Can You Have Multiple DBA’s on A LLC?
Yes, you can. In fact, creating an extra DBA name is a simple strategy that some companies use to diversify their businesses. Instead of drafting new articles for each venture, multiple DBA filings are submitted and registered with the local government.
How It Works
Your LLC likely has a DBA tax ID already. This is the formal name and number used for tax filings, credit applications, and legal documents. Creating a new DBA does not void your existing identity. This simply registers a new name for the same organization.
Each DBA filing application must be separate. A unique name distinguishes your business from competitors, but the name must also be distinct from your other company names. Once the filing has been completed, you may open accounts, advertise, and interact with customers using your new business name.
Why It’s Advantageous
Your company’s LLC structure is already established. As the parent company, the marketing and legal structures can be adopted with your new venture.
- File a single tax return for all DBAs organized under your LLC
- Use the same financial structure for loans and payments
- Take advantage of existing marketing and branding
- Work with the same vendors and clients in a new way
Using an additional DBA speeds up your entry into new markets with the need to apply for LLC status again. A firm that wants to add similar products or services without risking the original brand image might use this method.
Things to Consider
Just as the DBA helps you to diversify, it also consolidates some troublesome issues. If you your new venture loses money, your other structures may suffer. Fines and lawsuits that damage your company financially affect all business entities.
Get Started With a New DBA
GovDocFiling can help you wade through complicated issues with your DBA filings. Our online DBA application simplifies the process for you. Fill out the form and diversify your company today.