Should You Create a Second LLC or Use a DBA?
Вставка
- Опубліковано 27 тра 2024
- In this video, you get answers to these questions:
0:00 - Introduction
1:41 - What is a DBA?
2:25 - What are the benefits of a second LLC?
3:31 - What are the disadvantages of a second LLC?
4:10 - What are the alternatives to creating a second LLC?
6:13 - When can one LLC be liable for the other?
7:17 - How can I learn more about this topic?
7:34 - Can I use the same EIN for both LLCs?
8:36 - Overview
9:24 - What are the next steps I should take with my attorney?
11:01 - Outro
QUESTIONS? Do you have questions about this topic or anything else? Ask in the comments below.
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This is educational information to help you spot issues to discuss with a lawyer in your jurisdiction. See our Terms of Use: aaronhall.com/tou/.
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Hard to believe this guys an attorney, he explains things clearly, without ego and understands why people may want to do stuff even if it’s not the best way. Great Listen!
Ryan, thanks for your kind note. Positive comments like these are very encouraging.
Best description I've found - thank you for being clear and covering all the details. For some reason this stuff is hard to wrap my head around!
Hi Christin. Thanks for your encouragement. Your kind note helps motivate me to keep producing videos.
This was awesome and a clear explanation
Thank you for succinctly clarifying this in laymen's terms. I'm in this exact situation, and I feel that after watching this, I'm going to just simply set up another LLC.
That is great to hear. Best wishes, MadMarche.
Incredibly helpful! Thank you! Especially the stuff about insurance, and successor liability :)
Thank you for your kind feedback.
Awesome video! Generic and educational way was amazing!
Exactly the info I was looking for. Thank you!
Eric, that is great to hear. Thanks for your kind note.
Very helpful. Thank you for being so organized with the time bullet points. However, I listened to everything and I found all that you said very relevant and valuable. Thanks again!
Thank you, Brandon.
Very helpful and easy to digest. Thanks
Glad it was helpful! Thanks for your kind note.
Very helpful info. Best explanation I’ve found thus far! Thank you!
Jalyn, thank you for your encouraging note.
Very helpful! Thanks so much!
Glad it was helpful! Thanks for your kind note.
Thanks for your reply and all of the great content provided!!
Thanks, Natasha. Glad it has been helpful!
very helpful.... crystal clear information. Thank you
You're very welcome!
This was super helpful thank you! subscibed!
Glad it was helpful! Thanks for your kind note.
Great helpful video, very informative!
Thanks, Uber. Much appreciated.
Great video thanks!
Glad it was helpful! Thanks for your kind note.
AWESOME INFORMATION , WELL DONE VIDEO
I appreciate your thoughtful words. Thank you!
Thank you for this very informative video!
Glad it was helpful.
Great Video! Very informative.💯
That is great to hear. Thanks for your kind note.
Thank you sir, you're awesome. Many many blessings to you
Thanks for your encouraging note.
This is so helpful I’ve been trying to figure out what to do and you made it clear
Thank you for the encouraging words.
I highly appreciated the explanation LLC vs DBA just today I registered an LLC as a secondary I was
Thank you so much, for the information.
Glad it was helpful! Thanks for your kind note.
Great video! I learned a lot! 🙌🏾
Thanks, Nebu. Glad it was helpful!
This was the best broken down explanation i have ever watched!!
I appreciate your feedback. It helps me improve for future videos. Best wishes to you, Edward.
Thank you so much. This was very helpful.
Thank you for your kind words of encouragement, Phillip.
Just watched this for a second time. Immensely helpful. Thanks!!
Thank you for your kind words.
This is the exact question that I was asking myself. ..thank you very much
Glad it was helpful! Thank you for sharing your thoughts.
Good day, Aaron Hall, Attorney. it is surprisingly surprising video. thank. :)
Thanks for your kind note.
Thanks for the information. It is very helpful.
Glad it was helpful! Thanks for your kind note.
Thank you! Too many businesses need easily digestible legal tips and advice. Looking forward to seeing more content like this from your channel!
Thanks for your encouraging note. Best wishes in your business!
