A “doing business as” corporation, commonly referred to as a DBA corporation, is a type of corporate structure in which a company conducts business under an assumed identity. This indicates that the company is conducting business under a name other than the corporation’s official name. Businesses that want to operate under a different name without having to establish a new legal organization employ DBA corporations.
DBA corporations are frequently utilized by lone proprietors and partnerships who want to conduct business under a name other than their own. John Smith may apply for a DBA corporation if he wanted to run his landscaping company under the name “Green Thumb Landscaping,” for instance. As a result, he can use the company name without having to establish a new legal body.
The Internal Revenue Service (IRS) must issue you an Employer Identification Number (EIN) if you are a sole proprietor with employees or future intentions to hire workers. For the purpose of taxation, your business is identified by this special identification number. Getting an EIN can be advantageous even if you don’t have employees because it can help you build credit for your company.
How Can a Firm Proprietorship Be Modified? You must submit a “doing business as” registration with your state if you are a sole proprietor or partnership that wants to convert to a DBA corporation. This procedure is submitting a form to your state government detailing the name you intend to use and the legal form your company will operate under. After submitting the registration, your firm will be permitted to utilize the DBA name. Is an LLC Required to Obtain a DUNS Number?
A nine-digit, one-of-a-kind identifying code called a DUNS number is used to identify enterprises. Businesses use this number to build credit and submit loan applications. Although establishing an LLC is not necessary to get a DUNS number, it can be useful. Because LLCs are distinct legal companies, they have their own credit reports and financial statements. This may make it simpler for your company to get credit. Is it Possible to Obtain a DUNS Number Without an LLC?
You can obtain a DUNS number even without an LLC, yes. A DUNS number can be obtained by partnerships and sole proprietorships as well. It’s crucial to remember, though, that establishing an LLC may make it simpler for your company to get credit.
In conclusion, a DBA corporation is a kind of business structure that enables an organization to conduct business using a false name. Businesses that want to operate under a different name without having to establish a new legal company may find this useful. You must submit a “doing business as” registration with your state if you are a sole proprietor or partnership that wants to convert to a DBA corporation. In addition, whether or not you have an LLC, getting an EIN and DUNS number might be advantageous for your company.