You might be asking if you have to file a DBA if you are beginning a business in Michigan. The quick answer is that it depends on the name you intend to use and the way your organization is set up. Let’s look at this more.
Let’s start by defining what a DBA is. The acronym DBA stands for “doing business as.” A business using a name other than its legal name is referred to as doing so legally. You would need to submit a DBA if, for instance, your company is called John Smith Enterprises but you intend to use the name John’s Pizza.
If you plan to use a name other than your own while operating as a sole proprietorship or partnership in Michigan, you must file a DBA with the county clerk where your firm is situated. However, you are exempt from filing a DBA if you are doing business as a corporation or limited liability company (LLC). Instead, you can register an assumed name with the Michigan Department of Licensing and Regulatory Affairs or use your legal name to conduct business. Which is preferable, an LLC or a DBA?
There are various considerations when deciding whether to operate under a DBA or create an LLC. Although a DBA is a less complicated and expensive choice, it does not offer an LLC the same amount of liability protection. If your business is a sole proprietorship or partnership, you are legally responsible for all debts and liabilities. You can protect your personal assets from business obligations by incorporating an LLC, which establishes a distinct legal organization.
A DBA is a fictional name used by a company to carry on business under a name other than its legal name that is recognized by the law. A trade name, assumed name, or fictitious business name are other names for it. How Much Does it Cost in Michigan to Register a Business Name?
County-specific fees apply to the registration of business names in Michigan. The cost might be as little as $10 in some counties and as much as $50 in others. Contact the county clerk’s office in your area to learn the cost in your county.
You must complete a form issued by your county clerk’s office in order to file a DBA in Michigan. You will need to fill out the form by entering your company name, address, and other necessary details. Additionally, you’ll need to pay the filing fee and present documentation of your local newspaper publication. You can get more specific instructions and help filling out the form from the county clerk’s office.
In conclusion, your business structure and the name you intend to employ will determine whether you need to establish a DBA in Michigan. You must file a DBA if you are a sole proprietorship or partnership and intend to use a name other than your own. However, you are exempt from filing a DBA if you are doing business as an LLC or corporation. The cost varies by county in Michigan to register a business name, and the procedure include filling out a form that is provided by your county clerk’s office.