This is great information.. thank you
That is great to hear. Thanks for your kind note.
very helpful and to the point !
I appreciate your thoughtful words. Thank you!
Great explanation. Thank you.
Thanks, @justacontrarian. Much appreciated.
@@Hall You're welcome. This was very helpful.
Excellent video
Thank you for your kind feedback.
Thanks for this it answered my general questions to plan. I of course will consult an attorney when the time comes
Glad it was helpful! Thanks for your kind note.
Definitely helpful!
Thank you, Massiel.
solid gold material. I was looking from this answer finally i got it. Thanks
Glad it was helpful! Thanks for your kind note.
Hi I highly appreciate the explanation LLC VS DBA just today before watching this video I opened a second LLC for another venture. After listening to you I am more cleared about my decision. And of course I subscribed and invite others to support this helpful channel
Thank you. Great information.
Thanks for your kind note.
Fantastic job Aaron !
Thanks, Devon. I appreciate your kind words.
Thanks for posting such an interesting and useful video. My first busines was an Ltd. in Canada and my second was a DBA. I had separate insurance for both companies. Looking forward to learning more from your channel.
Is a DBA a Separate Company? 
Wow. That answered my question... Thank you so much! Subscribed! :D
That’s great to hear. Thanks for the kind note.
thank you sir! The education is totally awesome!
Steven, kind words like yours motivate me to make more videos. Thank you.
I so appreciate how clearly you explain things, so easy to understand 🥳 So if you keep your multiple businesses under one LLC to start off all those use the same EIN is what I'm guessing..due to them being under that LLC umbrella so to speak?
This is an amazing breakdown!! I have to save this video because I am thinking about having a second business that are unrelated to each other. Thank you!
Thanks for the encouraging words. I wish you the best in your businesses.
U dropped one in particular JEWEL tht was so golden !! I hv NEVEREDDDD heard of a series of LLC's..wow THANK U.. AND DAMN CALI. DONT ALLOW IT..BUT MY HOME STATE DO !! TENNESSEE DO ALLOW IT ! SHIT !!
Exactly what I needed. Earned my sub
That is great to hear. Thanks for your kind note.
Thank you! Your video broke it down to where I can understand. I am starting a new journey with becoming a small business owner, and I am feeling a bit overwhelmed at the moment.
Hi Jeanice. Thank you for your encouragement. Becoming a business owner can feel overwhelming at first, but I believe it gives much more power and control over life and income. Best wishes in your new endeavors!
Insurance is going to be great for my businesses. Thanks for the info!
You don’t need multiple business entities to avoid risk. Do this instead!
Really great information and explanation. I will be setting up another LLC now. 👍
Thanks for your encouraging note. Best wishes in your business!
Thank You Sir..
Thanks for this video!
My pleasure!
So helpful thank you
Glad it was helpful! Thanks for your kind note.
This is the most helpful video I’ve seen on having two LLC businesses and if I need two EINs. Very confusing for someone who hasn’t done it before. Thanks again!
Glad it was helpful! Thanks for your kind note.
Thanks man! You really helped me understand how I want to manage my ideas. Since my business ideas spread across vastly different genres of business, I'll configure multiple legal entities when the time comes. One duck at a time, for now!
Thanks for your encouraging note. Best wishes in your business!
Thank you, this video was very informative and helpful. I am currently debating whether I should open a new LLC or DBA and this video answered all my questions and concerns.
Thanks for your encouraging note. Best wishes in your business!
Great channel keep up the great work
Andrew, thanks for your kind words. Feel free to let me know if there any questions or topics that would be helpful to cover.
Thank you so much. I almost hired someone that information! You are the best!
Glad it was helpful! Thanks for your kind note.
Thank you for making this video! I feel much more informed now. Do you have any videos about how you handle your UA-cam as a business? Is it it another LLC, DBA, or just an aspect of marketing for your attorney brand?
Great question! As a general rule, UA-cam can be treated like all other other advertising channels, all part of the business being marketed. You don’t need a separate entity for UA-cam unless you are building a separate business on UA-cam (e.g. influencer business).
