Great explanation! Thank you!

@Hall

7 ай бұрын

I appreciate your message. Thank you!

Thanks Aaron for making this video. I have this issue now where I have a dba as a sole proprietorship with an ein and dun and brad street number. I have a 2 year llc but its a different business then the dba. I was thinking since the dba is growing to adopt the dba under the existing llc. But im not sure how this would look to banks because i dont want to the lose the time ive been operating the dba which is 5 years if i create a new llc for it.

@Hall

2 ай бұрын

It's great that your DBA is growing and you're considering how best to structure it moving forward! Adopting your DBA under your existing LLC could be a sensible move, especially since it allows you to maintain the operational history and potentially the credit history that you've built up under the DBA. When you incorporate the DBA into the LLC, you wouldn't necessarily lose the operating history of the DBA. In fact, businesses often transition sole proprietorships into LLCs or incorporate them into an existing LLC to benefit from the limited liability protection while maintaining their business history. Here are some points to consider and steps you might take: 1. **Credit and Banking Relationships**: Inform your bank and any creditors about the change in structure. If the bank sees that the business is simply transitioning to a different structure and not starting anew, they may continue to consider the business's operational history. Ensure all accounts are updated to reflect the new legal structure. 2. **Maintaining Continuity**: Use the same EIN and Dun and Bradstreet number if possible. Since these are already associated with your DBA, continuing their use under the LLC could help maintain continuity in your business records and credit history. 3. **Legal Documentation**: Amend any contracts, agreements, or registrations to reflect the new business structure. This includes updating the business name on contracts, licenses, and other legal documents to the LLC’s name while noting that the business was formerly operated as a sole proprietorship under the DBA. 4. **Communicate with Stakeholders**: Notify your clients, suppliers, and partners of the change in business structure. Transparency can help maintain trust and continuity in your relationships. 5. **Consult a Professional**: As always, it’s wise to consult with a business attorney or a financial advisor to ensure that all legal and financial implications are properly addressed, especially regarding how this change will look to banks and other financial institutions. Transitioning your growing DBA into your existing LLC can be a strategic decision to leverage the strengths of both, provided it's executed with careful consideration of the legal and financial implications.

If I own the business and property at same address, Should I make two LLC or keep everything under one ?

@Hall

5 ай бұрын

Thanks for your comment. Here is a potentially helpful resource: aaronhall.com/choosing-between-another-llc-or-a-dba-for-your-new-business-venture

In what case would it make sense for anyone to have 1 LLC with 2+ DBA’s and not just make separate LLCs

@Hall

2 ай бұрын

Thank you for sharing your thoughts. I appreciate the question. This article might be helpful: aaronhall.com/should-you-create-a-second-llc-or-use-a-dba/