If you started your business using a DBA (“Doing Business As”), you might be wondering whether it’s possible — or even advisable — to convert it into an LLC. The short answer is yes, but the process involves more than just changing the name. Transitioning from a DBA to an LLC offers stronger legal protections, tax benefits, and a more professional business image.
In this 2025 guide, we’ll walk you through how to convert your DBA into an LLC, the benefits and legal implications, and the step-by-step process to make it happen.
What Is a DBA?
A DBA (also known as a trade name, fictitious name, or assumed name) allows sole proprietors and general partnerships to operate under a name that is different from their personal legal name or business entity name.
For example:
- If Jane Smith runs a freelance graphic design business under the name “Designs by Jane,” that’s a DBA.
However, a DBA is not a legal entity. It doesn’t offer liability protection, nor does it separate your business assets from your personal assets.
What Is an LLC?
An LLC (Limited Liability Company) is a formal business entity recognized by the state. It offers liability protection, meaning your personal assets are typically shielded from business debts or lawsuits. LLCs are also flexible in how they’re taxed and managed.
Key benefits of an LLC:
- Personal liability protection
- Potential tax advantages
- More credibility with clients and vendors
- Ability to open a business bank account
Can You Turn a DBA Into an LLC?
Technically, you don’t “convert” a DBA into an LLC — you form a new legal entity (the LLC) and then either:
- Cease using the DBA, or
- Transfer the DBA to the new LLC (if allowed in your state)
Think of the DBA as a nickname for your business. When you form an LLC, you’re giving your business a legal identity. You can either retire the nickname or assign it to the new legal entity.
Reasons to Convert Your DBA Into an LLC
1. Legal Protection: As a sole proprietor with a DBA, you’re personally liable for debts or lawsuits. With an LLC, your personal assets (house, car, savings) are protected.
2. Tax Flexibility: LLCs allow you to choose how you’re taxed — as a sole proprietor, partnership, or even as an S Corporation (which can lower self-employment taxes).
3. Professional Image: Clients often trust LLCs more than individuals using DBAs. An LLC shows commitment and structure.
4. Easier Business Banking: Banks prefer to open business accounts for LLCs over DBAs because LLCs have formal structures and documents.
5. Growth Potential: If you plan to bring on partners or investors, an LLC is essential.
Step-by-Step Guide to Turning a DBA Into an LLC
Here’s how you can make the transition:
Step 1: Choose a Name for Your LLC
Your new LLC name should:
- Be unique in your state
- Include “LLC” or “Limited Liability Company”
- Not contain restricted words (like “bank” or “insurance” without approval)
Tip: You can use the same name as your DBA if it’s available.
Step 2: File Articles of Organization
Each state requires you to file a formation document — usually called the Articles of Organization — with your Secretary of State. You’ll need to pay a filing fee (typically $50–$300).
Step 3: Create an Operating Agreement
An Operating Agreement outlines:
- Who owns the LLC
- How profits are shared
- How decisions are made
Though not always required, it’s essential for internal clarity and legal protection.
Step 4: Get an EIN (Employer Identification Number)
Apply for an EIN from the IRS. It’s free and allows you to:
- Pay employees
- File taxes
- Open a business bank account
Note: Even if you had an EIN under your DBA, you must apply for a new one for your LLC.
Step 5: Open a Business Bank Account
Open a new account in the name of your LLC. This helps maintain the legal separation between your business and personal finances.
Step 6: Cancel or Transfer Your DBA
- If you no longer need the DBA, file a cancellation with the appropriate agency.
- If you want to keep using the DBA under your LLC, check if your state allows a DBA for an LLC and then file for it under your new entity.
Step 7: Update Contracts and Licenses
- Notify clients, vendors, and partners
- Update your business licenses
- Change the name on leases, contracts, websites, social media, etc.
Tax Considerations When Switching to an LLC
When moving from a DBA to an LLC:
- Your tax ID number (EIN) will change
- Your filing status may change depending on whether you’re a single-member or multi-member LLC
- You may be eligible for pass-through taxation or S-corp election
Consider speaking with a tax advisor to ensure a smooth transition.
Can You Keep the Same Name as Your DBA?
Yes — if the name is available in your state. If another business has registered that name as an LLC or corporation, you’ll need to choose a variation or a new name.
No, you cannot directly “upgrade” a DBA to an LLC. A DBA is not a legal entity—it’s just a nickname for your business. You must form a new LLC through your state and then stop using the DBA or transfer assets to the LLC.
Yes. If you’re moving from a sole proprietorship using a DBA to an LLC, you’ll typically need a new EIN from the IRS since the business structure is changing.
Possibly. If the DBA name is available and not already taken by an existing LLC in your state, you can usually register your new LLC under that same name.
Forming an LLC gives you limited liability protection, access to better funding, enhanced business credibility, and tax flexibility—benefits a DBA alone cannot offer.
Yes, it’s a good idea to cancel your DBA to avoid confusion. If you still want to use the same name, you can file a DBA under your new LLC instead.
Yes, but you must formally transfer all business assets, contracts, licenses, and accounts to the LLC. This might require notifying vendors, banks, and government agencies.
Common Mistakes to Avoid
Not forming the LLC correctly – Failing to file properly can result in your business being invalid.
Mixing personal and business finances – Use separate accounts for legal protection.
Forgetting to cancel or transfer your DBA – Leaving an active DBA under your personal name can cause confusion or liability.
Failing to notify vendors and clients – You may lose payments or credibility if you don’t communicate the change.
Final Thoughts
If you’ve outgrown your DBA or want to give your business more structure, protection, and credibility, forming an LLC is a smart move. While a DBA is easy to set up, it doesn’t provide any legal protection. Converting to an LLC means your business becomes a separate legal entity — a big step forward.
Need Help Starting an LLC?
At FormLLC, we help entrepreneurs just like you upgrade from DBA to LLC seamlessly.
Services We Offer:
- LLC Formation in all 50 U.S. states
- EIN Registration
- Operating Agreements
- BOI Filing (Beneficial Ownership Information)
- Business Bank Account Guidance
- Ongoing Compliance Support
Let’s get started today:
- 🌐 www.formllc.us
- 📧 contact@formllc.us
- 📱 WhatsApp +91 6202619173
Take your business to the next level — the legal and professional way.
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