DBA — Doing Business As

  1. What Is A Trade Name (DBA) And How To File One
  2. Who can register a Trade Name?
  3. Advantages of DBA
  4. Disadvantages of DBA
  5. Filing a DBA
  6. Ready to Order?
  7. Additional Information
  8. What is a DBA, or Doing Business As? | Assumed Business Names | Harvard Business Services
  9. Do I need a DBA?
  10. Where can I set up a DBA?
  11. Multiple DBAs
  12. DBA vs. Multiple LLCs
  13. Значение DBA в LLC в США
  14. Значение DBA в LLC США
  15. Как зарегистрировать DBA в LLC США
  16. Особенности добавления DBA в LLC в США
  17. Преимущества и недостатки использования DBA для LLC США
  18. DBA (Ведение бизнеса как): что это такое и как я регистрируюсь?
  19. Что такое администратор баз данных?
  20. Зачем мне регистрировать DBA?
  21. Получите бесплатный личный кредитный рейтинг каждую неделю от Investmentmatome
  22. Как зарегистрировать имя администратора базы данных?
  23. Хотите узнать больше о начале бизнеса?
  24. Doing Business As (DBA): What Is It and Why Is It Needed?
  25. The commercial version of this is called doing business as (DBA)
  26. What Exactly Is Doing Business As?
  27. Why Would a Small Business Need a DBA Name?
  28. For Sole Proprietors
  29. For Corporations and Limited Liability Companies (LLCs)
  30. Why a Doing Business As May Be a Good Business Strategy
  31. 1. It’s the Easiest Way to Register Your Name
  32. 2. You Can Operate Multiple Businesses
  33. 3. DBAs Keep Your Business Compliant
  34. 4. You Don’t Want to Operate a Business under Your Own Name
  35. 5. You Want a Creative or Distinctive Company Name
  36. 6. Your Bank Asks for a DBA to Open a Business Account
  37. 7. You Want to Capture a Different Market under a New Domain Name
  38. 8. To Stake a Claim on Your Business Name
  39. Still Not Sure If Doing Business As Is Right for You?
  40. The Ins and Outs of Filing for a DBA
  41. Good Standing
  42. You Can’t Use Inc. or Corp
  43. Announcing Your DBA
  44. Payment and Filing Methods Vary
  45. Consider Applying for an Employer Identification Number
  46. DBAs Need to Be Renewed
  47. Changes You Make May Impact Your DBA
  48. Think Twice about Skipping the DBA Step
  49. Final Thoughts on DBA
  50. DBA (Doing Business As)
  51. We go beyond just filing the application
  52. Does my LLC or corporation need a DBA?
  53. Do I need a DBA if I'm using my personal name?
  54. Is there a difference between a DBA and a trademark?
  55. Can someone else register the same name?
  56. Didn’t find the answer you need?
  57. Ready to start your DBA?

What Is A Trade Name (DBA) And How To File One

DBA - Doing Business As

Trade name (also called «fictitious business name», «assumed name», or DBA for «doing business as») is a legal way to do business under a particular name that you file with the state, county, or in some cases local municipality.

Its the easiest and most cost effective way to do business under a new business name without having to create an entirely new business entity. With DBA you can accept payments, advertise, and otherwise present yourself under that name.

Who can register a Trade Name?

Trade name can be registered by any business, including sole proprietorships, general partnerships, as well as organized and incorporated entities such as LLCs, corporations, nonprofits and limited partnerships.

KEEP IN MIND: a DBA is just an alias, hence by itself it is not an actual business entity. It must belong and be associated with a specific legal entity.

Advantages of DBA

  • For those on a budget registering DBA is a cost-effective and simple way to start doing business, without ongoing maintenance or the costs associated with forming a corporation or LLC. Converting the business to a corporation or LLC is easy, once your business is running profitably.
  • Sole Proprietorships: as a sole proprietor DBA allows you to use a business name rather than your personal name. Having DBA gives your business more credibility.
  • Organized Entities: DBA allows a single legal entity (corporation, LLC, etc.) to operate multiple businesses without creating a new legal entity for each business.

Disadvantages of DBA

  • As a sole proprietor having a DBA does not protect your personal assets. It is just a certificate you are legally required to file, allowing you to legally do business under a certain name, and helps you open a bank account, as an example. For real asset protection it is recommended to form a separate entity (corporation, LLC, etc).
  • DBA is geographically limited to the jurisdiction where you filed it. That means you can only operate your business under that name in that county or city, and for each additional county or city you have to file separate DBA (exception is states where DBA is filed on the state level).

