LLC versus DBA
What are they and which should I have for my business?
Written by April Ackman | April 11, 2024 | 2 min read
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LLC:
A Limited Liability Company, or LLC for short, is created by filing Articles of Organization with your Secretary of State.
An LLC is an option for setting up a business in which the owner(s) of the company is/are “shielded,” that is, they are not personally liable for the debts of the business and cannot personally be sued if the business is sued.
Once an LLC is registered with the state, no one else can take that name for a new LLC in that state.
The cost of an LLC will vary by state and will also depend on if you hire someone to file for you. (In the state of Missouri, an LLC is $50 and is perpetual, that is, the LLC never expires.)
DBA:
Stands for “Doing Business As” and can also be referred to as a “Fictitious Name” or trade name.
You can think of a DBA as a “mask.” If you no longer like the name of your LLC (or if you never did), or you are simply trying to rebrand your business, you can choose to register a DBA under the LLC. You can have multiple DBAs under an LLC.
Just as with an LLC, cost will vary by state. In Missouri, a DBA is $7 and expires after 5 years at which time it must be renewed or is at risk being re-issued. Some states require you file at the county level. Be aware that there can be more than one applicant with the same DBA. There is no exclusivity with a DBA name.
You must use your LLC on government and legal documents, but you can put your DBA everywhere else: signage, website, merch, etc.
Please note that you should always reach out to your Secretary of State (SOS) to check the rules for your state. This document is based on information from our home state (Missouri).
Missouri Secretary of State. Last accessed Dec. 11, 2023.
Forbes. Last accessed Dec. 11, 2023.
Disclaimer: Note that all information in this document is intended to be a general overview only and is not intended to constitute legal or financial advice. Consult with your lawyer or accountant regarding your circumstances. Information was accurate as the date of publication.
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