If you are new to startups and company registrations, DBA’s may sound strange. But given it’s importance: if you are looking for more information, consider the following:
Is getting a DBA important?
Yes, it is important if you want to improve your business and create more opportunities. You can use it as a marketing tool, it can be visually appealing to customers and you can use it as a nickname for your extended services or products that you provide. As the man behind a thousand startups once said: “A DBA is one of those things that can make the life of small business owners easier and help them comply, without breaking the bank as it is quite affordable and quick”. Nagabhushanam "Bobby" Peddi (CEO at TRUiC)
How do I start my DBA filing?
The first thing you need to do is first take a look and see if the name you have chosen has not been used or is not similar to another business. The DBA name should also comply with the state requirements. Once you have checked this, you would then need to register your DBA, depending on the state that you are in. The best way to check if your name that you have chosen for your DBA is unique or not is by checking out a business name generator online and to also use the Trademark Electronic Search system.
Do I need a lawyer?
The only time that you need a lawyer is when you need to claim your entitlement or if you need to discuss agreements between parties. When filing DBA, you do not need a lawyer at all. You just need to do an online enrollment form and a physical form to provide to your county’s office, depending on the state that you live in. You can also trademark your DBA and if the laws that comply in your state that you reside in can see that one DBA is too similar to the other, it can not be used.
Can two people own the same DBA?
Legally speaking, a DBA doesn’t have owners because it is considered to be a nickname for your company and it is not the main name for your business entity. However, depending on the structure of your business and if it has two owners, then yes the DBA can be shared.
Does my DBA expire?
Your DBA can expire, but it is all down to the state that you live in and their regulations. You can always check the state guide to see the regulations for where you live. You can also renew your DBA before its expiration date.There isn’t a limit to the amount of DBA’s you can have, but it is all down to the necessity that you need for your business.
How much does a DBA cost?
The cost of getting a DBA can range from $10 to $100 dollars, depending on the state that you live in. It is advisory to check the state guide to see your regulations for where you live. If you are a sole proprietor that needs to take payments under a different name for your business, it is important and necessary for you to get a DBA. If you need the information for your DBA to be transferred to a new one, you would need to pay a small fee and complete a form. It is generally advisable to set up a bank account for your DBA, especially if you wish to attract more customers to buy from your business. Setting up a bank account creates a legitimacy that your customers can trust.
Michael Stemley, a prominent author an accountant says: “It helps you to great clarity and ensures brand safety when using a different name than what we filed during registration. Nobody wants to lose clients because of uncertainty, so spending a little bit of money after researching a resource like TRUiC or government sources makes absolute sense”.
One thing to keep in mind is that is that when you get a DBA it doesn’t mean that you have a limited liability protection. A DBA doesn’t protect your company from being sued and you have protected assets; that is only when you get limited liability protection, by becoming a LLC. It is important for you to follow the lawful procedure according to the state that you live in. It is a simple process that can be done fairly quickly and it can bring a great benefit to your company if you file a DBA now..