Filing a DBA

We make it easy to register your DBA. We handle all the state, county, and in some cases, city requirements where a business is planning to use a name in addition to ensuring the publication requirements are met for the appropriate jurisdictions.

PLEASE NOTE: Many counties and municipal jurisdictions that register DBAs require notarization of DBA application with the local notary public. In cases these we will prepare all the necessary applications, enclose the payment (typically a money order) and stamped envelope, and will dispatch this package to your address with further instructions.

Typically you will need to notarize the application (you can usually do it for free at your bank), seal it in the enclosed envelope with enclosed payment and drop in mail. Once the package is received at the issuing office we will take over and proceed with monitoring the status of the application until DBA is successfully registered.

Ready to Order?

We will prepare and file your DBA application in a professional manner, and follow up with the registering authorities including resolving any issues, until your DBA is registered. We do all the work, all you need to do is complete our simple order form.

Additional Information

If you have any questions about all of the above and anything else our customer service representatives are here to help. You are invited to contact us via Live Chat, Skype, email, or call our customer service at +1 (347) 773-4343 (Also Viber, WhatsApp, Telegram).

Our company is an independent business filing specialist and we are not affiliated with any state or goverment agency. We offer professional business filing services that ensure your company is accurately filed and in compliance.

Thank you very very much for your help and time! You have created a fabulous company and have impeccable customer service. I have never seen before such instant help.

Vanessa Coburn Bronze Tanning Salon Inc.

Winthrop MA

WOW !!! Just a great service. I'm very satisfied with the great help I received from one of the agent (Robert K.). I had no clues on how to set up my business and what to do. Minutes after talking to the rep, I knew exactly what to do.

The best part: They don't even try to sell you any extra services. He actually help me remove additional services i didn't need. I felt talking to a friend who knew what I was going through. First great business move I did. I will definitely recommend the service to anyone around me.

THANK YOU Robert and Thank You MyUSACorporation.

Eric Seu The Furniture Network, LLC

Dallas TX

Источник: https://www.MyUSACorporation.eu/dba.html

What is a DBA, or Doing Business As? | Assumed Business Names | Harvard Business Services

DBA - Doing Business As

A DBA, which means «doing business as,» is simply a fictitious name registration, also referred to as an assumed business name. It’s a way for a company to operate under a name other than its registered name. However, it does not provide the same legal protections as having a separate business entity, such as a Corporation or LLC.

Every day, people inquire about setting up a DBA for their Delaware LLC or Delaware corporation. Business owners often choose to operate under multiple, different names for a number of different ventures. For example, ABC Company, Inc. may find the need to set up multiple, different DBAs using the names XYZ Landscaping, Inc. and 123 Construction, Inc.

While both XYZ Landscaping, Inc. and 123 Construction, Inc. are still legally recognized as ABC Company, Inc., the fictitious names can better convey the services and products the company offers its potential customers.

Do I need a DBA?

In my experience, the current trend has business owners leaning toward incorporating a Delaware LLC or corporation with the actual name under which they plan to operate. Since the company name is often linked to a website, trademark, patent, logo or some other type of branding, setting up the DBA is kind of unnecessary.

Still, some situations do make a lot of sense for filing a DBA. Some examples of such situations would be:

  • A business begins to offer a product or service that does not fit under the registered company name. For instance, a bicycle repair shop that begins selling car tires may want a separate name for that piece of the business.  
  • A company formed in Delaware only needs to have a name that is unique to Delaware. However, if the company applies for Foreign Qualification in another state, such as California, the name must also be unique in California. If the original name of the company is already being used by another business in California, the company can create a DBA to operate in that state.  
  • Franchise owners often use DBAs. Because they only own their independent franchise business(es) and are not owners at the corporate level, they typically form their own company under a different name, then use the franchise name as the DBA. For example, a Wendy’s owner in Miami might form “Miami Restaurant Holdings, Inc” as the company owning the franchise, then file a DBA to operate as Wendy’s of Miami.

For these situations and many others, it is not uncommon for people to set up a DBA as a fictitious name for a corporation or LLC formed in Delaware. The question then becomes, where do I setup the DBA?

Where can I set up a DBA?

Traditionally, in Delaware, the DBA registration is completed in the county in which the company predominantly operates and does business.

Next you might be wondering if you need to file for your LLC or corporation DBA in Delaware. Again, it depends where your company physically operates and transacts business.

If the company is actually located and conducting business in the state of Delaware, then the answer is typically yes.

