DBA vs. LLC Cost — What's the Real Difference?
A DBA is cheap but gives you zero liability protection. An LLC costs more but is a real legal shield. Here's what each actually costs — and the question that decides which you need.
"I'm starting a freelance design business. Should I register a DBA or form an LLC? What's actually the difference and is the extra cost worth it?"
Asked thousands of times on Reddit, Quora, and small business forums. Most answers either oversimplify or skip the cost comparison entirely.
Not legal or tax advice. Business structure decisions have legal and tax implications specific to your situation. Consult a licensed attorney or CPA for advice on your specific circumstances.
- ✓ Simple name registration only
- ✓ Cheap and fast ($10–$100)
- ✓ No annual report in most states
- ✗ Zero personal liability protection
- ✗ You are still a sole proprietor
- ✗ Personal assets at risk from lawsuits
- ✓ Separate legal entity
- ✓ Personal assets protected from business lawsuits
- ✓ More credibility with clients and banks
- ✓ Tax flexibility (sole prop or S-corp election)
- ⚠ Annual report fees ($0–$500/year)
- ⚠ More paperwork to maintain
DBA Cost Breakdown
A DBA (Doing Business As) is a name registration — nothing more. It allows you to operate under a name other than your own legal name. What you're paying for is the paperwork, not any legal structure.
| State | DBA registration fee | Where to file |
|---|---|---|
| California | $26 | County Clerk |
| Texas | $14–$25 | County Clerk |
| Florida | $50 | Div. of Corporations |
| New York | $100–$150 | County Clerk |
| Illinois | $150 | Secretary of State |
| Georgia | $10–$30 | County Clerk |
DBA registrations typically expire after 5 years and need to be renewed for a similar fee.
LLC Cost Breakdown
An LLC has three types of costs: formation (one-time), annual maintenance (recurring), and optional ongoing services.
Use the calculator below to see your specific state's LLC costs:
LLC Formation Cost Calculator
Select your state to see filing fees, annual report costs, and formation gotchas.
The One Question That Decides It
Could anyone realistically sue your business in a way that would threaten your personal finances? If yes, get an LLC. If your "business" is selling handmade scarves on Etsy with $2,000/year in revenue, a DBA is fine. If you're doing consulting, construction, tech work, or anything where a client could claim you caused them harm, an LLC is worth the cost.
When a DBA Makes Sense
- You're testing a business idea with very low revenue (under $15,000/year)
- You have very low liability risk (personal services, arts, crafts)
- You're adding a brand name to an existing LLC (DBA under the LLC)
- Your state has very low DBA fees and you're not ready to commit to LLC costs
When an LLC Is Worth It
- You're earning $30,000+/year from the business
- You work with contracts (consulting, services, construction)
- You have employees or contractors
- Your work could theoretically cause harm clients could sue over
- You want the ability to elect S-corp taxation to save on self-employment tax
- You want credibility with banks, clients, and potential investors
Form Your LLC Online — All 50 States
LegalZoom guides you through LLC formation with state-specific paperwork. Includes registered agent service for the first year.
LLC Operating Agreement Template
A professionally drafted LLC Operating Agreement template covering ownership percentages, management structure, profit distribution, and member exit procedures. Includes both single-member and multi-member versions — the one document every LLC needs.