Do you need to file a DBA for your business?
DBA is the abbreviation for Doing Business As. In other words, it is a fictitious business name that your business can have. For example, it can be a trading name. The concept of DBA provides extra protection to consumers. For example, it can prevent unscrupulous business owners from running a business under a different name to stay away from legal troubles. When you file a DBA, you will usually be printing it in a local newspaper. Along with this, you can inform the community about who is operating the business.
DBA vs LLC
There are two situations where you will need to go ahead and file a DBA. If you run your business as a sole proprietor, and if your business name is different from your name, you will need to go ahead and file a DBA. However, there are situations where you will be able to include your name and your product as the business name and operate it, without filing for a DBA.
The second situation is where you have formed an LLC or incorporated and operate from a name that is different from the LLC name or the company name. In such situations, you should file a DBA and let people know who is behind the business.
What are the benefits of filing for a DBA?
The most prominent benefit that you can experience by filing for a DBA is that it will help you to remain in compliance with the law. For example, a DBA would allow a sole proprietor to use a standard business name, without developing a formal legal entity such as an LLC. This is one of the most cost-effective methods available for you to conduct business legally under a different name.
On the other hand, filing for a DBA will help a sole proprietor to use a business name that can help in marketing services or products as well. Moreover, it is possible to create a separate identity for running professional business ventures. However, you should also keep in mind that a DBA would not provide any protection to the name of your business, and there is still a possibility for others to run under the same name. If you do not want that to happen, you will need to look for trademark protection.
Steps to file a DBA
The steps that you should follow to file a DBA would vary from one state to another. There are some changes from county to county as well. For example, some of the states would ask you to register the DBA under the State Secretary or another state agency. Likewise, some of the states are handling it at a county level.
You will be able to get in touch with the Small Business Administration (SBA) and figure out the exact steps that you should follow to file the DBA in your state. Moreover, you will also be able to understand what you should do next, such as publishing a notice in a local newspaper and submitting proof. The exact requirements for publication could vary. This is where you may think about seeking the assistance of a specialist.
DBA vs LLC
You need to file a DBA before you conduct any business activities under the fictitious business name. For example, some jurisdictions would only allow you to file your DBA within a short time period of using the first business name. It is also important to understand that a DBA is considered a prerequisite to opening a new bank account for the business as well.
How to start LLC in Pago Pago, American Samoa
Setting up a limited liability company (LLC) in American Samoa can help you establish an independent legal entity for conducting business operations and holding cryptocurrencies such as NFTs. LLCs are available in states, territories, and insular areas such as Puerto Rico and American Samoa. Also known as Limited Liability Companies, LLCs are special entities created under state laws that provide liability protection to owners involved in business activities.