An assumed business name, commonly referred to as a DBA (Doing Business As), is the name used by a company to conduct its operations and differs from the owner’s legal name. It is employed to let companies run under different names without having to establish distinct legal entities. Sole proprietorships and partnerships frequently utilize an assumed business name, but corporations and limited liability companies (LLCs) do not.
A DBA is merely the registration of a business name and is not a legal organization. An LLC, on the other hand, is a distinct legal entity that provides its members with liability protection. The needs of the firm and its owners will determine which option is best. A DBA might be sufficient if the company is tiny and poses little risk of liability. However, an LLC might be a preferable option if the company has several owners or a high liability risk. Can I renew my DBA in Michigan online?
In Michigan, a DBA renewal can be completed online. The Michigan Department of Licensing and Regulatory Affairs website can be used to complete the process. The renewal period is every five years, and the renewal charge is $10.
A DBA and an LLC are fundamentally different from one another in that an LLC is a separate legal entity from its owner while a DBA is not. An LLC protects its members from liabilities, while a DBA enables a business to operate under a different name. Additionally, an LLC permits the sale of ownership shares and offers tax advantages.
You must first check the availability of the name on the website of the Michigan Department of Licensing and Regulatory Affairs before registering a business name online in Michigan. You can fill out the registration form and pay the registration money once the name is available. Depending on the nature of the corporate entity, different registration fees apply. The procedure can be finished in person, via mail, or online.
In conclusion, a DBA, or assumed business name, is a name used to do business that is distinct from the owner’s legal name. Partnerships and sole proprietorships frequently employ it. The requirements of the business and its owners will determine whether a DBA or an LLC is best. In Michigan, you can register a business name online, by mail, or in person. A DBA renewal can also be completed online.
Yes, a DBA (Doing Business As) registration is necessary in Michigan for companies that operate under names other than those of their legal owners. The Michigan Department of Licensing and Regulatory Affairs (LARA) handles this registration.