Does a DBA protect your Business Name?
A registered “doing business as” or DBA does not provide any legal protection on its own, even though most states require you to register a DBA if you are using one. Your business structure is what determines your level of liability protection.
A Doing Business As (DBA), also known as fictitious business names, trade names, or an assumed name, is a name that the legal owners of a business register with the state.
One common misconception is that a DBA is a type of business structure or business entity.
It is simply using a different name to operate your business under.
An entrepreneur or small business owner who starts a new business and only registers a DBA name, is actually just creating a sole proprietorship with a DBA name.
Sole proprietorships do not offer personal asset or liability protection.
If you have a sole proprietorship, we recommend converting to an LLC so that you can get the added benefits of liability protection.
Limited Liability Company’s provide personal asset protection because they are separate legal entities.