Leave "DBA" World to be an "LLC"
Updated: Jul 13, 2021
Many contractors operate as a "DBA," which means a person works individually but doing business as an entity name - such as John Smith DBA Pro Contractors of Smithville. While this is easy and involves slightly less paperwork by not having an annual filing with your Secretary of State, any minor hassle you're saving can cost you big gains.
A "DBA" provides no personal protection against claims, complaints, and more. If a complaint is successful against you, and we all know there is "that customer" from time to time who is perpetually disgruntled with even the best of work, your personal assets, bank account, vehicle, and more can be subject to seizure as part of that judgment. Some states still require registration of a DBA, so why not swap that form for one that gives you something in return.
By contrast, a limited liability company, often referred to as an "LLC," provides a layer of protection to you personally that a DBA lacks. Taxes remain relatively simple, you're not adding a multitude of forms to your task list, and you can focus on what you do best - create, build, fix - with some peace of mind that you and your family are better protected. An LLC also conveys a greater degree of legitimacy and professionalism to customers, so the designation gives some peace of mind to them that may make them choose you over a competitor.
Leave "DBA" world to become an LLC - we can help, and you won't regret it. Now you know. Pass it on. All For Contractors is All For You!