"Doing business as" - An introduction to filing a DBA
June 11, 2020 (Investorideas.com Newswire)
Here is a useful introduction to filing a DBA for your business:
What else do I need to think of first?
"Doing business as" is a phrase that you need to remember when coming up with a unique name for your business. Think of it as branding yourself as a nickname that needs to be catchy and appealing to your customer's. However, you need to consider the fact that the name legally cannot be similar to another name that a different business has, otherwise you will have to legally stop using it.
You can figure out a name using a name generator and the U.S trademark electronic system in order to guarantee your name. You have to keep in mind that a DBA can have an Inc at the end, only if the company that has applied is a corporate company.
How do I file a DBA?
First you need to double check that the name that you have chosen isn't taken or too similar to another business in the state that you live in. Second, you need to register your DBA either with your local government or county government. You can check out the state guide to see what is required for the state that you live in. In order to set up a DBA, the price can range between 10-100 dollars.
You should also get a business account for your DBA, since it is beneficial for your business to offer a legitimate payment method that is under the DBA that you have given to the customers. In order to open a business bank account for your DBA, you would need to provide the documentation for DBA and EIN documentation.
Would I be taxed?
You would not need to be taxed, since the DBA you have chosen for your company isn't a business entity. However, you need to take into consideration that your tax liability for your DBA is all dependent on the incomes that you'll receive. Not only that, but if there is a loss for your company in regards to finance, it'll also be calculated towards your tax liability.
Why Should I file a DBA?
If you want to consider an alternative name for your business, then by law you are required to register for a DBA. The only county's that do not accept a DBA are New Mexico, South Carolina and Kansas. You would need to file a DBA with either your state or county clerk's office, depending on the state that you live in. There are also certain states that would require you to register for your DBA more than once, for there are different levels of government that need to approve it. This is also down to the type of business you have; whether that is sole proprietorship, a small business or a corporation.
You have to bear in mind that most states don't allow you to transfer the DBA, but if you do wish to change the contact information, you would need to pay a fee and fill out a form. A DBA can also expire after a long time, but it can also be renewed. When it comes to the expiry itself, this is all dependent on the state that you live in.
How many DBAs can I have?
There is not a law that stops you from having too many DBAs, however it is advisory for you not to have too many DBAs, simply because it creates a clearer structure for your business. Plus, each time you choose to add another DBA, you would still need to go through the paperwork and expenses in order to create one.
So is it worth it?
Yes, it is worth filing and getting a DBA if you want to improve your business, add regulations to customers and accept payments for extended services or products.
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