Travis: What's the difference in legality for an LLC versus a DBA?
Jake: There's a couple of thigns that people have to consider when they form an LLC versus a DBA. With a DBA, and DBA stands for Doing Business As, another name for it is Fictitious Business Name, or Trade Name. Really, there is no personal liability protection when you form a DBA.
With an LLC, you have the personal liability protection. Additionally, anyone can use the name that your DBA has. In many states, you can file a DBA under pretty much any name. When you have an LLC, you've got name exclusivity in the state. Meaning, no one else can have a name that's like yours. Now, the rules differ state by state, but with a DBA, you could file a DBA in Colorado, and I could file that same DBA in Colorado.
Travis: The same DBA.
Jake: The same DBA.
Travis: So you have no capability to brand your business, because there could be three other people with the same business name in Colorado?
Jake: Now, one way to get around that would be to apply for a trademark. Now, some people don't want to take that extra step and apply for that trademark. So, it's a very likely process.
Travis: OK, that makes sense. Now, if I have an LLC with a certain name, does that prevent somebody else from forming a DBA with the same name?
Jake: In almost all the states, it can prevent a person from filing a DBa with the same name.
Travis: in the states that it doesn't, would I have any legal recourse for somebody who is using my LLC name? Or, would I need a trademark for that?
Jake: You would need to trademark that name. That would probably be the best course of action.