From my situation, I don’t see my channel as advertising; I see it as educational-a service to the community. I believe that as we obtain knowledge, we have a duty to share that knowledge to empower others. I believe attorneys have a duty to use their expertise to help others-through teaching, pro bono services, community volunteering, or other means.
GREAT VIDEO BRO..BRAVO
Thank you for your kind feedback.
you are extremely knowledgeable. a lot of tax ppl are telling us to not get multiple llc but they don't know the alternatives except the traditional alt. DBA... I am now reading, researching serial llc's now. I believe this is the best way place to start collecting data on multiple entity structures for start up companies that need to put other unrelated but necessary llc's under a holding company...thanks for guiding in a great direction...I have a place to investigate and learn more b4 making a decision
Serial LLC ?
Thanks for your kind words, TheTeaM.BayArea. If you have quick questions, feel free to post them as a comment and I will do my best to create an educational video on them.
U really went in, in this video...thanks.
That is great to hear. Thanks for your kind note.
Thank you so much
No problem. I am glad you found this video beneficial.
Thank you for your content. This was a great explanation!! && helped me with decision making. New Subbie
That is great to hear. Thank you for your kind feedback.
EXCELLENT!
Thank you.
Thank you and I subscribed
That is great to hear. Thank you.
Thank you for keeping it short
Haha. Thanks, Kristina. That reminds me of the old quote, “I would have written a shorter letter, but I did not have the time.” It's tough being concise.
Thank you very much for the different breakdowns and scenarios. I am a serial entrepreneur and find that I am working on a 3 business. I am currently a virtual tax preparer, I also have a mobile Notary public business. I have a large family so since 1997 I have been doing party planning for my family and have always found it to be a sweet spot for me because its very fun, and who doesn't love a celebration. These business all currently work under my power but my main Llc is seasonal and the mobile business is on demand and per diem. This new venture will be a separate space with the option to customize a party package that is dropped off and picked up after. I plan to have insurance cover the rental and party planning. But since the nature of the 3rd business is bouncy house functions I may need an LLC to handle the full liability of it. My only question is if I continue with just a DBA on the rentals I am able to get an EIN for the rental business? TIA for your time and competence in this realm.
Thanks for taking the time to comment. Here is a potentially helpful resource: aaronhall.com/maximize-potential-and-protection-ein-and-llc-for-businesses/
Thank you!
You are welcome, Elizabeth. Thanks for your note.
Great video, useful information. I did open LLC and added DBA , EiN required for each ?
One EIN. Because it’s only one business entity.
I originally launched my LLC for my at home business doing small personalization items for events- cups, favor tags, t shirts, cake toppers etc. I just recently launched a now very successful photobooth business and have been using the same LLC I had originally created. I am also now doing events on a larger scale and decorating for them. Should I open a new LLC for my photobooth business and use my original LLC for the event decorating? I just find it so easy to have just one business account and one accounting app
This was extremely helpful and quite honestly one of the best breakdowns. Thanks!
I appreciate your thoughtful words. Thank you!
Wonderful, complete and clear information, thank you Aaron! I have a single member LLC that does website design. The assets of the company are 2 computers. I just opened a DBA under the LLC to conduct surfboard rentals during the summer. The rentals take place through an online platform (on the web), but other than that the two activities are not related. I am working on getting liability insurance in place for the DBA rental activity, which poses the greater liability risk, and has more assets. As you stated, I am planning to spin the DBA into a separate LLC once the business proves itself. No insurance company wants to cover my web business and rental business under one plan, as the business activities are too disparate. Web design vs surfboard rentals. What is your general take on my approach? I have someone who says they will insure the DBA activity alone, but not the web design business (under the same plan). Thank you in advance!
Can You Get Business Insurance If Your Company Has Very Different Products or Services?
The best info! I
That is great to hear. Thank you!
Great content, I live in Minnesota and it appears that I cannot set up a series LLC in this state but rather set up one in a different state in order to operate as a series LLC in Minnesota. Go figure!
That is true: aaronhall.com/practice-areas/business/series-llc/
Just know that getting banking with a series can be problematic. Regional banks work better than national or mega-regionals. They are more flexible in their acceptance of a series that doesn't have a separate operating agreement.
