While starting a business is an exciting endeavor, there are hazards involved. The potential loss of personal assets in the case of a business failure or legal action is one of the largest dangers entrepreneurs face. A DBA (Doing Business As) can help in this situation. This essay will examine the function of a DBA in safeguarding your assets and address other pertinent issues.
Let’s start by defining what a DBA is. The legal term “DBA” describes the trade name, assumed name, or fictitious name used by a company. It permits a company to conduct operations under a name different from its legal name. For instance, if John Smith runs a company called Smith Enterprises and wants to run a restaurant under the name “John’s Burgers,” he would need to apply for a DBA.
Let’s address the first pertinent query now: What qualifies as an LLC? A legal framework known as an LLC (Limited liabilities Company) shields its owners from personal liabilities. In the event of a lawsuit or corporate failure, the LLC owners’ personal assets are thus safeguarded. It’s crucial to remember that an LLC does not shield the company’s assets from being taken. A DBA can help in this situation.
So, does a DBA safeguard your property? The quick response is no. A DBA does not give your company or personal assets any legal protection. It merely enables you to conduct business under another name. However, having a DBA has additional advantages. It might, for instance, assist your company in creating a distinctive brand and facilitate the marketing of your goods or services.
Let’s respond to the second relevant query now: Can a business name be used in contracts? If you have a DBA, you are able to sign contracts under a business name. You must use both the legal name of your company and the DBA name when you sign a contract if you want it to be enforceable.
Let’s address the third connected question now. How can I free-trademark a name? Unfortunately, there is no such thing as a free trademark. A filing fee for trademark registration must be paid; this fee can range from $225 to $400 per class of products or services. However, there are some free tools you may use to look out existing trademarks and prevent possible infringement.
In conclusion, a DBA does not give your assets legal protection. However, it can also offer other advantages like easier marketing and brand recognition. Consider creating an LLC or another type of legal entity if you wish to safeguard both your business and personal assets legally. To make sure you are doing the right actions to protect your company, it is also crucial to seek legal advice.
You must go to the website of the Small Business Administration or the Secretary of State’s office in your state to register your business name online. From there, you can look up the online registration procedure for a fictitious name registration or a Doing Business As (DBA) name. Depending on your state and the kind of business you run, the particular criteria and fees could change. Before registering your business name, it is crucial to do some research and understand the rules and legislation that apply in your state.