There are many justifications for choosing to conduct business under a DBA. For instance, a lone proprietor may use a DBA to sound more professional or to set their firm apart from their own name. Similar to this, a business may utilize a DBA to rename itself or enter a new market. Whatever the motivation, it’s crucial to understand that a DBA does not establish the business owner as a different legal entity.
A DBA name in this context is protected? The solution is not obvious. A DBA registration does offer some protection, but it is not equivalent to trademark protection. A DBA only offers defense against other businesses operating under the same name in the same region. You must register your name as a trademark if you want more comprehensive protection.
Can I register a trademark without a company? Yes, to answer briefly. To apply for a trademark, your firm does not need to be registered. However, you must use the name for commercial purposes. The name must be used to market products or services, so to speak. Furthermore, a name that is too similar to an already registered trademark cannot be trademarked.
Are DBAs subject to taxation in light of this? Yes, just like any other business, a DBA is required to pay taxes on its income. However, because a DBA is not a distinct legal business, the owner’s personal tax return is where the revenue is declared. This implies that both income tax and self-employment tax are the owner’s responsibility.
If I have an LLC, do I need a business license? Depending on where you reside and the kind of business you run, the answer to this question will vary. You might require a license or permit to run your business in some states. Some industries also have unique licensing requirements. You still need to adhere to all applicable licensing requirements even if your business is an LLC.
To sum up, a DBA is a mechanism for companies to conduct business under a name other than their legal name. Although it offers some protection, it does not have the same level of legal standing as trademark protection. A DBA does not establish a distinct legal entity, and the owner is still liable for income taxes. The type of business you have and where you live will determine whether or not you require a business license.