To DBA or NOT DBA? — That is the question
If you are going to do business in any other name than your own, you may need a DBA. But what is a DBA?
Some states call it a Fictitiouss or Trade name registration. The term DBA stands for “Doing Business As”. Sometimes businesses which are run by individuals choose to operate under a different name, other than the business owner’s name or their registered name, to fit the needs of their brand or business.
In general, there are really only two reasons why a business will need to get a DBA:
1. For sole proprietors: If you’re operating your business as a sole proprietor and not using you legal name, (example: Tiffany Smith), then you’ll need to file for a DBA.
2. For LLCs and Corporations: If you have filed to become a corporation or LLC, then you have already registered your business name. You DON’T need a DBA. BUT, if you plan on operating under the name that you filed, then you WILL need to get a DBA.
Important reasons to get your DBAs:
1. If you’re a sole proprietor, then filing for a DBA is going to be the easiest way to use a business name (name other then you personal name). You wouldn’t have to form a LLC or corporation, BUT remember as a sole proprietorship, you are open to full liability if sued. And for sole proprietors, a DBA is required in order to open a bank account in your business name.
2. For LLCs or corporations, a DBA will let you operate multiple businesses without having to form multiple LLCs or corporations. You can form one LLC and run multiple stores or services under that formation by using multiple DBA filings. This will cut down on your paperwork and your expenses making forming your businesses more affordable and who doesn’t like affordable?
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