Can Two Businesses Have the Same Dba Name

Having a DBA — or "Doing Business concern As" name — for your small business organisation can assistance when it comes to connecting your fictitious visitor name to your production or service. It can too be used if you are a sole proprietor or opt to form a business entity such every bit a Limited Liability Company (LLC). But how does a DBA work for those who choose not to class a legal business organisation entity compared to those who do? And is there a limit to the number of DBAs that y'all tin can class? Let's look at these questions, equally well as when and how using DBAs can benefit your small business.

Operating Mulitple Businesses Without an LLC

Although the Limited Liability Company (LLC) is ane of the most popular types of business concern entities formed each year — with a growth charge per unit of 20.3 percent in the last 5 years — the electric current number of LLCs to sole proprietorships in the United States is fairly even. (As of 2021, there were approximately 21.six meg LLCs and 23 million sole-proprietorships.)

Most self-employed individuals fall nether the category of sole proprietor at some point. If you are a sole proprietor or independent contractor, the business concern is yours, and unfortunately, there is no separation or distinction between your personal assets and your business assets.

The good news is that whether or non you're an incorporated or unincorporated business entity, you tin can notwithstanding work under a fictitious or assumed name, more commonly referred to equally a DBA or "Doing Business concern Every bit." Having a DBA for a sole proprietorship will aid brand your product or service and give it its ain singled-out name as opposed to keeping it direct linked to the name of your business concern, which may but be your own legal name.

Whether you are a sole proprietor or have started an LLC, the steps of obtaining a DBA are similar. And the good news is that you can obtain multiple DBAs for your businesses depending on what your needs are and how your business grows.

For case, if you lot are a party planner and desire to aggrandize into baking cakes, cookies, cupcakes, etc., you can employ for a DBA and promote your new venture: Goodies-n-Sweets. Now if you co-operative off again and focus on entertainment, you tin brand a new side of the business concern and form Clowns-n-Town. Now, equally fun and like shooting fish in a barrel as this might all sound, there are some implications involved by not having an LLC, with the primary risk that there is no distinction betwixt your personal assets and your business assets, making you lot vulnerable to a lawsuit.

Operating Multiple Businesses with an LLC

As opposed to operating a business as a sole proprietorship, the master benefit of forming a business organisation as an LLC is that it offers legal protections and separates a concern owner'south personal assets from the company'south assets. Though the process of forming an LLC is more involved than working as a sole proprietor, for many, the benefits are worth the steps for creating this blazon of business entity.

If y'all operate more than one business, forming multiple LLCs will also help protect the other businesses by keeping potential liabilities segmented. This will help keep liabilities from spreading the chance of litigation to other businesses that y'all may own. The company debts will besides non touch on or be linked to personal assets.

Can I Use the Same DBA Proper name for Ii Entities?

For virtually states, 2 businesses volition not exist allowed to utilise the aforementioned DBA. Doing so will cause confusion, specially when the fictitious names are in the same manufacture. In order to use a DBA for your business, you must submit an awarding. Merely make certain that your fictitious name isn't already taken!

You can also use your DBA in multiple states, equally long as you have an LLC in those strange states. You tin can utilise the same fictitious name or tweak information technology to reflect specific locations. For example: Gold Coast Goodies-n-Sweets (California), Island Goodies-n-Sweets (Hawaii), East Coast Goodies-northward-Sweets (New York), etc.

How Many DBAs Tin can You Accept?

The brusk and to-the-point answer is equally many as you lot feel you lot demand for your business. There is no limit to the number of DBAs that you can have, but make sure to bank check your Secretary of State's website to brand sure.

Again, the benefit here — peculiarly as it relates to sole proprietors — is that you tin conduct concern under the name of your DBA as opposed to your legal name. For LLCs, it gives the opportunity to aggrandize branding and also operate a office of the LLC in a name different than what appears on the entity's original incorporation documents.

Filing for each DBA comes with a toll, which will vary by country or canton. DBAs will aid improve the visibility of your product and service and target a specific market. For case, Pete'south Party Planning business organization likewise advertises equally Goodies-n-Sweets besides equally Clowns-n-Town. And as the business grows, there may be a demand to branch into other directions. Just keep in listen that yous'll need to file separately for each DBA.

The Benefits of Having Multiple DBAs

Simply put, the benefits of having multiple DBAs nether one LLC are that you are able to grow and target your business better. This works just the same for a sole proprietorship. However, there are risks and benefits for both of these types of entities.

Some key pros of having a DBA for your sole proprietor business organization tin can include:

• Targeted branding: Your product or service will resonate with key markets and you'll take the flexibility of branching out and promoting your services to these specific client groups.
• Privacy protection: Y'all are no longer advertising your proper name just rather are now promoting the business organization nether a "fictitious" name.
• Added credibility: Lets clients and customers know that the business has the necessary experience and capabilities to meet their specific needs.

Cons for a sole proprietor include:

• Filing and maintenance costs: Filing for a DBA can toll every bit much equally $50 per application, but that varies past state.
• Liability risks: These can spread to dissimilar segments of the concern under separate DBAs.
• No exclusivity to the concern proper noun: Unlike a trademark, a DBA does not protect the assumed name that you are operating under. In fact, companies in other counties or states may use the same proper name. Your DBA name cannot exist used in your legal paperwork either, which may atomic number 82 to confusion with clients, vendors and creditors.

Although a number of these pros can as well apply with multiple businesses under one LLC, one distinguishing gene and benefit in a limited liability company is that it protects private assets by keeping them split from the business concern. Then if the LLC is sued, the liability is express to the LLC. This gene lonely may be reason plenty to consider incorporating your business.

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Source: https://www.incfile.com/blog/same-dba-name-for-two-entities#:~:text=For%20most%20states%2C%20two%20businesses,name%20isn't%20already%20taken!

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