How To Set Up A DBA In Massachusetts

How To Set Up A Dba

There are no limits to the number of DBAs or assumed names you can use. A DBA can be an excellent way to dip your toe in the water and try a new business or product idea without going all in. If you are using a DBA as part of a sole proprietorship or partnership, don’t wait too long after you have proof of concept to move to the next step. Whether that meansstarting your LLCorincorporating your DBA, building a strong business starts with protecting yourself legally. Other times, LLC owners may want to differentiate their products or service offerings.

How To Set Up A Dba

Again, these reasons will vary in relevance to your company depending on your legal business entity type, what kind of business you’re in, and your growth strategies. We strongly advise speaking with your accountant or attorney to determine whether a DBA registration is the right choice for your business. Following are some of the most popular reasons why businesses use a DBA name. Note that these reasons often vary depending on business type.

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Be sure to do so within the first 30 days of registering the DBA. An LLC, corporation, limited partnership or other business entity that’s doing business under a name other than the official business name. DBAs don’t require insurance because DBAs aren’t a business entity. However, the business entity that the DBA is under will need protection from losses that can happen naturally in the course of business, such as property damage or lawsuits. UpCounsel is an interactive online service that makes it faster and easier for businesses to find and hire legal help solely based on their preferences.

  • This is especially important to emphasize for business owners who choose to operate as a Sole Proprietor or Partnership.
  • A DBA – referred to as a Certificate of Assumed Name in the state of New York – must be filed through the New York Department of State for registered entities to legally trade under a new assumed name.
  • The underlying business entity is responsible for all business licenses.
  • If you’re having problems deciding on a name or even thinking of a name, check out Incfile’s free Business Name Generator.
  • A DBA (“doing business as”) name is a business’s operating name, not its legal name.
  • In general, you’ll want to ensure that you business name is unique, memorable and is easy to search.

The underlying legal entity is responsible for the business life of the DBA, including taxation, business permits and licenses, insurance, and so forth. You use the underlying legal entity’s tax identification numbers to open a bank account in the DBA name. In general, sole proprietors or general partnerships who want to call their companies by a name other than their own names need to get a DBA. Most states allow some deviation, as long as the owner’s last name is included in the company name. 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.

Can a DBA have an LLC?

Depending on the state you may be able to file with a local or county clerk’s office, with a state agency, or both. Thus, be sure to verify all the relevant local governing authorities for DBA filings in the states you are, or will be, doing business in. Then confirm all the DBA filing requirements for your business or entity type. Business owners looking to limit their legal liability may wish to consider using an LLC or a corporation instead of a sole proprietorship. An LLC is its own legal entity and protects individual personal accounts from being considered assets of the company.

How To Set Up A Dba

Registering a DBA allows businesses to operate multiple firms under one ownership, without having to form a separate business entity each time they expand. If there’s any hope that your original venture will want to expand into multiple websites, stores, services, restaurants and so on, you’ll want to register each under a separate DBA name. Owners of LLCs or corporations have certain legal protections such as safeguarding the owner’s personal assets if the business is sued. But if you operate your How To Set Up A Dba business under a name other than what’s on your incorporation documents and didn’t file, those legal protections won’t hold. So, if you’re incorporated as John’s Cosmetics Inc. and sign a contract with a client as John’s Skincare Solutions, without registering the latter as your DBA, then that contract won’t hold up. Once you have your DBA name selected, the next step is to get it registered. For example, if you’re operating in Los Angeles, California, you’ll want to visit the LA County website.

Reserving a DBA Name

In most cases, a DBA is only required if you are using a business name other than your legal business name. There are some states that require one for certain business entity types. For instance, New York requires partnerships to have a DBA.

  • Your bank will most likely need your DBA paperwork and EIN documentation from the main business entity when you open your account.
  • A company uses a doing business as when the name it operates under is different from its legal, registered name.
  • Corporations, LLCs, LLPs, sole proprietorships and general partnerships must file a DBA – in this case, an Assumed Business Name – to trade under a fictitious name.
  • Jane Haskins practiced law for 20 years, representing small businesses in startup, dissolution, business transactions and litigation.
  • Regardless of what type of business you own, you will want to make sure your personal assets are separated from your business.

This is usually in the form of a good standing certificate that you can request from the secretary of state. Enabling tax and accounting professionals and businesses of all sizes drive productivity, navigate change, and deliver better outcomes. With workflows optimized by technology and guided by deep domain expertise, we help organizations grow, manage, and protect their businesses and their client’s businesses. A DBA can only have Inc. in the name if the business entity the DBA is attached to is a corporation.

How do I file an Assumed Business Name (DBA)?

