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Forming an LLC and thinking of creating a DBA under it...

Asked by: J. Maurice  — 11 December, 2012

My wife and I and one of her girlfriends are going to start a case management agency and the route I have been introducing them to is to form an LLC. We are also wanting to open up other centers in other cities as well, and were thinking of establishing DBA’s because some services would be different, but are cautions about the loss of liability protection in doing a DBA. I hope that I am asking this correctly but are DBA not protected at all if they are entities of an LLC?

Answered by: admin  — 11 December, 2012

J. Maurice,

DBA registered for a sole proprietorship or general partnership does not provide any protection for the owner(s). However, when a DBA is registered for an organized/incorporated company, for example, an LLC, the DBA (‘Doing Business As’) is serving as an alias the LLC may operate under. This includes the use of the parent company’s EIN, as well as state sales tax permit and other business licenses.

It would be no problem to register multiple DBA’s under one company, with different addresses around the state of the company registration. To be able to file a DBA in another state to be owned by the parent company, you would need to have your business filed as a foreign entity in the new state first, respectively, before you could register DBA’s in that state.

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