Thread: LLC or DBA?
09-09-2006, 11:45 AM #1Junior Guru Wannabe
- Join Date
- Mar 2006
LLC or DBA?
I am contemplating as which is a better approach on my situation.
I currently have a LLC setup. When I applied for it, it was geared towards computer consulting services.
Now, I want to dive into the hosting business plus domain services.
I am thinking of using my current LLC and just file a "Doing Business As" (DBA) to use an easy to remember name for my hosting/domain business.
However, I am also considering setting up another LLC just for it.
Which do you think is better in terms of managing it, accounting and tax management?
09-09-2006, 06:20 PM #2Web Hosting Master
- Join Date
- Nov 2004
I think it depend on too many parameters. There isn't a single and generic anwer to your question. It depends on your business, your personnal situation... etc May be it is better to ask a lawyer..:. Enterprise SAN Consultant .:.
09-09-2006, 06:33 PM #3
While it would be simple to file a DBA form to allow your existing LLC to do business under another brand, this is certainly something that you want to speak to a lawyer (and possibly an accountant) about.
09-10-2006, 11:01 AM #4New Member
- Join Date
- Sep 2006
DBA under a LLC
The Limited Liability Company has two members, the General Manager & everyone else. Everyone else is a non-active contributor whose limit of liability is the amount of thier investment. The general partner is the operational manager and thereby responsible party for day to day activities.
If your business expands into another area, it isn't neccessary to start a new LLC, unless you wish to segregate the revenue and thus the profits share paid to the investing members. If these are the same people in both activities, why bother?
Under a single LLC, the DBA name is a brand and you should treat it accordingly. Register the Trademark for your brand and copywrite all literature/documentation (including seperate websites). For this you only need an attorney if you are totally afraid of legalities or lazy. Really, good info on how to do this in the USA are available from the .gov sources.
There you have it. The accounting issue is a matter who you do and don't pay a profit share to. The legal issue is a matter of brand identification under the LLC's list of intellectual assets. Be practical.