances (bank accounts, taxes) flow through Greenfield Ventures LLC. The DBAs allow one LLC to present two separate brand faces to the world. This saves the complexity of forming multiple LLCs while still tailoring the brand to different audiences. Lisa must remember to maintain the DBA registrations (likely at the county or state level) for both names and ensure any public filings or renewals are handled for each. If someone sues Sunrise Cafe, they are actually suing Greenfield Ventures LLC (since that’s the entity behind the DBA).
Example 2: Rebranding with a Market-Friendly Name
Sometimes an LLC’s official name isn’t ideal for marketing, so a DBA is used to put a better foot forward.
Scenario: Tasty Treats LLC is a bakery business. The owner, Jamal, realized that the name “Tasty Treats LLC” is a bit plain and includes the legal suffix which he’d rather drop in advertising. He decides to use “Sweet Sensations Bakery” as a DBA for a more memorable, descriptive brand name.
Original LLC Name | DBA Name | Why Use a DBA? | Outcome for the Business |
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Tasty Treats LLC | Sweet Sensations Bakery | Original name was generic and included “LLC”, DBA name is catchy and descriptive | Brand recognition improved; customers remember the bakery by its catchy name, while all legal contracts remain under Tasty Treats LLC. |
Explanation: Jamal files a DBA registration in his state for “Sweet Sensations Bakery”. Now he can put up a sign that says Sweet Sensations Bakery and market his shop with that name. Customers simply know the bakery by the DBA. On the legal side, invoices, permits, and the lease might still carry the full legal name (or both names). If Jamal signs a contract with a catering client, he might sign as Tasty Treats LLC d/b/a Sweet Sensations Bakery. The DBA allowed Jamal to rebrand without having to create a whole new company. This is especially useful because changing an LLC’s legal name can be a hassle and would still require re-filing in some places; using a DBA is often quicker for branding purposes. The key is that “Sweet Sensations Bakery” has no separate legal standing – it’s just what Tasty Treats LLC calls itself to the public.
Example 3: Expanding to a New State with a Different Name
When an LLC expands to a new state, sometimes it can’t use its original name due to availability or legal rules, and a DBA becomes necessary.
Scenario: BrightStar Tech LLC is registered in California. They want to do business in New York, but discover a New York company already uses “BrightStar Tech” in its name. To register as a foreign LLC in New York, they must choose a different operating name. They decide on “BrightStar Innovations” as their DBA in New York.
Home State LLC Name | New State DBA Name | Reason for Different Name | Compliance Steps Taken |
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BrightStar Tech LLC (California) | BrightStar Innovations (New York) | Original name not available in NY due to similarity conflict | Filed as foreign LLC in NY under a fictitious name “BrightStar Innovations”; registered that name as an assumed name in NY. |
Explanation: In this case, BrightStar Tech LLC remains the legal name in California (and overall). When registering in New York, the state required a “fictitious name” because another business was too close to “BrightStar Tech” in name. By registering BrightStar Innovations as an assumed name in New York, the company can operate there without confusion. All their marketing in New York uses BrightStar Innovations, and contracts in New York might list BrightStar Tech LLC, known in New York as BrightStar Innovations. This example shows how a DBA can be used to adapt to state rules and avoid legal name conflicts. It’s essentially a state-specific DBA forced by regulation. The LLC will need to keep up the assumed name registration in New York as long as it does business there. If the conflicting company ceases to exist, they could possibly drop the DBA, but that would involve formally changing their foreign registration name again. For now, the DBA is a convenient fix that allows expansion.
These examples demonstrate the flexibility and utility of DBAs for LLCs: you can run multiple brands, rebrand for marketing appeal, or comply with other jurisdictions’ requirements, all without losing the protection and simplicity of your one LLC. Next, let’s compare how different states handle DBAs and highlight some legal nuances you should know.