You can fill out the necessary forms online to set up your DBA in Delaware. Depending on where in Delaware the company is headquartered, the DBA registration can be filed with the New Castle, Kent or Sussex County Prothonotary's Office. Usually, you’ll need to provide this information:

  • Name and address of the corporation or LLC
  • Date of formation
  • The DBA or fictitious name
  • Nature of business
  • Names and addresses of members/directors/officers
  • Contact phone number
  • Name of authorized person signing the title and notarization

If your company does not operate in Delaware—if it operates in any other state—the same rules, in general, apply for DBAs. The DBA is still handled at the county level. If your Delaware LLC or corporation is operating in another jurisdiction, you may need to register for Foreign Qualification before filing for the DBA.

We’re happy to answer any questions you have about setting up a DBA for your Delaware LLC or corporation. Give us a call today at 1-800-345-2677.  We’re ready to help you.

Multiple DBAs

We are sometimes asked how many DBAs a single LLC or corporation can have. The answer is that there is typically no limit that states or counties impose. Your company can have one, two, or ten DBAs if it wishes.

However, you should always consider if multiple DBAs are the most strategic way to proceed. While they do allow your business to operate under multiple names, they can also present some issues, such as:

  • Higher overall risk by having each “arm” of the business under the same company
  • Complicated tax filing
  • Confusion for customers and vendors
  • Additional costs for each DBA filed

DBA vs. Multiple LLCs

As a final point, our clients sometimes are conflicted between utilizing a DBA and just setting up a separate LLC in addition to the one they already operate. There is no blanket rule about which is correct or incorrect; rather, each situation involves its own unique circumstances, as well as the preferences of the business owner.

It is important to keep in mind that using multiple LLCs does provide a greater level of protection and lower overall risk due to having each LLC be a separate legal entity. Issues that arise in one LLC typically do not put the other LLC's assets at risk. This is not true of DBAs, where the registered LLC and each other DBA are all considered to be the same legal entity.

Next: Operating Multiple Businesses Under One LLC

*Disclaimer*: Harvard Business Services, Inc. is neither a law firm nor an accounting firm and, even in cases where the author is an attorney, or a tax professional, nothing in this article constitutes legal or tax advice.

This article provides general commentary on, and analysis of, the subject addressed. We strongly advise that you consult an attorney or tax professional to receive legal or tax guidance tailored to your specific circumstances.

Any action taken or not taken this article is at your own risk. If an article cites or provides a link to third-party sources or websites, Harvard Business Services, Inc. is not responsible for and makes no representations regarding such source’s content or accuracy.

Opinions expressed in this article do not necessarily reflect those of Harvard Business Services, Inc.

More By Andrew Millman


There are 7 comments left for What is a DBA, or Doing Business As?

Arun Apte said: Thursday, September 24, 2020

Hi, we are a Harvard Business Services customer. We setup a Delaware Single Entity LLC. We have now branched out into a related industry and want to be able to open a business checking account in a different company name than our legal name. Can we open a checking account using a DBA or do we need to create another LLC?

HBS Staff replied: Friday, September 25, 2020

This is a question that would be best answered by your bank. Each bank's rules are different and they make their own decision about what name can be used on the accounts. Sorry we cannot be of more assistance!

Danny said: Sunday, August 16, 2020

I have an LLC I wish to add a DBA to. I wish to keep my LLC protection, can I keep under same LLC protection? How much do I look to pay?

HBS Staff replied: Monday, August 17, 2020

Your DBA simply allows you to operate your business with an alternate name.

The LLC structure and protections remain in place, but keep in mind that if you have multiple lines of business, any liabilities, debts, etc.

are not separated as they would be if you had two separate LLCs. DBAs are typically filed at your county offices, so please check with them in regards to price.

Rita said: Monday, February 17, 2020

Hi, We have recently incorporated MoMo Me LLC in Delaware with HBS's assistance. Please can we use MoMo Me as our trading name or DBA?

HBS Staff replied: Monday, February 17, 2020

Typically, our clients will choose how they want to market their own company name, such as with or without the LLC suffix. If you are unsure of what is permitted, you can check with your local county offices or ask your lawyer or tax professional.

SW said: Tuesday, September 10, 2019

If you run Delaware corporation as an internet company that does not do business within Delaware, are you required to register any fictitious name in Delaware counties? Will the State of Delaware allow you to use fictitious names without registration if not doing business within the state?

HBS Staff replied: Wednesday, September 11, 2019

A DBA is typically registered with the county of the state in which the DBA is needed. If your company is already filed in Delaware, you generally are not required to have a DBA in Delaware. An attorney would be the best person to advise you on your particular situation.

leo said: Friday, September 6, 2019

How long I'll have to wait to recive a DBA statusor what it is?

