Understanding Registered Trade Names and DBA Registration in Maryland

You might be asking what a registered trade name is and how to set up a DBA if you’re launching a business in Maryland. We’ll discuss these ideas in this article and provide some associated information.

A registered trade name is the name under which a company conducts business and operates. The phrase “doing business as” (DBA) is another moniker for it. If John Smith operates a bakery called “John’s Bakery,” for instance, but wants to use a different name for business purposes, he can file for a trade name such as “Sweet Treats Bakery.” As a result, he can operate under that name without creating a new legal corporation.

You must submit a trade name application to the Maryland Department of Assessments and Taxation in order to register a trade name there. You’ll need to supply some basic information about your company, including its name, address, and the name you intend to use for operations. Your trade name will be valid for five years after the application has been submitted, for a charge.

In Maryland, it is legal to use more than one trade name. For each name you intend to use, a new trade name application must be submitted. However, keep in mind that employing many trade names may weaken your brand’s identity and confuse buyers. Generally speaking, it’s preferable to stay with one trade name and create a powerful brand around it.

What exactly is DBA Registration? The procedure for registering a trade name with the state is known as DBA registration. It’s crucial to understand that filing for a trade name registration does not turn it into a distinct legal company. Instead, it merely permits you to give your company a different name. You must submit separate documentation to the state if you want to establish a different legal entity, such as an LLC or corporation.

A limited liability corporation (LLC) created in Maryland will be subject to pass-through federal taxation. This means that the LLC’s revenues and losses are transferred to its owners, who are referred to as members, and are then taxed on their individual income tax returns. Although Maryland does not have a specific state-level LLC tax, other taxes, such as sales taxes or employment taxes, may apply to LLCs.

To sum up, learning about registered trade names and DBA registration is a crucial step in launching a business in Maryland. You can run your company under a different name without creating a new legal organization by registering a trade name. If you’re thinking about utilizing various trade names, bear in mind that this could confuse customers and weaken the uniqueness of your brand. Additionally, if you create an LLC, it will be taxed for federal tax purposes in Maryland as a pass-through corporation.