How to Add a Second Business Name to Your LLC: A Complete Guide

Introduction

Expanding your business often means catering to different markets or launching new product lines. Instead of forming a new LLC, you may consider adding a second business name under your existing LLC. This approach, known as using a DBA (Doing Business As) or trade name, allows your company to operate under multiple brand identities without the hassle of creating separate legal entities.

In this guide, we’ll walk you through the step-by-step process of adding a second business name to your LLC, legal considerations, and key benefits of using a DBA.

What Is a DBA and Why Use One?

A DBA (Doing Business As), also known as a fictitious business name or assumed name, is a secondary name that a business can use instead of its legal name.

Benefits of Using a DBA for Your LLC:

Brand Flexibility – Operate different business lines under distinct names.
Cost-Effective – Avoid the expenses of forming and maintaining multiple LLCs.
Marketing Advantages – Tailor your branding to specific audiences.
Simplified Banking – Open separate bank accounts for different business names while keeping them under one LLC.

Steps to Add a Second Business Name to Your LLC

Step 1: Research State and Local Requirements

DBA regulations vary by state, county, and city. Some states require DBA registration, while others don’t.

To research your state’s DBA requirements:

Visit your Secretary of State’s website.
Check with your local county clerk’s office.
Review state-specific laws for business name registration.

Step 2: Choose a Unique DBA Name

Your second business name must be distinct and available. Follow these steps:

Search the state’s business database to ensure the name isn’t already in use.
Check domain name availability if you plan to create a website.
Avoid using words that could mislead consumers about your business structure.

Step 3: Register the DBA with the Appropriate Agency

Once you’ve chosen a name, you need to officially register it. The process typically involves:

Filing a DBA application with your state or county.
Paying the required filing fee (typically $10 to $100 depending on location).
Publishing a notice in a local newspaper (required in some states).

Step 4: Update Business Licenses and Permits

If your business requires specific licenses or permits, update them to include your new DBA. Check with:

State and local business licensing agencies.
IRS if the new name will impact tax reporting.

Step 5: Notify Your Bank and Update Contracts

To operate under your DBA name effectively:

Inform your bank and open a separate business account if needed.
Update contracts and legal agreements with vendors and clients.
Modify business marketing materials to reflect the new name.

Legal and Tax Considerations

DBA vs. LLC: Understanding the Differences

A DBA is not a separate legal entity and does not offer personal liability protection.
Your LLC remains legally responsible for the DBA’s operations.
Taxes are filed under the LLC, not the DBA itself.

Does a DBA Affect Taxes?

No, a DBA does not change how your LLC is taxed. However:

The IRS still recognizes your LLC as the legal entity.
If you hire employees under the new name, you may need an updated EIN (Employer Identification Number).

Common Mistakes to Avoid

Not checking name availability before filing.
Skipping local or county registration where required.
Failing to update licenses and contracts with the new DBA.
Assuming a DBA provides legal protection like an LLC does.

Conclusion

Adding a second business name to your LLC through a DBA is a smart and cost-effective strategy for expanding your brand. By following the right steps—researching requirements, choosing a name, filing the DBA, and updating legal documents—you can operate under multiple names while maintaining a single LLC.

If you’re ready to take this step, check your state’s regulations today and start the process of expanding your business presence!

Josiah Sparks

Josiah Sparks is a business writer and strategist, providing expert insights on management, leadership, and innovation at management-opleiding.org to help professionals thrive. His mission is to empower professionals with practical knowledge to excel in the ever-evolving business landscape.