You can have multiple DBA under one LLC so long as you follow state-specific rules. A DBA, or “doing business as” name, is a name that you operate under for your business. It’s different from your legal business entity (LLC, corporation or partnership). You can have more than one DBA as long as there is no overlap with the services you provide. Remember, however, that your state may have specific rules for multiple DBAs in an LLC. If you plan on having more than one person listed as a principal of your business, the company needs to be registered properly. Many people get this wrong and it ends up not being cost effective once they receive their Certificate of Entity Reservation. If you are operating with an agent or trustee instead of an officer and director structure, then your company documents should read “Operating Agreement” instead of Articles of Organization.
Types of DBA
- Doing Business As (DBA). A way of describing a type of business name that is different from the legal name of the business.
- Trade Name – A name that identifies a business’s products or services. It may or may not be the same as the company’s legal name.
- Assumed Name – A fictitious business name assumed by an individual to conduct a business.
- Fictitious Name – A name that a person or business uses that is different from the person’s or business’ actual name.
- Pseudonym – A name other than your real name used for various purposes such as artistic, medical, political, religious, etc.
- Additional name used by a company in marketing its product or service.
Reasons for Having a DBA in your LLC
- Protect your company from claims of unfair competition – In some cases, having a DBA name instead of your true legal name can help shield your company from claims of unfair competition.
- Protect your personal assets from business liabilities
- It’s a good idea to have a DBA name in order to protect your personal assets in case your business becomes liable for damages or a court judgement.
- Obtain a trademark
- You can use your DBA name to obtain a federal trademark. –
- Get financing – If you need financing to start or grow your business, a DBA name can help you obtain a business loan.
Registered Agent
A registered agent is a person or company that agrees to accept legal papers on behalf of another person or company. Your business should always have a registered agent in your home state. A registered agent is required for any business operating in the United States, as it allows for service of process. In other words, it’s how legal papers are served that allow a plaintiff to take legal action against a defendant. You will need to have a registered agent in your home state that accepts legal papers on behalf of your LLC. This protects you from being served with legal papers at your home. If you work from home and your name is on the door, you would be served with legal papers. A registered agent is required for any business operating in the United States.
Managing Member
A managing member is no different than a manager in a corporation. They are a member of the LLC who manages the day-to-day operations of the business. A managing member has the same rights as a corporate manager with respect to control and access to the company’s assets. In other states, a managing member has no legal authority in the company and is just another member of the LLC. Managing members have no special status under the law, like corporate managers. They are just like other members of the limited liability company. While operating as a managed LLC, you can’t have more than one managing member. If you want to give multiple people control over the company operations, use a manager-managed LLC.
Conclusion
A DBA is just a way of doing business that is different from the LLC’s legal name. When you change your LLC’s name, you generally don’t need to change your DBA. A DBA name can’t be misleading and it can’t suggest that you’re a type of organization that you aren’t. Having multiple DBAs under one LLC is allowed in most states so long as there is no overlap with the services you provide.