An owner of a business may use a DBA in place of their real name or the name of their company. When a business owner wishes to operate under a different name for branding or marketing reasons, it is frequently employed. For instance, if John Smith owns Smith Enterprises but wants to market his goods as “Awesome Goods,” he would have to submit a DBA. As a result, he can utilize the name “Awesome Goods” lawfully without having to establish a different corporate entity.
A DBA and a limited liability company (LLC) are not the same thing. An LLC is a distinct legal entity that provides protection for the owner’s private assets in the event that the company is sued or goes out of business. On the other hand, a DBA is just a name that a business owner use to conduct business. The owner’s private assets are not given any kind of legal protection.
You can indeed register a business name even if you never use it. In fact, many companies register a number of names so they will have choices in the future when it comes to branding or marketing. It’s crucial to remember that once a name is registered, another company cannot use it in the same state or jurisdiction. Therefore, registering a domain and not using it effectively prevents someone else from using it. Which Name Should Come First in a DBA?
The legal name of the business owner or entity should be put first on the DBA application, followed by the proposed fake name. For instance, John Smith’s DBA filing might read, “John Smith, doing business as Awesome Goods,” if he wanted to use the moniker “Awesome Goods.” This helps to make sure that the company owner’s or entity’s legal identification is obvious.
In conclusion, DBA, which stands for “doing business as,” should be capitalized. It’s crucial to comprehend the distinction between an LLC and a DBA as well as the fact that other companies operating in the same state or territory are not permitted to use registered business names. The legal name of the business owner or entity should be put first on the DBA application, followed by the proposed fake name.