State-by-State DBA Laws and Legal Considerations
DBA rules and processes are not uniform across all states. While the underlying principle is the same (register the name, publish notice if required, and maintain the registration), the details differ by state (and sometimes by county). Here we’ll compare a few key points across states and discuss legal implications, including IRS considerations:
1. Registration Office – County vs State: In some states, you register a DBA with the state government, while in others you do it at a county level (or both):
- California: Requires filing a Fictitious Business Name (FBN) statement at the county level. If your LLC operates in multiple counties in California, you may need to file in each county where you do business under the DBA. California also requires you to publish a notice of the fictitious name in an approved newspaper for several weeks after filing. The FBN registration in CA typically expires after 5 years and must be renewed to remain valid.
- Texas: Uses an Assumed Name Certificate. Texas LLCs must file this certificate with the Secretary of State and usually also file a copy with the county clerk in the county of the principal office. Texas assumed names are valid for a maximum of 10 years, after which they expire if not renewed.
- Florida: Requires an online (or mail) filing with the Florida Department of State (Sunbiz) for a fictitious name. Uniquely, Florida mandates that you advertise your intent to register the DBA in a newspaper at least once before filing (a proof of publication may be needed). The registration must be renewed every 5 years in Florida, and the state sends a reminder.
- New York: An LLC in New York files a Certificate of Assumed Name with the NY Department of State. New York charges a state filing fee (e.g., $25) plus additional county-specific fees for certain counties (like the five counties of New York City). There is no statewide newspaper publication requirement for a DBA in NY (though NY does have publication requirements when an LLC is first formed, that is a different process). Once filed, the assumed name remains in effect indefinitely until you discontinue it (no renewal period, unlike some states).
2. Name Uniqueness and Restrictions: All states prohibit you from using a DBA name that is already registered by another business in the same jurisdiction. They also usually forbid using designators like “LLC”, “Inc.”, or other entity-sounding words in a DBA if it could confuse the public about the business structure. For example, if your business is a sole proprietorship, you can’t include “LLC” in your DBA (because that would falsely imply you have an LLC). For an LLC using a DBA, you typically do not include the “LLC” suffix in the DBA itself – the DBA is meant to be a standalone trade name. However, the paperwork will clearly connect that trade name to your LLC’s official name.
3. Disclosure and Public Notice: Many jurisdictions treat DBA filings as a matter of public record and consumer transparency. This means that anyone can look up who is behind a DBA. As mentioned, states like California and Florida even require publishing the name in a newspaper to alert the public. The goal is to prevent businesses from hiding behind a fake name without accountability. Legally, if your LLC has a DBA, you are required to disclose the true owner behind that DBA in the registration. So if someone looks up “Sweet Sensations Bakery” in the state/county registry, they’ll find that it’s owned by Tasty Treats LLC (from our example). This openness is a legal feature designed to protect consumers and creditors.
4. IRS and Tax Implications: From a tax perspective, the DBA itself has no separate status. The IRS doesn’t require a separate tax ID or tax return for a DBA. All income and expenses from the business, whether invoiced under the LLC name or the DBA name, are reported on the LLC’s tax return (or the owner’s return if it’s a single-member LLC taxed as a disregarded entity). When you apply for an EIN for an LLC, the IRS form does allow you to list a “Trade name” in addition to the LLC’s legal name. This is useful if you already have a DBA in mind. However, it’s not mandatory to have a DBA listed with the IRS. If you obtain a DBA after you already have an EIN, you don’t need a new EIN – you simply continue using the existing EIN. In short, for federal tax purposes, nothing changes when an LLC adopts a DBA. Just ensure that when you fill out tax forms, if there’s a field for “Business name” and “Trade name (if any)”, you use them appropriately (legal name in the main field, DBA in the trade name field).
5. Multiple DBAs: Legally, an LLC can have multiple DBA names. There’s typically no statutory limit to the number of DBAs one business entity can register, as long as you pay the filing fees and each name is unique and properly filed. Some entrepreneurs use this to run several brands under one LLC, as we saw in the example. The only consideration is managing the compliance for each (multiple filings, renewals, etc.). Also, keep in mind that each DBA is just an alias of the same entity – having five DBAs doesn’t compartmentalize liability or finances within one LLC. They all funnel back to the one LLC. If at some point the multiple ventures under one LLC grow large or carry separate risks, the owner might consider forming separate LLCs. But as far as DBA laws go, you could register “Alice’s Bakery LLC” doing business as 1) Alice’s Cakes, 2) Bob’s Bread, 3) Charlie’s Catering, and so on, with each DBA filed separately.
