When opening and operating an LLC some companies wish to have one business name as the name of their LLC and operate one or more small businesses under that LLC with a different name. When doing so they are operating the businesses as a DBA. DBA stands for ‘doing business as’ meaning the LLC is known by one name and the individual businesses are known to the public by a different name. For instance, let’s say you have an LLC known as ABC LLC but you have decided that you do not want to actually do business as ABC LLC but as a completely different name such as Nature Garden. This is when a DBA would be used, your business LLC is known as ABC LLC but your company is ‘doing business as’ Nature Garden, Therefore the public would know your company as Nature Garden but your registered LLC name with the state is ABC LLC. Essentially a DBA is used to put people on notice that an LLC is doing business as a different company name and let them know what the other name being used is. In this example, ABC LLC is doing business as Nature Garden. A DBA is very similar to an also known as like one would use if they go by different names personally. It is best used when an LLC company has multiple areas of business in which they operate and want to keep each under one registered LLC. However, they also want the public to be able to distinguish between the areas of services and therefore wish for each service area to have its own name that they are doing business as. For instance, ABC LLC is a registered LLC, but they operate a grocery store, a restaurant, and sells spices online. Each of their business ventures could be set up as a DBA with different names and all listed under the original registered LLC. To the public, it would appear that there are 3 different businesses but in reality, it is one business operating under 3 different names or DBAs. It is important to note that a DBA does not legally protect your business in any way, only a trademark can do this. If you have an LLC and have found that the name or branding is already used and cannot be trademarked, a DBA can be created for that and the DBA name and branding could possibly be trademarked. The best way to legally protect your business is to be sure that the business name(s) you are seeking to use for your company is available and can be trademarked prior to building up the brand and later finding out that it is too similar to a preexisting brand and cannot be trademarked. If you need additional information regarding LLC’s or DBA’s Business Law Attorney Briana Robertson would be happy to help. You can Schedule a consultation to speak about your business needs.
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Need additional information regarding LLC’s or DBA’s? Business Law Attorney Briana Robertson would be happy to help. Book your consultation today!
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