What is the difference between assumed name and llc

Some states may have additional requirements, and banks will often need proof of the DBA name before you can open a business account.

However, for the most part, corporations will satisfy their state requirements with their incorporation documents — unless they really feel compelled to create a new name as well. You might still be wondering if a DBA name is really necessary or even useful for you. If your company does not operate in a state where DBAs are required by law, you may discover some instances in which having one can benefit or hurt you.

Here are a few points to consider:. We offer the know-how to streamline the establishment of your company as well as a deep pool of resources that can help you on your way. To learn more about how our services can help, just visit our website to get started today. Find out what you need if you have a DBA. If you have formed an LLC but wish to conduct its business under a different name, you will need to formally register that name as a DBA, which is typically a simple process.

Sole proprietorships are inexpensive to form and give you more freedom and control, but they come with some significant drawbacks. Use this checklist to learn about which business licenses and permits you may need. If you'd like to form an LLC in Texas, you'll need to follow specific requirements. Starting Your LLC. What Is a DBA? Classic DBA scenarios include: An established business wants to create an offshoot company or rebrand itself.

A company wants to expand into a new state but finds their current business name is already taken in that location. Creating a DBA easily solves that problem. DBAs have some downsides, however: It is neither a business structure nor a legal entity.

It's simply a name that brands your business , not your legal name. It does not necessarily give you exclusive rights to the DBA name. Depending on your state's rules, someone else could file the exact same name and be approved for use. 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? Costs vary by state. If you hire an attorney to assist you or file online, you may incur more fees. A "doing business as," or a DBA and a limited liability company are two different ways to refer to a business. Both names can be the same, or two different names can be used for the same business. A DBA is often referred to as a fictitious business name, and is the name most commonly used on marketing materials, advertisements and signage for a business. A limited liability company is a business structure used by a company to govern its operation and distribution of profits and losses to members at tax time.

Because the names can be different, you can file formal paperwork registering your LLC using a legal name of your choice, such as John Smith Plumbing LLC, while using a fictitious name for day-to-day operations, such as John's Johns.

Because DBAs do not offer liability protection, the assets of your dog walking business will be on the line if anyone sues your landscaping company. In order to protect the assets of the dog walking business from debts of the landscaping business and vice versa , you could register a new LLC for the landscaping company.

Forming a separate LLC means additional filings and fees, but it would allow you to keep the assets of each business protected from debts and liabilities of the other business. The information provided on this site is not legal advice, does not constitute a lawyer referral service, and no attorney-client or confidential relationship is or will be formed by use of the site.

The attorney listings on this site are paid attorney advertising. In some states, the information on this website may be considered a lawyer referral service. Please reference the Terms of Use and the Supplemental Terms for specific information related to your state. Grow Your Legal Practice. Meet the Editors. What would you like to name your LLC? Need time on your business name? Start now and decide later.