If you’re currently operating under a “Doing Business As” (DBA) and wondering whether you can transition your business into a Limited Liability Company (LLC), the short answer is yes—you absolutely can. In fact, many entrepreneurs begin with a DBA and later form an LLC as their business grows. This transition is common and can be beneficial in multiple ways. But before making the switch, it’s important to understand what both structures are, how they differ, and what steps are needed to convert your DBA into an LLC.
In this blog, we’ll walk through the differences between a DBA and an LLC, the reasons why you might want to make the switch, and a complete step-by-step guide to turn your DBA into an LLC.
What Is a DBA?
A DBA, short for “Doing Business As,” is a registered name that a person or business uses to operate under a name other than their legal name. For sole proprietors or partnerships, a DBA allows you to run your business under a brand name without forming a separate legal entity.
For example, if John Smith operates a landscaping business and wants to call it “GreenScape Landscaping,” he can file for a DBA to use that business name legally, even though his business is still legally John Smith.
Key Characteristics of a DBA:
- No legal protection: A DBA does not offer personal liability protection.
- Not a separate entity: The business remains tied to the owner’s personal identity.
- Easier to register: Filing a DBA is relatively simple and inexpensive.
- Used for branding: It allows businesses to use a different name for marketing or operations.
What Is an LLC?
An LLC, or Limited Liability Company, is a legal business structure that combines the flexibility of a sole proprietorship or partnership with the liability protection of a corporation. When you form an LLC, the business becomes its own legal entity, separate from the owners (called members).
Key Characteristics of an LLC:
- Liability protection: Owners are generally not personally liable for business debts or lawsuits.
- Separate legal entity: The LLC is its own legal structure.
- Flexible taxation: LLCs can be taxed as a sole proprietorship, partnership, or corporation.
- Formal requirements: Requires filing formation documents and meeting annual compliance requirements.
Why Convert a DBA Into an LLC?
As your business grows, the informal structure of a DBA may no longer meet your needs. Here are the top reasons entrepreneurs consider converting their DBA into an LLC:
1. Personal Liability Protection
With a DBA, there is no legal separation between you and your business. If someone sues your business or your business has debts, your personal assets could be at risk. An LLC helps shield your personal finances.
2. Credibility and Professionalism
Forming an LLC adds legitimacy to your business. Clients, customers, and investors often view LLCs as more credible than sole proprietorships using a DBA.
3. Access to Funding
LLCs can open business credit lines, attract investors, and apply for loans more easily than informal business structures.
4. Tax Benefits
An LLC offers more flexibility when it comes to taxation. You can choose how your LLC is taxed—whether as a disregarded entity, partnership, or even as an S-Corp.
5. Easier Expansion
With an LLC, you can add members, expand operations, and even bring in partners without having to reorganize the entire structure.
Can I Keep My DBA Name When I Form an LLC?
Yes, you can usually keep your existing DBA name when forming your LLC, but it depends on availability. When filing to form an LLC, you’ll need to ensure that your DBA name is not already taken by another LLC or corporation in your state.
If your DBA name is available, you can register it as your LLC name or keep it as a separate brand under the LLC. In some cases, business owners will form an LLC under one name and then refile their original DBA under the new LLC as the owner.
Step-by-Step Guide: How to Turn a DBA Into an LLC
Step 1: Choose a Name for Your LLC
Start by selecting a name that’s available in your state. This could be your existing DBA name if it’s not already in use by another entity. Check your state’s business name database to ensure it’s unique and compliant with naming rules.
Step 2: Designate a Registered Agent
An LLC must appoint a registered agent who will receive official documents on behalf of the business. This can be you, someone in your company, or a registered agent service.
Step 3: File Articles of Organization
This is the official document you submit to your Secretary of State (or equivalent agency) to form your LLC. It usually includes:
- LLC name
- Business address
- Registered agent information
- Purpose of business
- Duration (optional)
Step 4: Create an Operating Agreement
Although not required in all states, it’s highly recommended to create an operating agreement. This outlines the ownership, management, and rules for running the LLC.
Step 5: Obtain an EIN
An Employer Identification Number (EIN) is needed to open a business bank account and file taxes. Even if you already had an EIN for your DBA, you’ll need a new one for the LLC since it’s a new legal entity.
Step 6: Register for State and Local Taxes
Depending on your business activities and location, you may need to register for sales tax, use tax, or other state/local taxes.
Step 7: Apply for Business Licenses and Permits
If your DBA required licenses or permits, check if you need to reapply or transfer them to the new LLC.
Step 8: Notify Clients, Vendors, and Financial Institutions
Inform all stakeholders that your business has transitioned from a DBA to an LLC. Update your contracts, bank accounts, and payment systems.
Step 9: Refile Your DBA (Optional)
If you want to continue using your DBA name under your LLC, you may need to refile the DBA under the LLC entity. This helps you keep using the familiar business name while enjoying LLC benefits.
Costs Involved in the Transition
Turning a DBA into an LLC comes with some fees, which can vary by state. Common costs include:
- Filing fee for Articles of Organization: Ranges from $50 to $500
- Registered agent service (if applicable): Around $100–$300 annually
- Business licenses and permits: Depends on industry and location
- DBA re-filing (if needed): Varies by state
While these costs may seem like an extra expense, they are often worth it for the legal protection and flexibility the LLC structure offers.
Things to Consider Before Making the Switch
Before you jump into converting your DBA into an LLC, take time to assess the following:
1. Legal and Tax Implications
Consult with a business attorney or accountant to understand how the change affects your tax situation and legal responsibilities.
2. Branding Impact
If your brand is tied closely to your DBA name, make sure that the transition won’t confuse existing customers. Proper communication and marketing will be crucial.
3. Record Keeping
Keep meticulous records of the transition. Maintain separate books for the DBA and the new LLC. Once the LLC is fully operational, you can dissolve or retire the DBA.
Common Mistakes to Avoid
❌ Operating the LLC Like a Sole Proprietorship
Once you form an LLC, treat it as a separate entity. Use separate bank accounts, sign contracts in the name of the LLC, and don’t mix personal and business funds.
❌ Forgetting to Notify Agencies
Make sure you update your business information with tax agencies, banks, vendors, and customers.
❌ Skipping the Operating Agreement
Even if it’s not required, this document helps avoid disputes and clarifies roles within the LLC.
Final Thoughts: Is It Worth Converting a DBA Into an LLC?
If your business is growing, you’re taking on more clients, or you want to protect your personal assets, then yes—converting your DBA into an LLC is a smart move. It shows that you’re serious about your business, offers legal protection, and sets you up for long-term success.
The process isn’t overly complicated, and with the right planning, you can make the transition smoothly. Many business owners have made this switch and never looked back. Whether you’re just starting out or ready to take your operations to the next level, forming an LLC is a strategic upgrade from a simple DBA.
In conclusion, turning your DBA into an LLC is more than just a legal step—it’s a business milestone. It represents growth, professionalism, and preparedness. So if you’ve been asking, “Can I turn my DBA into an LLC?”—the answer is yes, and now you know exactly how.