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Decision 0002 · One LLC with DBAs, not multiple LLCs

Status · Accepted · 2023 (DBA for "Insights by Omkar"), reaffirmed 2026-04 Author · Omkar Jaliparthi


Context

The studio operates multiple product brands under one legal entity. Going forward, additional brands will exist — the astrology API ships under its own product name, the studio itself has a public brand, and further platform products are on the roadmap.

The question: one LLC with multiple DBAs, or a separate LLC per brand?

Options

A · One LLC · multiple DBAs

  • Lowest ongoing cost (one state filing, one tax return, one bank structure)
  • Liability shield is shared — a legal issue with one brand can touch the others
  • Simpler accounting; harder to cleanly sell a single brand later

B · One LLC per brand

  • Strongest liability segmentation — problems at one brand stay at that brand
  • Clean sale surface — each LLC can be sold independently
  • Multiplies filing cost, tax complexity, banking, and compliance
  • Requires inter-LLC agreements for shared services (engineering, ops)

C · Holding company + subsidiaries

  • Best-in-class liability structure, clean sale paths
  • Sized for a different stage — legitimately excessive at solo-founder pre-revenue
  • Ongoing overhead dominates at this scale

Decision

Option A · One LLC with DBAs. Revisit at revenue thresholds that justify the overhead of segmentation.

Rationale

  1. Cost-to-benefit match. At solo stage with no product carrying outsized liability exposure, segmentation's cost exceeds its benefit.
  2. Operational simplicity. One bank account, one tax return, one payroll (when it exists), one set of compliance renewals.
  3. Reversibility. A brand can be spun into its own LLC later if circumstances warrant — that's cheaper than living with multi-LLC overhead from day zero.
  4. Liability concentration is acceptable here. No single product currently carries a risk profile that justifies walling it off from the rest.

Consequences

A legal problem with one product touches the whole LLC; selling a single brand requires either an asset sale or a pre-sale restructure; and brand-specific books exist logically in accounting but not legally. In exchange: one tax season, one registered agent, one state fee, and new brands launch with a DBA filing ($30–$60 and a notice publication depending on state) rather than a full LLC formation. Brand structure iterates quickly — DBAs can be added or retired without touching the legal entity.

Operational rules for the multi-DBA setup

  1. Brand books are tracked separately in accounting even when legally one entity — supports future spin-outs
  2. Contracts explicitly name the DBA in use — "Omkar's Holistic Services LLC, doing business as Insights by Omkar"
  3. Marks and copyrights file under the LLC — the legal owner is the LLC, not the DBA
  4. No commingling of product-specific liabilities (e.g., each product has its own privacy policy and terms tied to its own domain)

Revisit triggers

  • A product takes on materially higher liability than the others (e.g., consumer financial product, healthcare data)
  • A brand reaches revenue or valuation that makes its independent sale plausible
  • Insurance coverage becomes impractical under a shared LLC

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