Operating a business under a different name without having to establish a new legal corporation is possible by using a “doing business as” name, or DBA. A DBA is also referred to as an assumed name in Illinois. However, it’s vital to remember that in Illinois, two businesses cannot share the same DBA name. In order to prevent customer confusion, the law mandates that every company have a distinct name.
A DBA is a legal name used by a business to conduct operations that is distinct from the owner’s or the entity’s legal name. If John Smith wishes to launch a company called “Smith’s Landscaping Services,” for instance, he can use that as his DBA while continuing to do business under his own name. John would not be able to utilize that DBA name, though, if another company with that identical name already exists in the state.
It’s crucial to have a distinctive name for your company while launching in Illinois in order to stay out of trouble with the law. The name shouldn’t violate any trademarks or copyrights and shouldn’t be too similar to any other businesses in the state. Additionally, a distinctive name will benefit branding and marketing initiatives.
Moving on, which is preferable: an LLC or a single proprietorship? Both an LLC and a sole proprietorship have benefits and drawbacks. The owner of a sole proprietorship is personally responsible for any debts or legal concerns, but the setup is simpler and less expensive. Contrarily, an LLC provides limited liability protection but is more difficult to form up and necessitates additional paperwork and taxes.
On the website of the Illinois Secretary of State, you can perform a search to see whether a firm is legitimate. You can use the website’s search feature to look up a company by name or by its unique identification number. If the company is registered with the Illinois Department of Revenue for tax purposes, you can also check that.
You can also conduct a search for your own business on the website of the Illinois Secretary of State to determine its current status. Your company’s current status, including whether it is active, dissolved, or in good standing, will be displayed on the website.
Last but not least, you must complete the following fundamental steps in order to open your own business in Illinois: select a distinctive name, decide on a business structure (such as an LLC or sole proprietorship), acquire all required licenses and permits, register with the Illinois Secretary of State, and obtain an EIN from the IRS. Before launching your firm, it’s also crucial to develop a business plan and get legal and financial counsel.
In conclusion, two businesses in Illinois cannot share the same DBA name. Before creating a DBA, it is crucial to select a distinctive name to avoid any legal complications and to see if the name is already taken. Consider the benefits and drawbacks of both options when choosing between an LLC and a sole proprietorship. Use the Illinois Secretary of State’s website to determine whether a business is legitimate or to determine the status of your own firm. Consider professional counsel and take the necessary actions to launch your own business.
You must submit a “Application to Withdraw Business Name” to the Illinois Secretary of State’s office in order to cancel a DBA in that state. You will need to supply certain information about your business, including your DBA name and business address, and you can do this online or by mail. Your DBA name will be formally withdrawn when your application has been reviewed and granted, and you will no longer be permitted to use it for your company.