Does a DBA Protect Your Assets?

Jason (P) David
Last Updated: April 26, 2021
Date Published: April 13, 2021

A DBA does not protect your personal assets from any lawsuits that may arise. In order to protect your personal assets and separate them from your business assets, you would need to form a proper legal entity like an LLC (Limited Liability Company) or Corporation.

An LLC is a separate legal entity under which a business operates, separate from the business owner(s).

This means that if there are legal troubles with the business, the personal assets of the owner(s) are protected.

One common misconception is that a DBA is a type of business structure or business entity.

A DBA isn’t a business structure and doesn’t provide any personal asset protection like an LLC or corporation.

It is simply using a different name to operate your business under.