The acronym DBA stands for “doing business as.” It is a legal word used to describe a company that conducts business under a name other than the owner’s legal name. If John Smith decides to run a company under the name “John’s Pizza,” for instance, he will need to file a DBA in order to do so lawfully. In other words, a DBA is only a method of letting the public and the government know who is responsible for a specific business name. Do I require a registered agent in Massachusetts for my LLC?
You must have a registered agent if you’re forming an LLC in Massachusetts. A registered agent is a person or organization chosen to receive significant legal documents on your company’s behalf, including lawsuits or subpoenas. The registered agent must be readily accessible during regular business hours and have a physical address in Massachusetts.
Depending on the sort of LLC you’re forming and the services you require, the cost of registering an LLC in Massachusetts varies. A domestic LLC must pay a $500 basic filing fee, whereas a foreign LLC must pay $550. Additional fees could also be required for services like name reservations and expedited processing.
If you conduct business in Massachusetts under a name other than your legal name or the name of your LLC, you must register a DBA. A DBA in Massachusetts must be registered for $50 a year, and registration must be renewed every five years. Remember that registering a DBA does not give your company any legal protection; therefore, for additional security, you might want to think about creating an LLC or another kind of legal structure.
The simplest and most typical sort of business structure is a sole proprietorship. It is a sole proprietorship owned and run by one individual. A sole proprietorship does not need to formally register with the state or file any documents, but you might need to get licenses or permits from your local government. In a sole proprietorship, the firm owner is individually liable for all obligations and liabilities.
A DBA, however, is not a distinct legal entity from the owner. Simply put, it permits the proprietor to use a business name that differs from their given name. A DBA does not give the business owner any legal protection; they are still individually responsible for all debts and liabilities of the company.
In conclusion, a DBA and a sole proprietorship are two distinct legal entities. A DBA is only a technique to conduct business using a different name, but a sole proprietorship is a specific kind of corporate structure. Prior to making a decision, it’s critical to take your business objectives, the level of liability protection you require, and local laws into account.