Podcast Business Setup: DBA vs LLC

Author: Janae Strickland-Nunn

When I began my podcast journey I immediately got a Doing Business As (DBA). Not because I knew what I was doing, I just knew if I was serious about turning my podcast into a business I needed a DBA. Now that I have done my research I know that I need an Limited Liability Company (LLC). If you are like me, when I first started these items sounded intimidating, and that’s okay. At the end of this, you will know the difference between a DBA and LLC and which is right for your podcast. 

What is a DBA?

DBA means you can do business under a different name. So instead of doing business as Janae, I can do business under my podcast name Confessions From a Red Couch. DBAs can help in the development of brand recognition and it allows the business owner to open a business account and receive payments in the name of the business. 

What is an LLC?

LLC means that a business is operating as a separate entity from its owner. It is operated by members or a manager. The members are usually the owners of the company while the manager is someone who just manages it. The LLC includes more tax flexibility where it can be taxed as a sole proprietor, partnership, or corporation. 

Which is right for my podcast?

This is where we need to look at the difference between the two. One of the differences is liability protection. Under a DBA, there is not a separation between you and your business, so all of the expenses created on behalf of the business are the responsibility of the business owner. With an LLC, the podcast's expenses are separate from the owner's expenses. 

The costs and annual fees you would have to pay each year differs between the two. In Texas, an LLC costs $300 plus annual fees vs. a DBA that only costs between $15-$20 with no annual fees. As you can see the costs between the two are drastically different.

Now here's something really important, with an LLC the name you register does not expire, it's permanent, but there are restrictions. If you would like to change it, you would have to pay a name change fee. A DBA will expire, before this happens you will have to renew it. This can be a problem because if you forget to renew someone else can take your name. 

Whichever you decide depends on your vision for your podcast/business. You can sell goods or offer services with both. The good thing is you aren't limited to one or the other. You may start with a DBA and move to an LLC or vise versa, the decision is up to you.