A DBA (doing business as) registration is one way to register your firm in Utah. This gives you the option to run your company under a different name than your own, which is advantageous for branding reasons. Filing a DBA does have certain drawbacks, though. For instance, a DBA does not shield your company from liability. If your company is sued, the plaintiff may also pursue your personal assets.
Whether DBAs must submit a separate tax return is yet another frequent query regarding DBAs. No, is the response. A DBA doesn’t file its own tax return because it isn’t a distinct legal entity. Instead, your personal tax return is used to declare all DBA earnings and expenses.
So, is getting a DBA worthwhile? That is dependent upon your objectives and business. A DBA can be a smart move if you intend to conduct business under a different name than your own. However, you might want to think about creating a different legal structure, like an LLC or corporation, if you’re searching for liability protection.
Finally, there are a few procedures you must follow if you need to close your business in Utah. You must first submit Articles of Dissolution to the state. Any licenses and permits you got to run your business must likewise be canceled. You’ll also need to take care of any unpaid debts or commitments your company may have.
In conclusion, registering with the state is a requirement if you’re opening a business in Utah. Although a DBA can be useful for conducting business under another name, it does not offer liability protection. If you need to shut down your firm, make sure you take the proper actions to dissolve it and revoke all licenses and permissions.