Planning for every aspect of your business and having expert resources available is key to success. This guide will show you the steps to follow and the resources at your disposal. Partnerships may register with the Department of State under Part II of Chapter 620, F.S. However, a partnership should file under the partnership https://quickbooks-payroll.org/ act or the Fictitious Name Registration Act. The Division must accept any fictitious name registration that meets the statutory filing requirements. The name you register must be advertised at least once in a newspaper that is located within the county where your principal place of business is located .

Can I deposit check with DBA name?

Your bank may require proof of registration before it lets you use it for your accounts. Experian recommends you put both your name and your DBA name on your business account. That way, there's no problem whether the checks are made out to Jane Doe or Jane's House of Fashion.

Also, DBAs often cannot be used for legal paperwork, which can result in some pretty annoying confusion when you’re trying to seal a business deal or fill out legal documents. If your desired DBA name is currently in use you’ll need to choose a new, unique name. In addition you will want to check your state’s secretary of state business database to ensure that there are not any LLCs or Corporations using a similar name that could create confusion. The first renewal notice will be sent at the beginning of the month in which the trade name can be renewed.

From the course: First Five Things You Have to Do to Start a Business as a Creator

In California, you must run ads for your new fictitious business name within 30 days of registration. As requirements change from state to state, you should always confirm what’s necessary before DBA form submission. Check with the County Clerk’s office in your location to gain access to the specific forms and filing fees. It is important to note that setting up a DBA isn’t the same as registering an LLC or corporation. A DBA may be enough to operate under an assumed name legally. However, there are certain perks and protections that it cannot provide.

You can use your Social Security number when you file your taxes. However, sometimes banks require a business to have an EIN to open a business bank account. Having an EIN and a business bank account establishes legitimacy for your business. If you plan on operating your business under a name that is different from your official legal name, you will be required to file for a DBA. Depending on the city, county and state of your business, you will file through the state or local jurisdiction/county.

Disadvantages of a DBA for a Sole Proprietorship

The rules for DBAs vary from state to state and by the type of business entity. Let’s look at how DBAs work for different business entities. The company name registered at formation or the owners’ names become the legal, registered name of the company. DBAs are like the different versions of given names used by all sorts of folks, from presidents to billionaires (Microsoft’s Bill Gates is really a William). But unlike a James who calls himself Jim or a Katherine who goes by Kate, business owners have to jump through some legal hoops before they can use a different name for their company.

How To Set Up A Dba

Businesses must also submit tax returns to their state, and some states may require quarterly or annual tax returns. DBA costs vary by state, county, city and business structure, but in general, registering a DBA comes with paperwork and filing fees anywhere from $10 to $100. Depending on your state, county, city and business structure, you’ll either go to your county clerk’s office to file the paperwork to apply for a DBA or you’ll do so with your state government. If you register a DBA without first forming some type of legal entity, your state will automatically recognize your business as a sole proprietorship. Also keep in mind that if you register a DBA without first forming some type of legal entity, your state will automatically recognize your business as a sole proprietorship.

The deal falls through with one tent company, so they call another one, only to find that it’s owned by the same person. In fact, that same person owns all the tent rental companies in a certain mile radius. If the paperwork and filing process seems overwhelming, you can contact a business lawyer to complete all the necessary filings to secure your DBA name. Reputable business lawyers are listed by the American Bar Association. DBA stands for “doing business as,” referring to the name you want the public to call your company.

This is especially true if you plan on selling products on your website to people nationwide. For example, when Sally Spade was researching her DBA, she discovered that there was an exotic dancing club in Nevada called Sally Spade’s Sweeties. Keep in mind that just because another business is using the same name as yours doesn’t mean that you can’t use it. If the other business is located far away, or is offering different products or services, you still may be able to use the name. Your state or county may require you to update your DBA registration to maintain it after a certain amount of time.

Filing a DBA: Key points to a successful filing

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  • Sole proprietorships or general partnerships are liable to file a DBA.
  • She has written hundreds of articles on legal, intellectual property and tax issues affecting small businesses.
  • It is against state law to conduct any business using an assumed name that has not been registered.
  • There is no difference between a DBA, fictitious name, or trade name.
  • An LLC is a businessentity, while a DBA is just anamefor a business.
  • To that end, while it may offer you privacy or greater marketing power, it does not offer you much in the way of legal protection.

A DBA (“doing business as”) name is a business’s operating name, not its legal name. Just keep in mind that a DBA is not a separate legal entity from your business. Registration of a fictitious name is not required to form a corporation, limited liability company or limited partnership. Businesses may trade under a name different from the entity’s original name or in case of sole proprietorships and partnerships, the owner’s name. Corporations, LLCs, LLPs, sole proprietorships and general partnerships must file a DBA – in this case, an Assumed Business Name – to trade under a fictitious name. A DBA is not a legal entity, but you will have to file taxes whether you filed for a DBA or not.

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