DBA to LLC?

[Tara Piantanida-Kelly]

Hi All,

If I register my DBA as a sole proprietor in my local county, can I at some point change that to an LLC (either single member or multiple member)?

Thanks!

Cheers~

Tara

[Christopher Mendoza]

@Tara Piantanida-Kelly Yes, you can proceed with your current business as a DBA and then transition into an LLC. You will, however, have to transfer the assets to an LLC in order to benefit from the LLC. You may want to check the name availability of your prospective LLC name. Sometimes the name is unavailable or it conflicts with the name of a current LLC. You can search the secretary of state's website for this function, although the website may simply do an availability analysis (instead of a conflicts analysis). If you want both, you may want to call the secretary of state and ask whether the prospective name is unavailable or conflicts with another entity. If it is available and does not conflict, you can wait until it is time to form the LLC (risk someone taking the name) or reserve the name (but the period for reservation is generally less than a year).

If you are the sole member of the LLC, then it is a single-member LLC and treated as a disregarded entity (unless you elect to be treated as a corporation). As a disregarded entity, the LLC's activities would be reflected on the owner's federal tax return.