LLC, DBA, or Corporation: Which Is Best for Your Business in the United States?

Annabelle Torres
Jun 4
3 min read

Are you thinking about starting a business in the United States and unsure whether to register an LLC, a DBA, or a Corporation? This is one of the most important decisions for any entrepreneur—especially if you’re part of the Latino community and starting from scratch.

In this article, we break down the differences between an LLC, DBA, and Corporation in a simple, easy-to-understand way so you can make the best choice based on your goals, budget, and risk level.

What Is an LLC?

LLC stands for Limited Liability Company.

Advantages of an LLC:

Protects your personal assets in case of debts or lawsuits.
Easy to manage and involves fewer formalities than a corporation.
Can have one or multiple owners (called "members").
Allows you to separate your personal finances from your business finances.

When to Choose an LLC: An LLC is ideal for small businesses with a moderate level of risk (e.g., selling products, offering in-person services, or dealing with clients).

LLC Costs:Fees vary by state. In Florida, for example, registering an LLC costs around $125, plus about $138 annually to keep it active.

What Is a DBA?

DBA stands for Doing Business As, which allows you to use a trade name without forming a separate legal entity.

Advantages of a DBA:

Lets you operate under a business name without forming a formal company.
Quick and inexpensive to register.
Great for freelancers, online sellers, or testing a business idea.

Disadvantages of a DBA:

Does not offer legal protection. You are personally liable for any debts or legal issues.
Does not separate personal and business finances.

When to Use a DBA: When you want to use a brand name different from your personal name but aren’t ready to form an LLC or Corporation.

DBA Costs: Registration fees range between $10 and $100, depending on the state.

What Is a Corporation?

A Corporation (also known as Corp or Inc.) is a more formal legal entity, designed for businesses aiming to scale significantly.

Types of Corporations:

C Corporation (C-Corp): Ideal for startups seeking investors and issuing stock.
S Corporation (S-Corp): Avoids double taxation but has ownership restrictions.

Advantages of a Corporation:

Full protection of personal assets.
Can issue shares and attract investors.
May improve business credibility with banks and large clients.

Disadvantages:

Requires more paperwork, tax compliance, and professional accounting.
More expensive to maintain than an LLC or DBA.

Corporation Costs:Initial registration ranges from $100 to $500, depending on the state, plus ongoing accounting and maintenance fees.

Comparison: LLC vs. DBA vs. Corporation

Feature	LLC	DBA	Corporation
Legal protection	Yes	No	Yes
Administrative burden	Medium	Low	High
Initial cost	Medium	Low	High
Best for...	Small/Medium businesses	Freelancers, sellers	Startups, large companies

Which Option Is Best for You as a Latino Entrepreneur?

If you’re testing a business idea and want something affordable: Start with a DBA.
If you’re already earning income and want to protect your personal assets: An LLC is your best bet.
If you plan to scale quickly, seek investors, or sell shares: You need a Corporation.

Conclusion

Choosing between an LLC, DBA, or Corporation is key to protecting your business and growing legally in the United States. There’s no one-size-fits-all answer—it depends on your goals, resources, and type of business.

Before making a decision, review your state’s regulations and, if possible, consult a tax advisor or legal professional who specializes in immigrant or Latino-owned businesses.