The Freelance Toolkit: DBAs, Trademarks, and More

This article is sponsored and written by our friends at LegalZoom.

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You've got the skills. Let's talk business.

You've put in the work, honed your skills, and built a freelance career from the ground up. But what about the less-glamorous stuff, like legal and financial structures? The thought of LLCs, DBAs, and trademarks can feel like a headache waiting to happen, but they're not just a bunch of legal jargon—they're the very tools that protect your hard work. This guide is for you. We'll walk through what these terms actually mean and why they're essential for your professional growth, so you can stop worrying about the legal side of things and get back to what you do best.

LLC vs. Sole Proprietorship: The First Big Decision

When you first started freelancing, you were automatically a sole proprietorship. That's the simplest and most common business structure. Essentially, you and your business are one and the same—legally speaking, there’s no separation. A Limited Liability Company, or LLC, is a more formal business structure that creates a legal distinction between you and your business.

So, why go through the hassle of setting up an LLC? The key benefit is in the name itself: liability protection. As a sole proprietor, if your business is sued, your personal assets (your savings, your house, your car) are on the line. With an LLC, your personal assets are protected. For example, if a client sues you over a project, they would typically be limited to going after your business's assets, not your personal ones. This is a critical piece of mind as your freelance career grows.

While an LLC offers liability protection, there are other differences to consider. In addition to the legal protection, you'll want to compare the two structures in terms of taxes and administrative paperwork. An LLC generally requires more formal steps to set up and maintain, but for many freelancers, the added security is well worth the effort.

It's also important to remember that the rules for setting up an LLC can vary from state to state. What works for a freelancer in California might be different for someone in Florida. Make sure you check the requirements for your specific location.

What About a DBA? Why You Might Need a "Doing Business As"

You've chosen your legal structure, but what if you want to use a different name for your brand than your own? That's where a DBA, or "Doing Business As," comes in. Simply put, a DBA is a name you use for your business that is different from your own legal name. Unlike an LLC, a DBA is not a legal business structure; it's simply a registered name for marketing and operational purposes. It's often called a "fictitious business name" or "assumed name."

As a freelancer, you might use a DBA if you want to brand your services without forming a formal business entity just yet. For example, if your name is Jane Doe but you want to market your services under the name "The Content Coven," you would register a DBA for "The Content Coven." This allows you to legally operate under that name, including opening a bank account and signing contracts.

The Next Steps: Naming, Banking, and Taxes

Once you've made the big decision about your business structure, there are a few practical next steps. First, you'll want to check for name availability. Whether you're using your legal name for your LLC or plan to use a DBA, a quick search can save you a lot of headache down the road. This ensures your brand is unique and available for use in your state.

Next, it's time to set up shop. This includes practical tasks like opening a business bank account. This is a critical step for maintaining the liability protection an LLC provides, as it keeps your personal and business finances completely separate. You'll also need a bank account in your business's name to cash checks made out to your company.

And finally, a quick word on taxes. As an LLC owner, you’ll typically pay taxes on your business income through your personal tax return, which is often referred to as “pass-through taxation.” When you're ready to take things to the next level, you might consider electing to be taxed as an S-Corp, which can offer potential tax benefits for more established businesses. 

Trademarking Your Brand

You've worked hard to build a reputation. A trademark is how you protect it. A trademark is a word, phrase, symbol, or design or a combination of these that identifies and distinguishes the source of your goods or services from others. For a freelancer, this could be your unique business name, your logo, or even a tagline that you've built your brand around. Registering a trademark prevents others from using your brand identity in a confusing way.

Think of it like this: your freelance brand is a signature dish you've perfected, like a secret family recipe for the best homemade sourdough. You've built a reputation for this sourdough, and people buy it because they know it's yours and the quality is consistent. Without a trademark, another baker could start selling their own bread using your name and a similar logo. This could confuse your customers, damage your reputation if their product isn't as good, and steal a piece of your business. A trademark is like putting a lock on that recipe name, ensuring that when customers see it, they know they're getting your work and the trust you've built.

Your Business, Protected

At the end of the day, your freelance business is more than just a side hustle, it's a brand you’ve built with hard work and talent. Taking the time to understand and implement these legal and financial tools isn’t just good business practice; it’s an act of professional self-care. If you decide to start an LLC, then choosing that legal structure, protecting your brand name with a DBA, and safeguarding your intellectual property with a trademark are the steps that can transform your passion into a protected, sustainable career.

We've covered a lot of ground, but you don't have to tackle it all at once. The important thing is to get started!