DBA Registration vs Business Formation

A DBA and a business entity solve different problems, and confusing the two is a common early mistake. Knowing which you need saves both money and legal trouble.

A DBA, or doing business as, is simply a registered name for your business; it does not create a separate legal entity. Formation creates the entity that shields you from liability.

• A DBA registers a name but creates no entity
• Formation creates an LLC or corporation
• DBAs are cheaper and faster to file
• Only formation provides personal liability protection

If you need liability protection or plan to raise money, form an entity. A DBA is a useful add-on for a brand name, but it is never a substitute for actual formation.