Operating under a 'Doing Business As' (DBA) name, also known as a fictitious name or trade name, is common for sole proprietors and simple partnerships. It allows you to conduct business under a name different from your personal or legal business name. However, a DBA offers no legal separation between you and your business. This means your personal assets are at risk if the business incurs debt or faces a lawsuit. Converting your DBA to a Limited Liability Company (LLC) is a strategic move that provides significant benefits. An LLC creates a legal shield, separating your personal assets from your business liabilities. This distinction is crucial for protecting your home, savings, and other personal property from business-related claims. Furthermore, an LLC often lends greater credibility and can make it easier to secure financing or enter into contracts. This guide will walk you through the process of changing your DBA to an LLC, outlining the steps involved and the advantages of making this structural upgrade.
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