A trade name used by a person, partnership, or company to carry on business under a name other than their legal name is known as “doing business as,” or “DBA.” A DBA gives a company the option to conduct operations under a different name, which can be advantageous for marketing and branding initiatives. But many individuals enquire as to whether a DBA is capable of signing a contract.
The quick answer is that a DBA can sign contracts. A DBA is a moniker or alias for the business owner rather than a distinct legal organization. This indicates that the DBA owner is still liable for all business-related decisions and obligations, including contracts. The owner of the DBA will sign contracts using the DBA name, but they are still held legally accountable for upholding their end of the bargain.
A fictitious business name (FBN) statement must be filed with the county clerk’s office in the county where the business operates in order to receive a DBA certificate. The DBA name, the owner’s legal name, and the business address must all be listed on the FBN statement. The business owner can legally use the DBA name to conduct business once the FBN statement has been submitted and authorized.
Many people are curious as to whether LegalZoom can help with getting a DBA certificate. Yes, LegalZoom can assist with submitting the required papers to get a DBA certificate. A DBA service provided by LegalZoom entails name availability research, the creation and submission of the FBN statement, and publication of the DBA in a local newspaper, which is necessary in some states.
By state and county, the processing time for a DBA certificate varies. The certificate may be obtained in some circumstances the same day the FBN statement is submitted. In other circumstances, processing and approval of the certificate may take several weeks. To find out how long it will take to process a DBA certificate, it is crucial to contact the county clerk’s office where the business is located.
Finally, it’s critical to comprehend the distinction between an LLC and a DBA. A DBA is only a company’s trade name, but an LLC is a separate legal entity from its owners. A DBA does not offer liability protection for its owners like an LLC does. A business owner may want to think about creating an LLC rather to just employing a DBA if they want to protect their personal assets from company obligations.
In conclusion, even though a DBA can sign contracts, the business owner is still held accountable for upholding their conditions. The business owner must submit an FBN statement to the county clerk’s office in order to receive a DBA certificate. A DBA certificate can be obtained with the help of LegalZoom, and the processing time varies by state and county. Understanding the distinction between an LLC and a DBA is crucial since an LLC offers its owners greater liability protection.