DBA vs LLC vs Trademark

New business owners often use these three terms interchangeably. They solve three different problems: a DBA lets you operate under a name, an LLC separates your personal and business liability, and a trademark protects a brand from being copied. Many businesses eventually use more than one.

At a glance

DBA (doing business as)

A DBA, also called a fictitious name, assumed name, or trade name, tells the public who is really behind a business name that is not your legal name. A sole proprietor named Jane Smith operating as Bright Path Consulting registers that DBA, and an LLC that wants to trade under a different brand name often does too. Registration is typically with the state or county, and banks usually require the certificate to open an account in the trade name. It adds no liability protection and does not stop anyone else from using a similar name.

LLC

An LLC is a separate legal entity. Its name is checked for availability against other entities in the same state, which gives you a form of name protection there, but only against other registered entities and only within the state. The main reason to form one is liability: the LLC's debts and lawsuits generally stay with the company instead of your personal assets. Read the LLC hub for the state-by-state guides.

Trademark

A trademark protects the source identity of your goods or services: a brand name, logo, or slogan used in commerce. Rights can arise from use, but registering with the US Patent and Trademark Office gives nationwide priority, a public record, and stronger enforcement tools. Registration fees are charged per class of goods or services. A state LLC name does not give you trademark rights, so a distinctive brand deserves its own search and registration.

Which do you need?

• Starting small under your own name with low risk: a DBA if you use a business name.
• Any real liability exposure or partners: an LLC, plus a DBA if your brand name differs from the LLC's name.
• A brand you intend to build or sell: a trademark search and registration, in addition to the entity.

Before choosing a brand name, search the USPTO database, state business records, domain names, and social handles. Attorneys can help with clearance searches, which matter most for brands you plan to grow.

A name-clearance checklist

1. Search the state business entity database for names that are the same or confusingly similar.
2. Search the USPTO trademark database for registered and pending marks in your field.
3. Check domain names and the main social media handles.
4. Do a plain web search for the name plus your industry, to spot unregistered users.
5. If the brand matters long-term, ask a trademark attorney for a clearance opinion before you invest in signage and marketing.

Example

A baker forms "Rise Bakery LLC" and registers the business name with her state. Months later, another baker in a different state has been selling under the name "Rise" for years and holds a federal trademark. The state LLC registration did nothing to stop that. A trademark search before choosing the name would have caught the conflict.