Businesses operating in Minnesota under names other than their legal names must register their assumed names with the Secretary of State’s Office. All sole proprietorships, partnerships, LLCs, corporations, and other forms of company operating in Minnesota under an assumed name are subject to this rule. Penalties and legal repercussions may occur from failing to register an assumed name. An assumed business name is what?
A business may perform its operations under a name other than its legal name, known as a “assumed name.” For instance, if a business owner’s legal name is “John Smith,” but he or she conducts business under the name “John Smith Consulting,” that person would need to register “John Smith Consulting” with the Secretary of State’s Office as an assumed name. This would enable him to use that name instead of his legal name while conducting business, opening bank accounts, and signing contracts.
An assumed name is a name that a company operates under that isn’t the same as its legal name. A name that is not the business owner’s legal name is referred to as a “assumed name” in this context. A DBA name is another term for this name.
A DBA is a name that a company employs to conduct business; it is not a specific kind of corporate entity. On the other hand, an LLC is a sort of corporate entity that shields its owners from liabilities. When a business owner opts to use a DBA, they are still personally liable for the debts and liabilities of the company. Contrarily, when a company is organized as an LLC, the owners are given limited liability protection, which means that their private property is often shielded from the debts and obligations of the company.
A business may conduct its operations under a name other than its legal name, which is known as an assumed name. Businesses operating in Minnesota under names other than their legal names must register their assumed names with the Secretary of State’s Office. Although a DBA is not a specific kind of business entity, it is a name that a company employs to conduct business. An LLC, on the other hand, is a sort of corporate entity that offers its owners limited liability protection. Business owners can guarantee they abide by Minnesota’s laws and regulations and safeguard their financial assets by being aware of the notion of assumed names.