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Can I have multiple DBAs under one single LLC?

You sure can! An LLC can hold multiple DBAs under one roof as a way to diversify branding while still operating under the same overarching LLC. Each DBA, or "doing business as," can specialize in their own markets or niches without creating new companies from scratch.

How To Setup Multiple DBAs

Your company's operating agreement will need to list your DBAs and the intent behind them. The process to register your DBA is similar to when you registered your LLC with it's own fun twists and turns.

  • Search for the name you want; check with the state and/or county to make sure it isn't already taken.
  • Depending on where you're located, register your "Doing Business As Name," "Fictitious Business Name," or "Trade Name" with your county clerk or Secretary of State. This can cost anywhere from $10-$100, and might need to be renewed every year or five.
  • Some states, like California and Georgia, require publications in a local newspaper for a few weeks to announce your DBA. Check your local requirements!
  • Use your LLC's EIN and your DBA certificates to open a separate bank account for each DBA. It's not legally required, but makes your bookkeeping so much easier to untangle later, especially if you ever want to sell one venture or spin it out into its own LLC.

The Benefits of a DBA

Branching out into new markets is often reason enough, but there plenty of other reasons why an LLC owner might want multiple DBAs.

Cost Saving Opportunities

Holding multiple DBAs under one LLC means you don't need to set up separate LLCs. That means you're saving on multiple state filing fees and annual report fees. Other administrative costs drop, too. Since all income and expenses are listed on one return, your taxes get easier too, means saving on your accounting costs. And your one LLC only needs one registered agent.

Simpler Operations

Managing multiple DBAs is a real game-changer for simplifying day-to-day operations. Since all your brands share the same foundation, you just need one bookkeeping software subscription, one payroll system, and one EIN.

While the advice is typically to create separate bank accounts for each DBA seems like this makes things more complex, the complexity only stems from the initial setup. By separating out each bank account you're making it clear which operation is earning what which can only help you come tax season.

Organizing Your Brand Identities

Keeping your DBAs separate further allows for easier, cleaner brand identification.

This folds well into brand representation via domains and website presentation as well. Surely a client looking for information about party rentals isn't going to be too stoked about landing on a page about landscaping. Each brand is then going to have the chance to look and sound distinct from one another.

By separating out each DBA like this you're taking them seriously, injecting your time and effort into each venture that supports it as its own business. This also makes it leagues easier in the event you need to pass the baton on after selling your LLC and linked DBAs.

The "L" Word (We're Talking About Liability)

Each of your DBAs is a piece of the same holding LLC pie. Legally, they're all the same entity. Sally Johnson, LLC dba Johnson Car Detailing and Sally Johnson, LLC dba Sally's Car Wrap Station are not separate entities—they only unique corporate person here is Sally Johnson, LLC.

This is important. It means that liability becomes shared between each DBA and the LLC itself. If one DBA is sued, that the assets of the others are at risk, along with any other assets being held by the LLC. So operating with multiple DBAs can work well if your businesses have similar liability potential. On the other hand, this can be disastrous if you're working in higher-risk ventures or with higher-value assets. Separating out a DBA with a higher risk as its own LLC protects the holding LLC and its DBAs. It's something to consider when forming your business empire.

Source: r/NWRegisteredAgent · by /u/NWRegisteredAgent

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