To DBA or Not to DBA, that is my quandry...

So here is the scenario. I have created an LLC for my design agency. From the research I have done, that is the best thing to do at this time. BUT, I have a second name that I have licensed as a DBA. The more I develop my own marketing and advertising materials, I find myself liking the DBA name more and more.

Now normally I wouldn't care so much, but the UI and IA part of me keeps looking at the usability aspect of such a business structure. I can represent my company under the DBA name, but payments, contracts, etc all have to be under the LLC name. This requires more legalese for people to read through to get the point across that they are actually using only one company, but that company has two names. So while I have already structured myself this way, if I choose to change, now is the time to do it.

So I pose the question, what is the true benefit to having a DBA? If I don't plan on using the LLC company name for anything customer facing, why do it? Are there underlying benefits that I am missing or is there truly no real benefit to having two names if you only use one?

I am up for a good conversation on this, but would really like to see an attorney chime in on this one if possible.

4 Bizniks have posted replies

Posted by Howard Howell, Seattle, Washington | Oct 18, 2007

Scott.. I'm not an attorney, but as a business owner for many years, I have used many DBA's for marketing purposes with one company as a "holding company" of sorts. Each of the individual businesses have been accounted for as departments. When the sales grew to a realistic point, I would, then form new legal entities to "spin off" so the different operations could be eventually sold. Maybe that is a trait of a "serial entrepreneur", but it has always worked good for me....HH

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Posted by Arthur Torelli, Seattle, Washington | Oct 18, 2007

Having multiple names adds versatility. You never know when one might become usefull. If you have them both now then their is no reason to get rid of one. Art T.

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Posted by Justin Baker, Seattle, Washington | Oct 19, 2007

you just need to spring for it and call danny bronski. he's the man! veritrademark.com check it out!
Posted by Danny Bronski, Seattle, Washington | Oct 21, 2007

Your issue is really a trademark issue ("licensing" a trade name does not give you an trademark rights)

Here are a couple of articles that you might find useful:

The difference between a trade name and trademark: http://veritrademark.com/tradenames-versus-trademarks.html

How to think about trademarks for your small business: http://veritrademark.com/sensible-approach-to-trademark-protection.html

Good luck! Danny Bronski, VeriTrademark

Danny Bronski/IP Lawyer