A business may operate under a fictional name in place of its legal name by using a “Doing Business As” (DBA). A trade name or assumed name are other names for it. Businesses that operate under a name other than the owner’s legal name are required by law to get a DBA. Therefore, you must register a DBA if your company uses a name different than your legal name.
A DBA is valid in Illinois for five years. After that, you must submit a renewal application. Up to 60 days before to the expiration of your current DBA, you may submit a renewal application. Your DBA will expire if you don’t renew it, and you’ll have to apply for a new one.
In Illinois, two firms cannot share the same DBA name. You will need to think up a new name if you want to use one that is already in use. On the website of the Illinois Secretary of State, you can determine whether a DBA name is available.
In order to maintain your company’s good standing, you must renew your DBA in Illinois. Your DBA will expire if you don’t renew it, and you’ll have to apply for a new one. Your DBA can be renewed easily. You must submit a renewal application and the renewal cost to the Illinois Secretary of State.
While having a DBA has many benefits, there are some drawbacks as well. A DBA does not give your company any legal protection, which is one of its key drawbacks. Your company name or trademark is not shielded from unauthorized usage. Another drawback is that using a DBA does not give your company an independent legal identity, so you will still be held personally responsible for any debts or legal troubles it may have.
In conclusion, you must register for a DBA if your company uses a name different than your legal name. A DBA in Illinois is valid for five years, and you must renew it to maintain the legitimacy of your company. In Illinois, two firms cannot share the same DBA name. Although having a DBA has some benefits, there are a few drawbacks to take into account.
You must decide on a business structure, register your company with the state, receive all essential licenses and permissions, create a business bank account, and file any necessary tax returns before you can launch your own company. You might also need to submit a Doing firm As (DBA) or fictitious name registration with the state or county if you intend to operate your firm under a name other than your own. Depending on your area and sector, the criteria for starting a business can change, so it’s vital to conduct your homework and seek professional advice when necessary.