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LLC vs. DBA

Choosing between an LLC and a DBA? This article breaks down the pros, cons, and differences to help you decide which structure is right for your business.

It depends on what you’re looking for.

Some business owners want a formal business structure. Others just want to work under a different name. Many even use both: the LLC is the legal entity, and the DBA is the name the public sees.

If you’re comparing an LLC vs. DBA, it helps to understand what each one is and how they work. This guide explains the pros, cons, and key differences so you can see how these two business setups are commonly used.

The main distinction is that a DBA, or “Doing Business As,” is simply a registered business name, while an LLC is a legal business structure with its own rules and filings. Understanding this difference is an important part of comparing an LLC vs. DBA.

Quick Definition: DBA vs. LLC

A DBA (“Doing Business As”) is a registered business name. It lets you use a name that’s different from your personal name or your company’s legal name, but it does not create a separate business entity or provide liability protection. For example, if your name is Alex Lee but you want to sell cookies as “Sweet Bite Bakery,” you’d register a DBA.

An LLC is a legal business structure with its own filings and responsibilities. It creates a separate business entity, and many business owners choose it when they want a formal structure that separates business activities from personal activities.

Pros and Cons of an LLC

PROS

CONS

Liability protection: An LLC is a legal business structure separate from its owners that offers liability protection. If your business gets sued, your personal property (like your house or car) is protected.
Tax options: LLC owners can choose from different tax classifications, including the default pass-through taxation or, in some cases, S-Corp or C-Corp taxation.
Preferred by lenders or partners: Some banks, clients, or vendors may prefer working with a registered business entity.
Flexible ownership: An LLC can have one or many owners — they’re called “members.”
Can support growth: Many business owners use LLCs when they want a structured way to add partners or apply for loans.

Startup and maintenance costs: Most states charge formation fees and may require annual filings.
Financial separation: LLCs need to keep business and personal finances separate to maintain the structure.
Ongoing rules: Some states require annual reports or other formal steps.

Pros and Cons of a DBA

PROS

CONS

Simple and affordable: Registering a DBA is often quick and inexpensive — just register your business name.
Brand flexibility: A DBA lets you operate under a business name that’s different from your personal name.
No new legal structure required: Registering a DBA does not form a new business entity.
Useful for multiple brands: One owner or business can have more than one DBA for different products or services.

No liability protection: A DBA does not create a separate entity, so personal and business activities remain legally connected. If something goes wrong, your personal assets could be at risk.
Same tax setup as the underlying structure: Without a underlying structure, you still pay taxes as yourself (sole proprietor or partnership).
Limited recognition with lenders: Some banks may prefer working with formal business entities.

You can even have a DBA and an LLC at the same time. The DBA would just be the name your LLC uses in public, or the name of a branch of your business or product line.

LLC vs. DBA in Real-Life Scenarios

These examples show how different people might compare an LLC vs. DBA. They are educational only and not recommendations.

Example 1: Artist selling prints online.
An artist who wants to use a creative name, such as “Sunny Studio,” may register a DBA. However, they may still want to explore LLCs if you want a formal business entity that gives them liability protection.

Example 2: Dog groomer working with customers in person.
Working with animals usually means increased liability. Many groomers consider an LLC plus insurance to ensure they are protected.

Example 3: Freelance writer running multiple blogs.
Some writers use one LLC and create several DBAs to match different blog or brand names.

Example 4: Two friends starting a home cleaning business.
Co-owners may look at LLCs for the structure and to protect themselves given risks like having employees and equipment working in other locations.

LLCs and DBAs: Myths and Truths

Myth: “A DBA is the same as an LLC.”
Truth: A DBA is just a registered business name — it doesn’t create a new legal entity or protect your assets. An LLC is a separate legal entity.

Myth: “I can only use a DBA if I’m a sole proprietor.”
Truth: LLCs and corporations can also file DBAs to use different business names.

Myth: “If I have a DBA, I don’t need to register anything else.”
Truth: You still need a license or permit to legally operate your business, and you may want to register as an entity that protects your personal liability.

Myth: “I don’t need an LLC if I have business insurance.”
Truth: Insurance and business structures serve different purposes and work in different ways.

LLC vs. DBA: Key Differences

TOPIC	S-Corp	C-Corp
What it is	A formal legal business structure.	A registered name. Not a legal entity or business structure.
Legal protection	Offers limited liability as a separate legal entity.	None, you’re personally liable without an accompanying liability-protecting structure.
Taxes	The default is pass-through, but you can choose to be taxed like an S-Corp or C-Corp.	Depends on your base business structure. Without one, you pay taxes as yourself (sole proprietor or partnership)
Owners	One or more members.	Depends on the base structure of your business. (DBAs are not a structure.)
Ongoing rules	More rules – annual reports, keep finances separate, etc.	Minimal – just renew the business name every few years according to your state.
Credibility	Often preferred by banks, clients, etc.	Often seen as less credible due to no liability protection or formal structure.

When comparing an LLC vs. DBA, many business owners think about formality, protection, cost, public branding, and long-term plans. An LLC creates a legal business entity, while a DBA is simply the name a business uses in public. Some people use a DBA to test a business idea or build a brand. Others form an LLC when they want a structured setup with defined ownership. Both tools are used in many industries and can even be used together.

And if you need help, Rocket Lawyer is here to walk you through the process.

Key Takeaways

A DBA is a business name, not a business structure, and does not offer liability protection.
An LLCis a legal business entity that protects your personal property, like your car or house, if your business gets sued or owes money.
You can have a DBA and an LLC at the same time. The DBA is simply the name your LLC uses in public.

Published on 11/20/2025Written by Rocket Lawyer editorial staffReviewed by Legal Pros

At Rocket Lawyer, we follow a rigorous editorial policy to ensure every article is helpful, clear, and as accurate and up-to-date as possible. This page was created, edited and reviewed by trained editorial staff who specialize in translating complex legal topics into plain language, then reviewed by experienced Legal Pros—licensed attorneys and paralegals—to ensure legal accuracy.

Please note: This page offers general legal information, but not legal advice tailored for your specific legal situation. Rocket Lawyer Incorporated isn't a law firm or a substitute for one. For further information on this topic, you can Ask a Legal Pro.

Disclosures

This page offers general legal information, not legal advice tailored for your specific legal situation. Rocket Lawyer Incorporated isn't a law firm or a substitute for one. For further information on this topic, you can Ask a Legal Pro.