HBS Staff replied: Friday, September 6, 2019

Generally, DBAs are filed in the county of the state in which you're operating. The turnaround time can vary among states and different counties. We recommend contacting your local county office (often the Prothonotary office) to inquire about your expected waiting time.

Источник: https://www.delawareinc.com/blog/dba-or-doing-business-as/

Значение DBA в LLC в США

DBA - Doing Business As

На начальном этапе ведения бизнеса предприниматели обычно используют лишь один вид экономической деятельности. Но в будущем возникает необходимость диверсификации рисков и расширения компании. Именно в такие моменты приходится выбирать: открывать новое юрлицо или же применить «Doing business as»? Зачем DBA в LLC в США и как его добавить мы расскажем в нашей статье.

Значение DBA в LLC США

Дословный перевод DBA звучит «Ведение бизнеса как» и используется для обозначения различных видов/направлений деятельности в рамках одной компании. Вышеуказанный инструмент предприниматели применяют в следующих случаях:

  • повысить конфиденциальность — не хотят вести бизнес под официальным именем;
  • начинают новое направление и таким образом хотят разделить для финансового учета несколько видов экономической деятельности;
  • для маркетинговых целей, когда хотят ввести новый продукт на рынок;
  • для открытия отдельного банковского счета под новый бизнес;
  • создание несколько LLC США под отдельный вид бизнеса не имеет смысла.

Ограничений по количеству DBA в LLC нет. Однако чем количество дополнительных названий больше, тем сложнее правильно вести бухучет.

Регистрация DBA действие не тождественное созданию нового юрлица. Поэтому его наличие не гарантирует защиты активов наподобие нового LLC.

Хотите улучшить диверсификацию денежных потоков — откройте личный банковский счет в США удаленно.

Как зарегистрировать DBA в LLC США

Регистрация DBA осуществляется в зависимости от региона деятельности компании: в штате, округе или городе. Поэтому одной процедуры нет, а если точнее их более 900. Они бывают похожи, а могут и кардинально отличатся. В зависимости от штата подача заявления может осуществляться в офис местного или окружного секретаря, в агентство штата или во все вышеуказанные учреждения.

Для добавления DBA в LLC США понадобится сначала обратиться в местный регистрационный орган, где удастся получить полную информацию о процедуре. Обычно подать заявку на DBA разрешается онлайн.

Но есть штаты, где следует заполнять специальную форму и лично подавать в конкретное агентство.

В подобных формулярах следует указать: официальное название LLC, наименование DBA, направление деятельности, дату создания компании, юридический адрес, наименование участников.

К стандартным требованиям касательно DBA относятся:

  • проверка на уникальность;
  • проверка имени на наличие ограничений: не нарушает моральных и этических принципов и норм;
  • оплата регистрационного сбора (есть штаты, где не применяется);
  • публикация информации в местной газете.

После регистрации бизнесмену выдается сертификат «Doing business as».

Особенности добавления DBA в LLC в США

Начиная процесс добавления новых видов экономической деятельности в компанию, следует учесть ряд особенностей:

  • для регистрации DBA для LLC могут понадобиться доказательства хорошей репутации – подобное свидетельство выдает государственный секретарь;
  • в DBA LLC нельзя использовать суффиксы Corp., Inc.;
  • оплата регистрационного сбора отличается в зависимости от штата – одни принимают оплату  платежной картой, другие – в кассе, третьи — требуют банковский перевод;
  • вести бизнес используя незарегистрированный «Doing business as», запрещено законами штатов, наказание нарушителей разнообразные – от штрафов до уголовной ответственности;
  • время обработки заявки на добавление DBA разнится в зависимости от штатов;
  • многие штаты срок действия DBA для LLC не ограничивают, однако обязывают осуществлять периодическую пролонгацию. Обычно каждые 5 лет следует подавать заявку на продление;
  • большинство штатов требуют новой регистрации DBA, если меняются важные параметры юрлица (юридический адрес, руководство, участники);
  • если штат не принимает заявки на DBA, их следует подавать в каждый округ США, где LLC планирует вести деятельность (за каждую отдельную заявку удерживается дополнительные регистрационные сборы).

Преимущества и недостатки использования DBA для LLC США

Использовать DBA имеет смысл, когда следует разделить несколько направлений в бизнесе. Подобное решение позволит лучше оценивать эффективность, повысить качество контроля над отдельными видами деятельности.

