You might have questioned when your Doing firm As (DBA) registration expires if you own a firm in Pennsylvania. DBA registration is actually referred to as the Fictitious Name Registration in Pennsylvania. This article will examine Pennsylvania’s DBA expiration regulations as well as related issues. In Pennsylvania, do DBA registrations expire?
Yes, fictitious name registrations in Pennsylvania do expire five years after the date of registration, to give the quick response. The Pennsylvania Department of State will send you a renewal notification 60 days before the registration expires, even though it doesn’t renew automatically. If you don’t renew your registration, another person may do so under your name.
In Pennsylvania, an LLC may indeed use a DBA. Similar to registering any other business company, registration is required. The Pennsylvania Department of State must receive the Fictitious Name Registration form that you have filled out and submitted. You should take into account the tax repercussions of using a DBA as an LLC owner. Since a DBA doesn’t establish a separate legal company, any profits or losses it generates must be recorded on your LLC’s tax return.
A business entity that employs a name other than its legal name is said to be using a fake name. A DBA, trade name, or assumed name are additional names for this one. Businesses use fictional names for a number of purposes, including to build a brand, enter new markets, or set themselves apart from rivals. Most states, including Pennsylvania, have regulations requiring the registration of fictitious names. Can Two Companies Use the Same DBA Name?
No, two firms in Pennsylvania cannot share the same DBA name. To make sure your name is original, the state’s registration procedure includes a search of names already in use. You will need to select an alternative name if the company you intend to use has already registered it. Remember that if you use a DBA, you are not creating a legal entity like an LLC or corporation. Instead, you’re securing a name that you intend to utilize for business purposes.
The biggest drawback of using a DBA is that it offers no legal defense for your company. Since a DBA doesn’t establish a distinct legal organization, as was already noted, your personal assets are still at danger if your firm is sued. Additionally, utilizing a DBA may make it more difficult to get business credit or secure funding. Businesses having a distinct legal framework are more appealing to creditors and lenders.
In conclusion, DBA registrations do expire in Pennsylvania, but you will be notified to renew your registration 60 days in advance. DBAs are another option for LLCs, but they should be aware of the tax repercussions. False names are exclusive to the company that registered them, and no two companies may share the same name. Last but not least, utilizing a DBA may have some drawbacks, such as a lack of legal protection and possibly having trouble securing finance.
An LLC is taxed in Pennsylvania as a pass-through entity, which means that its members are responsible for reporting the LLC’s earnings and losses on their individual tax returns. Although the LLC does not pay federal income taxes directly, Pennsylvania state law requires it to file an informational tax return with the IRS and pay state taxes and fees.