Great stuff! Very good video. What would you say to do if you want to change the name of your business that’s going to be doing the same exact thing…you just want a different name. Just start a new one or do a dba? Which would be easier
The options would include a full name change or DBA. A DBA offers the benefit of being able to use both names, so you don’t run into difficulties during the transition period because you could continue to use the old name where needed (e.g. old contracts and accounts).
Best video 🔥
Thanks, Saul. I appreciate you taking the time to send this encouragement.
Thank you so much this was great information!
If I get a DBA to an LLC can I get a EIN for the DBA?
They both share the same EIN
THANK YOU. I’ve been trying to get this *SIMPLY* explained to me as this business is steady but I have another (unrelated) blooming; this helped me clarify what I truly needed and feel more secure in choosing to just do two LLCs
Thanks for the encouraging words. I wish you the best in your businesses.
Aaron - thanks for this video, it was very informative! I have a question though: if I set up a DBA instead of forming a separate LLC, does the DBA have to have its own EIN?
Does the DBA for an LLC need its own EIN?
Great video, Thank you! How do I go about structuring my bank accounts if I have one llc and two DBA businesses under the llc? TY
Great question. Since these are all the same business, they can share the same bank account.
For example, if your friends call you Pat and Patrik, you don’t need to have separate bank accounts just because you go by a couple different names. Likewise, your business can have a single account at the bank for multiple DBAs. If you want, you could have a separate bank account for each DBA, if that was somehow helpful for your business.
Thanks for the info. Few questions
1. If you create a dba , can you still use both the dba name and the original LLC name? Or do you have to use the dba name moving forward?
2. When opening a bank account, do you use the same EIN for the dba and the LLC? Would the bank let you have multiple banks for separate dbas using the same EIN? I know with your SSN, you can have multiple bank accounts.
3. Last question I promise. Do you have to announce to the public that you're using a dba and disclose the original LLC?
Thank you.
1. You can use both names.
2. A DBA and LLC share the same EIN. You can have multiple bank accounts under the same EIN.
3. State law requires a public notice of some sort.
@@Hall thank you.
Thank you Mr. Hall for clarifying these entities. I have a question: I live in California but my real estate investments will be made in Texas what do you recommend me to do? I want to avoid if possible the California registration fees and the annual $800 CA renewal fee since I won't do any business here. I may also do business in some other states. THANK YOU FOR YOUR HELP
Thanks for your kind note. Glad it was helpful! Here is a potentially helpful resource: aaronhall.com/one-time-or-ongoing-registering-your-online-llc-in-each-state/
Thank you so much for great information I have c corporation and EIN number for my address and I just leased restaurant should I change the address to the restaurant address or should I keep the c corporation and EIN for my home address?
Either address works as long as you will get mail sent to that address.
Thanks for the info! Question, can I use my LLC credit card for my DBA in an unrelated field?
Thanks, @deedee49254. Here is a potentially helpful resource to answer your question: aaronhall.com/can-an-llc-and-dba-have-separate-bank-accounts
I found the information in this video helpful, detailed, and to the point. Here is my question: I have an LLC for an online store, I just became a notary public and loan signing agent, I already have insurance coverage for both a client and myself which is required. Both businesses are fairly new. Should I add a DBA as "Notary Services" to my current online LLC in the state of Florida, even if it has nothing to do with each other? Please let me know what you think?
Did u ever find the answer to your question?
Should You Get a DBA If You Are Using Your Company for Multiple Businesses?
Thank you for the video, very helpful! So if i have an LLC and decided to start a second business with a DBA my new business cam use the same IEN number as the LLC, correct?
Correct.
Great and informative video. Question: Can I add an already established LLC to a new DBA? I have a car washing business and would like to create a pressure washing business as well as janitorial business, I will create a DBA but wanted to know can I transfer the first business? Thank you in advance.
What is the order of setting up a DBA and LLC? 
Hi Aaron,
This was a good video, thanks.
I have a active LLC and want to add a DBA under it, do I have to register the Trade Name as a business in order for me to do so?
