DBA or LLC, what is the difference?

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When starting a business its important to choose between registering only a Doing Business As “DBA” at your local county office or setting up a Limited Liability Company “LLC” with your state.

The basic type of business registration is the “DBA” with your local county. This type of registration is very simple, low cost and easy to register. A DBA helps you register a business name and address on your behalf. Important legal notice: A DBA will not protect your personal assets (bank accounts, properties, cars, etc) against claims brought against your business.

An LLC registration is a complete business registration before your state. Setting up your business as an LLC will help create a separation between you as the owner(s) and the business. In order words, the business will be a separate entity from its owners as if it was another person. Your LLC will have its own business bank account, be able to sign contracts, purchase property, insurance, and do many other business activities. Important legal notice: An LLC may protect your personal assets (personal bank accounts, properties, cars, etc) against claims brought against your business. Many business owners elect to become an LLC because of the protection it offers. Please seek the advice of an attorney for more information.

Consider the following before registering your business:

• Type of business activity
• Will you be exposed to human error?
• Will human error cause problems for your clients?

There is so much more to registering a business that it is important to talk to an accountant and attorney to help guide you in the right direction so that you can take the steps necessary to register your business correctly.

If you need assistance with your business finances or taxes feel free in contacting us at Business Solution Center | [email protected] | 956-466-4503 in Brownsville Texas.