An assumed name is a name used by a business that is not the same as the legal name of the organization or the owner. A “doing business as” name, or DBA name, is another term for an assumed name in Michigan. This name is used to describe a company’s offerings to the general public.
In order to utilize a business name in Michigan, you must first check to see if it is currently being used by another company. The Michigan Department of Licensing and Regulatory Affairs (LARA) offers an online platform for this. You can submit a Certificate of Assumed Name to LARA once you’ve made sure the name is available. This certificate is good for five years and needs to be updated at that time.
A DBA name and an assumed name are frequently confused by many individuals. However, there is no distinction between the two in Michigan. Both phrases refer to a name that a company uses in addition to its legal name, which is the same thing. A business can use an assumed name to conduct operations under a different name without having to establish a new legal entity.
A company may use several assumed names in Michigan. This can be useful if a company sells several goods or services under many trade names. A unique Certificate of Assumed Name must be filed for each name, and each assumed name must be registered individually.
Finally, it’s crucial to remember that not all companies in Michigan are required to register under a DBA. It is not necessary for sole proprietors to register for an assumed name if they use their legal name as their company name. However, a sole proprietor must apply for a Certificate of Assumed Name if they wish to use a different name. If a corporation, an LLC, or a partnership wants to conduct business using a name different than their legal name, they must file for an assumed name.
A business may use an assumed name in addition to its legal name, which is also referred to as a DBA name. Businesses in Michigan that want to operate under a different name must apply for a Certificate of Assumed Name. This certificate needs to be renewed after its five-year expiration date. Multiple assumed names are permitted for businesses, but each name needs to be registered separately. Unless they choose to use a different name, sole proprietors who use their legal name as their business name do not need to apply for an assumed name.