My business is in Maryland.
That is great to hear. Thank you for sharing your thoughts. Here is a potentially helpful resource: aaronhall.com/can-you-use-a-single-llc-for-multiple-dbas-for-multiple-businesses/
Thanks so much for your very informative video
Quick question, when filing for a DBA for an LLC, Do I have to report to the IRS that I am starting a totally new business under a DBA of my LLC that has an EIN?
Thank you in advance.
Do you have to tell the IRS about a DBA for your business?
Hi! I am about to turn my primary residence into a rental property, it is my first rental ever! Since I bought my house last year with FHA with a low down payment I barely have any equity in the property. With that said should I set up a DBA Or should I do an LLC, Since it’s my first rental property and I barely have equity and cash flow is minimal I was thinking I should just set up a DBA instead of an LLC but maybe after a few properties and I will transfer them all into an LLC. What do you think?
Is it possible to do a DBA for one rental property?And what the property management company use the DBA name on the renters contract when they sign it?
If you form an LLC outside of your state (ex : Delaware), does the state that you live in abide by the rules of the state where your LLC was formed?
2 Questions: If I do a DBA do I still need two EINs? If its a Serial LLC, would I need two EINs? I currently have a Real Estate Service Business which is an LLC. The other business I am starting is also in real estate just in a different lane of real estate than the first
Generally, a DBA should use the same EIN as the LLC. Minnesota doesn’t have serial LLCs, so I don’t have a lot of experience with them. As always, please remember this is general educational information. You should use this information to identify issues to discuss with your professional advisors, not as a replacement for a professional advisor.
@@Hall great thank you for that information. I live in Indiana. I will find an attorney or CPA to discuss this further.
Thank you!
Hi! I’m a bit late on this video. Thanks for all the info. My main question is this. Say I want my llc name as something basic, for example, “Sugared Soul LLC” but I want to market it as “Sugared Soul Sweets & More” Am I required to register that name as a DBA?
In general, you cannot use any name other than your company name. If you do, you risk losing your "limited liability" shield. But you can offer products, programs, services and divisions. For example, Nike doesn't need a DBA for Nike Shoes because "Nike" is a DBA for "Nike Inc" and "shoes" is the product.
So for example, if you get a DBA for "Sugared Soul," you could use "Sugared Soul Sweets," "Sugared Soul Cakes," etc.
As with all comments here, I am providing this as general education. Before relying on this, consult with an attorney in your jurisdiction.
Thanks for this video ! I just got my LLC last month and now I want to change the name of my spa , would you say just adding a DBA would be best ?
I didn’t open yet or launch anything !
You have two options: file to change the name or have both names by setting up a DBA. Most people just change the name, they don’t do a DBA. This can be done with your state’s LLC registration office.
Thank you for the clear distinctions. I have a LLC and want to do a DBA. I have insurance for work that would be done under the DBA. The insurance is in my name not the DBA. Is that a problem? I am and will be the only employee under that DBA. I am a Registered Nurse who works as a Independent contractor.
Glad it was helpful! Here is a potentially helpful resource: aaronhall.com/insurance-and-dbas-a-quick-explanation/
Thank you. Is it typical to start a DBA w/ a co owner, who is not an owner of the original LLC? If so, assuming the risk or obtaining an insurance policy, is it still worth it?
Glad it was helpful! Thank you for sharing your thoughts. Here is a potentially helpful resource: aaronhall.com/who-gets-the-insurance-policy
I have a Photo Booth rental business but want to venture into a vending machine business. Would a DBA work for this?
So if I’m interested in trucking one llc is good are do I need to follow up with a dba to put on my truck
If you have an LLC, you can put that name on your truck. You don’t need a DBA. A DBA is optional.
So with a series LLC do you get a separate EIN for each company under the parent company? Do you need a bank account for each one? Also, is it considered co-mingling if you use your personal funds to fund your business when starting up?
I am researching LLC to...I ran across a tax person who said if that happens pay yourself back. submit the receipt for reimbursement. just as you would do if you used your money to buy something for your job. they wouldn't reimburse you with out proof if payment.