Рационально использовать «Doing business as» с целью продвижения нового товара на рынок – позволяет лучше проанализировать реакцию потребителей и не тратиться на открытие нового юрлица.

Но данный инструмент, имеет ряд недостатков:

  • дополнительные расходы – регистрационные сборы за отдельную заявку;
  • затраты времени на регистрацию, администрирование;
  • не обеспечивает защиту активов как отдельное LLC – когда в другом направлении бизнеса есть риск подачи судебного иска, то риску подвергается вся компания.

Остались вопросы по DBA для LLC или хотите зарегистрировать компанию в США, обращайтесь к нам в онлайн-чат. Мы предоставляем услуги по регистрации юрлиц США, оказываем бухгалтерское и юридическое сопровождение бизнеса, помогаем с выбором оптимальной бизнес-структуры.

В США DBA является дополнительным наименованием отдельных видов деятельностей в структуре одной компании. Н-р, несколько магазинов управляется одним юрлицом, чтобы лучше контролировать их деятельность каждому присвоили отдельное DBA: shop1 и shop2.

Количество DBA не ограничено, но чем их больше, тем проще запутаться и вести бухгалтерию.

DBA рациональней использовать во время продвижения новой продукции на рынке, так как не придется тратиться на открытие нового предприятия, а потом если товар «не зайдет» на рынок – на закрытие. Но с другой стороны вероятность судебного риска в новой сфере, ставит под угрозу весь бизнес, чего удастся избежать, открыв новое LLC.

LLC В США Регистрация Компании В США Соединённые Штаты

Источник: https://internationalwealth.info/offshore-company-formation/chto-takoe-dba-v-llc-v-ssha/

DBA (Ведение бизнеса как): что это такое и как я регистрируюсь?

DBA - Doing Business As

Хотя роза с любым другим именем может пахнуть сладко, название вашего бизнеса может сыграть важную роль в ухаживании за клиентами. Регистрация имени администратора базы данных или «ведение бизнеса как» дает вам гибкость в качестве владельца бизнеса для маркирования вашего бизнеса таким образом, который является объяснительным и привлекательным.

Что такое администратор баз данных?

DBA — также известный как фиктивное фирменное наименование, предполагаемое имя или торговое название — официально регистрирует имя вашего бизнеса, обращенное к потребителю, с местным правительством. Это позволяет работать в небольшом бизнесе под именем, которое отличается от личного или собственного владельца.

Например, если Уильям Шекспир подал DBA, он мог бы работать драматургом под названием «Поэзия и проза Барда».

Зачем мне регистрировать DBA?

Вы должны подать администратору базы данных, если имя, которое вы выбираете для ведения бизнеса, отличается от вашего личного имени или юридического адреса, который вы использовали для включения.

  • Единственные владельцы, которые, по закону, должны будут использовать свое личное имя в качестве имени компании, могут подать администратору базы данных, чтобы создать бренд, который более конкретно относится к типу бизнеса, в котором они работают.
  • Предприятия, которые уже сформировали бизнес-субъект, например общество с ограниченной ответственностью или корпорация S, могут подать заявку на бизнес под другим именем, иногда предпочитая отказаться от «LLC» или «Inc.»,
  • Если вы владеете несколькими предприятиями под одной зонтичной организацией, регистрация администраторов баз данных позволяет разделить предприятия
  • Подача DBA может помочь вам протестировать вашу бизнес-идею, не тратя деньги на включение сразу с места в карьер

Подача DBA не создает отдельный бизнес-объект. Если вы являетесь единственным владельцем, таким как Уильям Шекспир, ваш администратор базы данных не защищает ваши личные активы от ареста в случае иска. Формирование бизнес-единицы означает, что ваши личные активы не подвержены риску, и регистрация DBA не изменит эту защиту.

«Вообще говоря, вам не разрешают вести бизнес под именем, отличным от вашего собственного», не регистрируя его первым, говорит Регина Гордон, владелец юридического офиса Regina Gordon Law PLLC в Нью-Йорке. Регистрация DBA означает, что вы избежите возможных штрафов и штрафов, говорит она.

Если у вас нет зарегистрированного администратора баз данных, говорит Гордон, у вас больше шансов столкнуться с проблемами при открытии банковского счета или подаче заявки на получение кредита, чем в судебном порядке. Когда вы открываете счет или подаете заявку на получение кредита, вам необходимо предоставить документы, подтверждающие, что вы и ваша компания являются законными.

Получите бесплатный личный кредитный рейтинг каждую неделю от Investmentmatome

  • Откройте больше дверей для финансирования своего бизнеса.
  • Задавайте свои цели и отслеживайте свои успехи.
  • Регистрация не повлияет на ваш счет.

