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If you’re operating a business under a DBA (which means “doing business as,” and is often also referred to as a “trade name” or “fictitious name”), there may come a time where you decide “it’s time to be official! I want to operate as an LLC now.” There is one major reason to do this:

  • Operating as a sole proprietor under a DBA exposes you to personal liability; you are personally responsible for any debts and liabilities in your business. Operating as an LLC puts s separation between you, personally, and the LLC, so that your personal assets (ie. your bank accounts, house, etc.) will be protected from the debts and liabilities of the LLC.

Transitioning from a DBA to an LLC is really similar to the process of just starting an LLC from scratch. Though, there are a few small differences. Read on to find out the steps to take to transition your business from DBA to LLC.

Form the LLC.

You would do this by filing the Article of Organization with the Secretary of State in whichever state you want to form the LLC in.  **This is where it’s a little different for DBAs versus if you’re just starting an LLC from scratch: if you have your DBA registered with your state, you might need to dissolve or withdraw that registration before you file the Articles of Organization to create the LLC. The reason for this is many states’ systems have a way of matching names to know that if this entity name is identical to that one, and most states won’t allow two separate registrations for the same name. So you may need to withdraw the DBA registration prior to filing the Articles of Organization, depending on how your state does things.

This episode of All Up in Yo’ Business discusses the steps to transition your DBA to an LLC. Check out the full video to learn more! Contact us today if you need help with transitioning your DBA and you’re in Colorado. And be sure to subscribe to our YouTube channel for more All Up In Yo’ Business!

Now that you are operating as an LLC, you want to make sure you’re doing everything you can to uphold that limited liability protection that the LLC gives.  Check out: Avoiding The Risks Of A Single Member LLC