Businesses must adhere to specific guidelines in Massachusetts when deciding on a DBA name. The name cannot be identical to or confusingly similar to an already-used business name in the state. Additionally, it must not mislead customers or imply that the company is associated with or owned by the government. The name cannot also contain specific words, such as “corporation,” “incorporated,” or “company,” unless the company is legitimately registered as one of these categories of businesses.
A business must submit a Certificate of Business or Trade Name to the Secretary of the Commonwealth in order to register a trade name in Massachusetts. The business must fill out the form with information such as its legal name, the desired DBA name, and other identifying details. The form must be filed for a charge of $30. The DBA name can be used by the company in its operations and marketing materials once it has been approved. The creation of a limited liability company (LLC) is yet another choice available to companies in Massachusetts. An LLC is a particular kind of business form that shields its owners from liability while enabling a more adaptable management structure than a regular corporation. A business must submit Articles of Organization and pay a $500 fee to the Secretary of the Commonwealth in order to establish an LLC in Massachusetts.
However, a company can still utilize a DBA name even after creating an LLC. This is so that an LLC, which can operate under a different name, can be legally distinguished from its owners. For instance, if Smith & Jones, LLC, an LLC, wants to run a coffee shop under the name “The Daily Grind,” it can file “The Daily Grind” as a DBA name.
Businesses may find it advantageous to utilize a DBA name, but there are some drawbacks to take into account. One is that the business name is not legally protected by a DBA name. As a result, clients could become confused if another company uses the same or a similar name. Additionally, unlike when an LLC is formed, choosing a DBA name does not establish a separate legal company. As a result, the business owner is still individually responsible for any debts or legal concerns.
In conclusion, even if any name that complies with certain requirements can be used as a DBA name, it is crucial for businesses to weigh all of their alternatives as well as the potential benefits and drawbacks before deciding to use one. A Certificate of Business or Trade Name must be submitted to register a trade name in Massachusetts, whereas Articles of Organization must be submitted to create an LLC. Even if an LLC is permitted to utilize a DBA name, there are certain potential drawbacks that need to be carefully examined.
The acronym DBA stands for “doing business as.” Legally, it alludes to a name that a company uses that differs from its official name. Businesses should register their DBA with the relevant government body to guarantee compliance with local laws as it is frequently used as a trade name or an assumed identity.