DBA Vs. LLC: Do You Choose, Or Can You Have Both? (2026)

What a DBA Is

“DBA" stands for “doing business as.” It’s a name used instead of a company’s legal name. You can use a DBA with any business type, including a sole proprietorship, partnership, LLC, or corporation.

For example, suppose that you formed a plumbing business as “John Smith, LLC.” If you advertise as “The Plumbing Guy,” that name may be your DBA.

What an LLC Is

An LLC is a specific business structure. It’s a legal entity that exists separately from its owners.

As the name suggests, one of the most important benefits of an LLC is limited liability. The LLC’s owners generally aren’t liable for the company’s debts and liabilities. However, exceptions occur when an owner personally guarantees LLC liabilities or a party is successful in piercing the corporate veil.

Key Differences Between a DBA and an LLC

An LLC is a corporate entity, while a DBA is simply a name.

If someone were to start conducting business without forming a legal entity, the law would consider the business a sole proprietorship. Regarding LLC vs. sole proprietorship, the latter provides no liability protection. That means the owner’s personal assets are at risk when the company incurs debts and liabilities.

Adopting a DBA doesn’t affect the owner’s liability — the business is still a sole proprietorship with a new name. Forming an LLC, on the other hand, does limit the owner’s liability, as long as they properly separate their personal and business affairs.

How Each Is Taxed

DBAs don’t determine taxation because they’re simply operating names. If an LLC adopts a DBA, it’s still taxed as an LLC. Likewise, if a sole proprietorship adopts a DBA, it’s taxed as a sole proprietorship.

Setup Costs and Filing Requirements

LLC articles of organization must be filed with the state. The articles give the LLC’s name, address, and resident agent. The filing fee varies by state; for example, it costs $35 in Montana and $500 in Massachusetts.

Unlike LLC filings, DBAs aren’t necessarily filed with the state. For instance, in California, a DBA can be filed in the city or county clerk’s office. The filing fee for a DBA also varies. At $5, Iowa is on the lower end of the scale, while Nebraska is toward the high end at $100.

When to Choose a DBA

A DBA allows you to use a name other than your legal personal or business name. However, it isn’t a trademark. Contact a lawyer to discuss how to prevent others from using your brand.

When to Choose an LLC

An LLC is a legal entity that protects your personal assets. Note that an LLC isn’t your only option. You could form a corporation, a limited liability partnership, or another entity type.