DBA and LLC with different owners

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DBA and LLC with different owners

Can I register DBA under my name but have LLC to be under someone else’s
name?

Asked on May 23, 2018 under Business Law, Texas

Answers:

B.H.F., Member, Texas State Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

Your question has very few details, but I'm going to try to answer with filled in details.
If you own a business, you can operate it as a sole proprietorship using a DBA, or as a corporation with the LLC model.  You have to pick which one you want to use for registration and tax purposes if they are the same entity or business.
If you own two businesses that do similar things, but can be operated independently, then you can register one as a DBA and another as an LLC. 
Generally, LLC's must be registered by owners or managing partners.  Sometimes the owners will agree to create a "sub-business" under the LLC.  In those instances, the LLC can also file a DBA to operate as a different entity. 
If you have a choice, it generally makes sense to form an LLC because it limits your personal liability.
I would also suggest that before you register or do anything, that you also visit with an accountant and your local branch for the Small Business Administration.  As part of your decision making, you need to see what the tax consequences are for each, and what funding/financing options may or may not be available for each entity. (especially since capitalization is a major hurdle for most start ups).
 


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