Business entity vs. DBA: What’s the difference?

Many people think a business entity is the same thing as a DBA, which stands for “doing business as.” In fact, they have different meanings and purposes.

A business entity is a type of business structure, such as a sole proprietorship, limited liability company (LLC), and partnership. Each structure has different legal implications and determines what kind of taxes you have to file.

Helpful business entity resources

A DBA is the name under which a company does business. It’s not the legal name of the company. In Texas, if you conduct business under a specific name—like Welcome, Y’all Realty—but your business entity’s legal name is Jane Doe Real Estate Services, LLC, the law requires you to register Welcome, Y’all Realty with the Texas secretary of state. You must also submit this information to TREC using the Notice of DBA or Assumed Name for Broker’s License form (DBA-2).

Helpful DBA resources

About Texas Association of REALTORS®

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