Do you have a business and would rather prefer trading under a different name? Are you planning on expanding your business by offering a new brand, or new products and services? Have you not yet registered your business as a sole proprietorship or partnership and you would rather prefer to operate under a name other than the personal name that you had already chosen for your business?
If you answered yes, then you should consider filing a DBA and familiarizing yourself with the process will be most beneficially.
How to Set Up a DBA?
Filing a DBA is as easy as one, two three. Step one-select the state, step two – complete the DBA name search and finally step three – register your DBA in your state.
How many DBAs can you have?
Businesses can choose to have as many DBAs as what they can afford and keep track of. Keeping in mind that each DBA comes with its own expenses and paperwork.
Why Should I File a DBA?
Whether the business operates as a sole proprietorship, partnership, LLC or a corporation, operating as a DBA makes it easier for the business to create or build a particular brand. It also helps if the business plans to offer multiple and distinct products and services. If the business plans to offer different products or services in the future, then there is also the option to create a separate DBA for each of those business ventures.
What are the Costs Involved in Filing a DBA?
Overall the costs are rather affordable, however, the costs do vary from state to state. Businesses can pay between $10 and $100.
Sole Proprietorships, Partnerships, LLC’s and Corporations, What Do You Need to Know?
If the business operates as a sole proprietorship or a partnership, opting to file a DBA can make matters so much easier when it comes to market the business, which will help business owners attract more customers. A DBA allows businesses more flexibility, as you can operate under a business name that is more applicable to the services or products you plan to provide. Customers will then be able to identify your products or services more easily, all just by the name that you choose. A DBA helps your business appear more professional, trustworthy and credible, creating a lasting and memorable impression to customers and potential customers. Legally speaking, businesses always need to register the name they intend to use, which is not necessarily their legal name. Businesses are then also required to register that name so that they can open a business account for your DBA or if you would like to add your business to certain directories. There are also some states the require partnerships to create a DBA. Operating as a sole proprietorship means that the business will still be held financially responsible for any debts that the business should incur.
When compared to LLC’s or corporations, DBA’s are not considered as a separate entity. For this reason, a DBA does not provide any additional liability protection. If the business operates as an LLC or a corporation and utilizes a DBA, the business as a whole will still be liable for the DBA operating as part of it.
Why Should I Opt For a DBA Instead of a Legal Name Change?
What is the purpose of opting for a legal name change first? Is the intention of the business owner to rebrand an existing company, by offering new services or products? Then, choosing to file the business as a DBA is a better business decision than changing the businesses legal name. More importantly, filing for a DBA is a much simpler process than filing for a legal business change
The reasons for opting to file a DBA are endless. There is the branding benefit, coming across as more professional and also from a practical perspective, there are the business bank account requirements. For more information and to start the process, then click here.