Texas Business Structure: DBA vs LLC - Which is Best for You?

A DBA (Doing Business As) and LLC (Limited Liability Company) are two common business structures in Texas. While both offer limited liability protection, there are key differences to consider when deciding which one is best for your business. In this article, we'll explore the pros and cons of each, helping you make an informed decision.

A DBA is a business name that is registered with the state, allowing you to operate under a name other than your personal name. It's a relatively inexpensive and easy process, but it doesn't provide the same level of liability protection as an LLC. With a DBA, your personal assets are still at risk if your business is sued.

An LLC, on the other hand, is a separate legal entity that offers limited liability protection to its owners, known as members. This means that if your LLC is sued, your personal assets are protected from being seized. LLCs also offer flexibility in terms of ownership and management, as well as tax benefits.

So, which is best for your business? If you're looking for a simple and inexpensive way to operate under a business name, a DBA might be a good choice. However, if you're looking for more comprehensive liability protection and flexibility, an LLC is likely the better option.

In this article, we'll dive deeper into the differences between DBAs and LLCs in Texas, including the pros and cons of each. We'll also provide guidance on how to choose the right business structure for your needs.