One LLC with many DBAs
There are instances where establishing new businesses under an existing LLC makes a lot of sense. For example, suppose you operate a catering business that serves a wide variety of clients, but you also provide wedding planning services that may or may not include catering. You can register a catchy doing business as (DBA) name, like “I Plan Weddings,” under your main LLC. This allows you to, for instance, open a bank account to deposit checks written out to “I Plan Weddings.”
If you register a DBA name under an existing LLC, make sure the name is not already in use by another business. In most states, you may be required to register your DBA with the Secretary of State. You may also consider filing an Article of Amendment to your LLC, if the new DBA changes the nature of your LLC.
Liability protection under a single hub
Operating a sole proprietorship or partnership under your own name or a DBA is simple, but also opens you up to personal liability. A good way to protect your personal assets — whether you run one business or a dozen — is to form an LLC to run your businesses under. For instance, if one of your products causes an injury, a customer can sue your LLC but not you personally. Without an LLC, you personally could be the defendant in such a claim.
All DBAs held under a single LLC, however, are impacted by any judgments or claims against that LLC. The administrative simplicity and cost savings of operating just one LLC should be weighed against potential risks. If your smaller wedding planning business, for example, is sued for breach of contract, the cost of litigation could cause financial problems for your primary catering business because it’s part of the same LLC.
Take the next steps:
- Register your business.
Protect your personal assets by registering an LLC to run all your businesses under. With a Rocket Legal+ membership, your first business registration filing is FREE (excluding state fees).
- File your DBA name.
Filing your DBA for any new venture under your LLC is easy and affordable with the Rocket Lawyer DBA registration service. Start building your new business venture’s brand from the beginning.
- Get everything legal all in one place.
Save time, customize contracts and legal documents, and if you have legal or tax questions, get affordable advice from a Legal Pro.
If you have more questions about running multiple businesses under a single LLC, reach out to a Rocket Lawyer network attorney for affordable legal advice.
This article contains general legal information and does not contain legal advice. Rocket Lawyer is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.