6. Ending or Changing a DBA: If you decide to stop using a DBA, most states require a cancellation or withdrawal filing to formally drop the assumed name from the records. Failing to do so could mean you’re still on the hook for renewing it or people might think your business is active under that name. If you want to change to a different DBA, you usually have to file a new registration for the new name – edits to a DBA name aren’t generally allowed; instead you’d withdraw the old name and file a new one. Keep this in mind if you plan to pivot to a new brand name in the future.
7. Comparing Cost and Convenience: The cost and effort to maintain a DBA differ by state. Some states have nominal fees (like under $50) and no renewals (one-and-done filing), while others have recurring fees or publication costs. For example, Illinois requires publishing a notice in a newspaper and has a three-year renewal cycle for DBAs, whereas Georgia has a simpler county-level filing without state renewal requirements. It’s wise to check your state’s specific process: a quick visit to your state’s Secretary of State or business bureau website can clarify the steps. Legal services or online filing companies also often summarize state-by-state DBA requirements.
In all cases, remember that a DBA does not change the underlying legal reality: the LLC is the entity engaging in business. The state-level differences mostly affect how you register and maintain the DBA. Once registered, using the DBA is relatively straightforward no matter where you are: you can advertise under the name, open a bank account to accept payments in that name (tied to the LLC’s account), and hold yourselves out to customers with that name. Just stay on top of each jurisdiction’s renewal rules and keep your records updated.
With these comparisons in mind, you should have a solid understanding of the legal landscape around LLCs and DBAs. Finally, let’s wrap up with a quick-hit FAQ section, addressing common questions (the kind often seen on forums or Reddit) about LLCs and DBAs in a concise yes/no format.
FAQs: Quick Answers to Common LLC & DBA Questions
Q: Is a DBA the same as an LLC?
A: No. A DBA is just a registered nickname for a business, while an LLC is a legal business entity. An LLC can have a DBA, but a DBA by itself isn’t an LLC.
Q: Can an LLC have multiple DBA names?
A: Yes. An LLC can register and use multiple DBAs as needed. Each DBA must be filed according to local requirements, but they all tie back to the same LLC.
Q: Do I need a separate EIN for a DBA under my LLC?
A: No. You do not need a new EIN for a DBA. The LLC’s EIN covers all business conducted by the LLC, even under different DBA names.
Q: Should I include “LLC” in my DBA name?
A: No. A DBA is typically the name without the LLC designation. The DBA is meant to be a standalone brand name, while the legal name (with LLC) remains on official records.
Q: Does having a DBA affect my LLC’s liability protection?
A: No. Using a DBA does not change the liability protection of your LLC. The LLC still provides the legal shield; the DBA itself offers no separate protection (it’s not a legal entity).
Q: Can two different companies have the same DBA name?
A: Yes, in different jurisdictions. Within the same state or county, the name usually must be unique. But a name used in one state as a DBA might be used by another business elsewhere, since DBAs are locally registered.
Q: Is a DBA required for an LLC to use a different name publicly?
A: Yes. If an LLC wants to operate under any name other than its exact legal name, it generally must file a DBA (or equivalent) in the relevant jurisdiction to do so legally.
Q: Can I open a bank account with a DBA name?
A: Yes. Once your DBA is registered, you can typically add the DBA name to your LLC’s bank account or documentation. The account will still be under the LLC, but it will accept transactions in the DBA name.
Q: Does a DBA give me any trademark rights to the name?
A: No. A DBA does not confer trademark rights. It only registers the name for legal usage in business. If protecting the name is important, consider filing a trademark separately.
Q: LLC or DBA – which one do I need to start a business?
A: They’re not mutually exclusive. If you want liability protection, start an LLC. If you then want to use a different name for that business, get a DBA. A DBA alone won’t create a company.