Получите свой кредитный рейтинг

Как зарегистрировать имя администратора базы данных?

Требования к подаче заявок варьируются от штата к штату, поэтому ваш первый шаг — зарегистрироваться в вашем канцелярии округа или офисе государственного управления, чтобы определить, как действовать. Однако, вот несколько советов, которые помогут сделать процесс максимально безболезненным:

  • Посмотрите, есть ли у любого другого местного предприятия имя, похожее на то, что у вас есть. Подача DBA не гарантирует защиту имени — это не товарный знак, но некоторые штаты не допускают дубликатов. Проверьте онлайн-базы данных, чтобы убедиться, что имя еще не было использовано. Независимо от законов штата, с точки зрения потребителей, хорошо убедиться, что ваш бизнес не будет легко путать с конкурентом.
  • Если вы планируете создавать бизнес-сайт, выполните быстрый поиск по доменным именам, чтобы убедиться, что ваше имя или что-то близкое к нему доступно.
  • Когда вы зарегистрируетесь, будьте готовы заплатить гонорар, который, по оценкам Гордона, будет варьироваться от 50 до 100 долларов США в зависимости от штата. Некоторые штаты также требуют, чтобы вы приобрели юридическую форму, которую вы заполняете для регистрации.
  • В некоторых штатах вам требуется ежегодное или двухгодичное уведомление о том, что вы все еще используете это имя.
  • Вы также можете подать несколько администраторов баз данных, но каждый из них должен быть зарегистрирован отдельно.

«У меня много клиентов, которые начинают в основном с помощью только администратора базы данных, а бизнес небольшой, и они тестируют, будет ли это работать или нет», — говорит Гордон. «В какой-то момент, когда он начинает расти, именно тогда они решают, что им нужно сформировать сущность.

«Это хороший первый шаг, чтобы проверить воду и посмотреть, будет ли бизнес взлетать».

Хотите узнать больше о начале бизнеса?

Investmentmatome собрал некоторые из наших лучших сведений о начале бизнеса, включая структурирование и написание вашей компании, создание надежного плана и многое другое. Мы поможем вам сделать домашнее задание и начать работу на правой ноге.

Прочтите наше руководство по началу работы

Джеки Циммерманн является штатным писателем в Investmentmatome, персональном веб-сайте финансов. Электронная почта: [email protected] : @jackie_zm.

Обновлено 18 августа 2017 года.

Источник: https://ru.mfginvest.com/dba-doing-business-as

Doing Business As (DBA): What Is It and Why Is It Needed?

DBA - Doing Business As

A company uses a doing business as (DBA) when the name it operates under is different from its legal, registered name.

In life and business, things are not always as they seem. And that’s okay. Some people change their names for personal or professional reasons. A middle name, an abbreviated name, or a nickname might feel more natural and fitting. There’s nothing wrong with having a name that everyone knows, and a name that belongs on a birth certificate and passport.

The commercial version of this is called doing business as (DBA)

In this article, we’ll break them down for you so you can decide if a DBA is right for you. We’ll also tell you how to file a DBA so you’ll be crystal clear on how it works and what responsibilities you have.

What Exactly Is Doing Business As?

In the U.S., a DBA lets the public know who the real owner of a business is. The DBA is also called a fictitious business name or assumed business name. It got its origins as a form of consumer protection, so dishonest business owners couldn’t try to avoid legal trouble by operating under a different name.

When someone files a DBA, it’s normally circulated in some kind of newspaper (maybe you’ve noticed all those “fictitious business name” entries in the local classifieds). It lets the community know exactly who is behind a business.

Why Would a Small Business Need a DBA Name?

In general, there are two reasons a business in the U.S. would need to get a DBA:

For Sole Proprietors

If you’re operating your business as a sole proprietor, you’ll need to file for a DBA if your business has a different name than your own name. For example, if sole proprietor Gordon Flanders wanted to name his garden shop Green Thumbs McGee’s, he’d need to file a DBA.

In some cases, you don’t need a DBA if your business name is a combination of your name and a description of your product or service. In Gordon’s case, if his business were called Gordon Flanders’s Gardening Services, he wouldn’t need a DBA. But, if it’s just his first name, (i.e., Gordon’s Gardening Service), then a DBA is required because it’s not his full, legal name.

If you’re uncertain about whether or not you need to file a DBA, get in touch with your local (town or county) clerk’s office and ask them if it’s necessary.

