How To Add Dba To Existing Llc

DBA to LLC

Converting your DBA to an LLC volition protect your personal assets and permit you to abound your small business concern.

Read ahead to learn about the benefits of a DBA vs LLC and the steps to form an LLC.

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Last Updated: 2021-x-08

Convert a DBA to an LLC

While changing your business from a DBA (sole proprietorship) to an LLC isn't an overly complicated procedure, it'due south important to follow the correct steps to forming an LLC.

A doing business organisation as name (DBA) isn't a business organisation structure—it'south a brand name for a business. Many business organisation owners use the term DBA to mean sole proprietorship just they are actually two different things. Nosotros will use both terms in this guide.

Steps to Changing Your DBA to an LLC:

1. Decide If Y'all Can Use Your DBA Name

States require LLCs to have a name that no other registered business uses. You volition need to search for your new LLC name to brand certain it is unique.

Bold you have a doing business organization equally (DBA) name for your sole proprietorship, your existing business name must meet all of your country's requirements for an LLC. You also need to catechumen or cancel your DBA registration before filing the Articles of Organization for your new LLC.

Yous can search business names and learn more about your state'south guidelines on our Course an LLC guides.

2. Choose a Registered Agent

A registered agent is an private or business organization entity responsible for receiving of import legal documents on behalf of your business. A fellow member of your LLC may act equally a registered amanuensis or you can hire a professional service to fill this role.

While hiring a registered amanuensis service incurs an boosted expense, information technology offers several advantages from increased privacy and convenience to peace of mind.

3. Annals Your New LLC With the Land

While the LLC registration process varies from state to land, typically you must consummate and file the Articles of Organization (or a similarly named certificate) and pay a filing fee. Depending on the state, you can complete this process online or by mail.

You can employ our Form an LLC guides to access the Articles of Arrangement for your state.

4. Obtain an EIN

The U.S. government uses an employer identification number (EIN) to identify your business. You demand information technology to file taxes, open a bank business relationship, and hire employees. You tin can obtain an EIN from the Internal Revenue Service for complimentary.

5. Open a New Banking concern Account

To ensure yous savour the liability protection provided by an LLC, yous need to open an entirely new bank account for your new business. Yous could face financial take chances if you continue using an account you previously opened for your DBA. You'll also want to ensure you brand the necessary changes to whatever vendor accounts, concern credit cards, etc. Find the depository financial institution that suits all your business organisation banking needs with our Best Banks for Small Business review.

vi. Deliquesce Your DBA

You must also properly deliquesce your DBA (sole proprietorship) with the state or local authorities with which yous originally registered. This process varies past location then check in with your business registration potency.

7. Brand Other Final Changes

Once yous complete the transition to an LLC, exist sure to update your company website, business listings, letterhead, business cards, social media channels, and any other place that may incorporate outdated data near your business.

Benefits of Irresolute a DBA to an LLC

There are 4 main benefits of changing a DBA (sole proprietorship) to an LLC:

Liability Protection
Privacy
Credibility
Branding

Limited Liability

The primary do good of changing from a DBA (sole proprietorship) to an LLC is the liability protection LLCs offer. As a DBA (sole proprietorship), your personal finances (e.thou., bank accounts, automobiles, real manor) could be at risk if your business incurs debt or must pay damages stemming from a lawsuit — even if you have separate personal and business accounts. An LLC legally separates the business from the owner and protects personal assets.

Privacy

LLCs also provide more privacy than a DBA (sole proprietorship), assuasive owners to more easily keep their identity cloak-and-dagger if they choose to exercise so.

Credibility

Some other benefit of an LLC structure is that it can brand your business concern look more professional and apparent, potentially helping you proceeds clients or drive sales. Additionally, if yous need to raise capital or determine to sell your business organisation, it's much easier to do both equally an LLC than as a DBA (sole proprietorship).

Branding

LLC owners tin employ the LLCs legal name every bit their brand proper noun. A DBA (sole proprietorship) must use a doing business organization as name (DBA) to avert using their own surnames equally their business proper name.