For Corporations and Limited Liability Companies (LLCs)

A quick refresher on what constitutes a corporation and LLC:

When you incorporate your business, you’re creating a legal entity that is separate from you. This means you’ll be absolved of any personal liability associated with your business.

An LLC is a hybrid of a corporation and a sole proprietorship. a corporation, owners of an LLC will not be held personally responsible for liabilities, but the company will not live on if an owner dies or the business declares bankruptcy.

If you have filed to become a corporation or LLC, you’ve already registered your business name and you don’t need a DBA. However, you will need to get a DBA if you plan on conducting business using a name that’s different than the name filed with your LLC/corporation paperwork.

For example, if Gordon incorporated his business as Green Thumbs McGee’s Gardening Centre, his business would need to file a DBA in order to also operate under “SpringFlowersGardening.com” or “Spring Flowers ‘R’ Us.” wise, if he opened another garden shop, he’d need a DBA for “Spring Flowers Garden Shop.”

In short, you need a DBA to operate with any kind of variation on your original name.

Why a Doing Business As May Be a Good Business Strategy

Filing a DBA sounds a lot of extraneous paperwork, yet there are actually important reasons to get your DBAs in order:

1. It’s the Easiest Way to Register Your Name

If you’re a sole proprietor, filing for a DBA is the simplest and least expensive way to use a business name. You can create a separate professional business identity without having to form an LLC or corporation.

2. You Can Operate Multiple Businesses

For LLCs or corporations, a DBA will let you operate more than one business without having to form a separate LLC or corporation for each one.

Let’s say Gordon wants to get into landscaping design, contracting, tree maintenance, and snow removal.

He can create a corporation with a relatively generic name and use a DBA for each individual business.

His sub-DBAs could include “Green Thumbs McGee’s Landscape Design,” “Green Thumbs McGee’s Tree Maintenance,” etc. This will cut down on his paperwork and expenses when he’s operating multiple projects.

3. DBAs Keep Your Business Compliant

If your business is an LLC or corporation, you enjoy certain legal protections. However, these protections may be invalidated if you’re operating under a different name and didn’t file for a DBA. For example, Gordon may have incorporated Green Thumbs McGee’s, but if he signed a client contract under simply Green Thumbs (or some other variation), that contract may not hold up in court.

4. You Don’t Want to Operate a Business under Your Own Name

Many sole proprietors prefer the simplicity of starting a business under their personal name. But others want some privacy, and separation between themselves and their business. Filing a DBA under a different name means you won’t have to have your personal name on the public record whenever your business is mentioned.

5. You Want a Creative or Distinctive Company Name

Gordon Flanders is a perfectly fine name, but Green Thumbs McGee’s conjures a vivid image of greenery and industry. Many companies give their businesses a name that matches the product or service they provide.

Who can blame Elon Musk for naming his business after pioneering engineer Nikola Tesla, or Sara Blakely for the clever and oddly evocative Spanx business name? But if they had started with “Elon’s Electric Cars” or “Constricting Underwear for Women,” they could have used a DBA to continue running their original businesses with their new and improved names.

6. Your Bank Asks for a DBA to Open a Business Account

Many banks require sole proprietors and partnerships to have a DBA before they open a business bank account. Many banks ask to see the DBA filing or assumed name certificate as proof of registration for the name.

7. You Want to Capture a Different Market under a New Domain Name

Online sales can be huge for any business. Rather than trying to make one website be everything to everyone, you can segment your online market by filing DBAs for different subsets of products or services.

This way, you can create separate websites specifically targeting customers with different needs, (e.g., LandscapingTools.com, SnowRemoval.com). You can have as many fictitious names as you (within reason) all under one business roof.

8. To Stake a Claim on Your Business Name

When you file a DBA, you’re also announcing the name you’ve chosen to the world by putting it on the public record. In some states, a DBA filing doesn’t prevent another business from registering the same name, but it’s worth checking if that’s the case in your state. It could save a lot of problems later.

Still Not Sure If Doing Business As Is Right for You?

If you’re wondering whether a DBA is advantageous for your business, consult an attorney who can help walk you through the possible benefits.

The Ins and Outs of Filing for a DBA

The rules, requirements, forms, and fees associated with filing a DBA are different in each state and county. The U.S. SBA provides a chart that details DBA filings state-by-state.

In some states, sole proprietors and general partnerships file in one office while corporations, LLCs, and other statutory entities file in another. The DBA forms may differ as well. The time it takes to process a DBA also varies.

It’s best to learn how your state or county operates.

Here’s some additional information on filing a DBA:

Good Standing

If you’re incorporated or have an LLC, you may be asked for proof that your business is in good standing. You can request a Certificate of Good Standing from the secretary of state. There are several businesses that will prepare and file the necessary forms for you. (Googling “Certificate of Good Standing” will narrow down the list.)

You Can’t Use Inc. or Corp

Remember that you can’t add Inc. or Corp. to the end of your DBA (e.g., Green Thumbs McGee’s, Inc.) if your business is not incorporated. Same goes for an LLC.

Announcing Your DBA

You may be asked by your state or county to announce your DBA by putting an ad in a local newspaper so the public can be made aware of your filing.

Payment and Filing Methods Vary

Payment and filing methods for DBA vary by state/county. Some allow you to pay by debit or credit; some require a money order or cashier’s check. Filing can be carried out online in some states while others want you to mail notarized documents to their offices. Check with your state/county office to be sure.

Consider Applying for an Employer Identification Number

To avoid using your social security number to identify your business, consider applying for an employer identification number. This helps keep your personal and business matters separate.

DBAs Need to Be Renewed

In many states, a DBA registration must be renewed every five years or so. Make a note to file for renewal before it expires so you can continue to legally operate your DBA.

Changes You Make May Impact Your DBA

If the information in your DBA filing changes (e.g., you incorporate or become an LLC, relocate your business or appoint a new partner, officer, or member), you may need to revise your DBA. Some states require businesses to file an amendment. Others require a whole new registration. Be sure to keep your DBA up to date.

Think Twice about Skipping the DBA Step

If this all seems a hassle, and you want to go ahead and use a fictitious name without registering, think again. It is illegal to operate a business under a non-registered, assumed name. Some states impose harsh penalties for failure to register a DBA name, including civil and criminal.

One way to make the DBA filing process easier is to hire a legal document filing service to help make sure that you’re following your county and state requirements perfectly. Whatever method you choose, you won’t be able to begin using your DBA until you receive a fictitious name certificate.

Final Thoughts on DBA

Your business name is more than just a name. A DBA can be a powerful part of your business strategy.

Consider the ways that a fictitious name can help you build, branch out, or even simplify the way you operate. You may choose to consult a lawyer or business consultant to help brainstorm the advantages of a DBA. And be sure they’re filed and renewed properly.

Happy naming!

This post was updated in November 2020.

Freelancer & FreshBooks Customer Heather Hudson has been a freelance writer for more than 17 years. As a small business owner, she understands the triumphs and challenges of life as an entrepreneur. And as a longtime FreshBooks customer, she’s always looking for ways to work smarter, not harder. You can learn more about her work at heatherhudson.ca.

Источник: https://www.freshbooks.com/blog/doing-business-as

DBA (Doing Business As)

DBA - Doing Business As

Comply with legal requirement

A DBA filing may be required if you're using a name other than your official name or personal name.

Set up a business bank account

In most states, you need a DBA to open a bank account under your business name.

Expand and grow your business

A DBA helps distinguish new business lines to market, manage, and grow your business.

We go beyond just filing the application

We've completed and filed over 250,000 DBAs and can file directly with the government so you don't have to — our team is dedicated to making sure the job gets done right.

We do a thorough search to check if your name is available. If it isn't, we'll help you find one that is.

Some states and counties have other requirements, publishing notice of your new name in an approved newspaper and providing proof of publication to the appropriate agency. We take care of that for you.

If talking to an attorney gives you peace of mind or, if you have specific legal questions, our network of independent attorneys is at your service.*

*Must be a Business Advisory Plan member

Preliminary name search
DBA application filing
Publication of your DBA name
Proof of publication filing
3-month trial of QuickBooks Online
14-day trial of attorney advice1

more details…

Does my LLC or corporation need a DBA?

You may be required to file a DBA application if you plan on using a name that's different than the official LLC or corporation name filed with the state. When choosing a DBA name, some states and counties will allow you to use the designation «LLC» or «Inc.» But you can't imply that your company is a different entity type than it really is.

Do I need a DBA if I'm using my personal name?

In some places you can use your full name or part of your name without having to register a DBA. Exact rules can vary by state and by county, so it's best to contact your county clerk's office.

Is there a difference between a DBA and a trademark?

Yes. The purpose of a DBA is to inform the public that you intend to conduct business within your state using a name other than your personal name. A DBA doesn't give you unlimited rights to use that name. In contrast, trademark registration can protect a business' brand name, slogan or logo beyond a single geographic area.

Can someone else register the same name?

Some states and counties will register any properly filed DBA, even if it's the same name as yours. DBA filing doesn't provide business name protection. Name protection generally comes under state and federal trademark law.

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