The LLC must submit a Fictitious Business Name Statement to the county clerk’s office in the county where the business is located in order to register a DBA in California. The legal name of the LLC, the DBA name, and the description of the business must all be included in the statement. The LLC may use the DBA name in its commercial dealings after the statement has been submitted and printed in a neighborhood newspaper.
Now let’s talk about whether an EIN is required for Amazon FBA. Yes, it is the answer. For tax-related reasons, Amazon demands that merchants supply an EIN or Social Security Number. To keep personal and business finances distinct and prevent identity theft, it is advised to obtain an EIN even if the business is a sole proprietorship.
One of the key problems of a DBA is that it does not offer liability protection, which is one of its disadvantages. A DBA does not establish a distinct legal organization, unlike an LLC or a corporation, and the owner is still held personally liable for the debts and responsibilities of the company. Additionally, if the name is similar to other companies in the same field, employing a DBA can cause confusion among clients and suppliers.
Last but not least, while an LLC is strongly advised, it is not necessary for Amazon FBA. A limited liability company (LLC) gives tax flexibility, liability protection, and financial segregation. Additionally, it gives the company more credibility and may draw in investors and commercial partners.
The following advice should be taken into account while choosing a company name. The name should be memorable and distinctive first. Additionally, it must to convey the company’s principles, goals, and objectives. It’s critical to confirm that the name is available and hasn’t already been trademarked or copied by another company. This procedure can be aided by a short search on the websites of the California Secretary of State’s company search tool and the United States Patent and Trademark Office.
Finally, a California LLC may operate under more than one DBA, but each name must be registered with the relevant authorities. For Amazon FBA, an EIN is necessary, and a DBA has disadvantages like no liability protection. For Amazon FBA, an LLC is not necessary, but it is advised, and selecting a company name requires significant thought and study.
You can use the Trademark Electronic Search System (TESS) on the website of the United States Patent and Trademark Office (USPTO) to look up any registered trademarks that might compete with your proposed business name in order to see if it is already in use in the US. To see if the name is accessible for use as a legal business entity name, you can also check with the Secretary of State’s office in the state where the business will be located.
A separate bank account is necessary for a DBA (Doing Business As). For accounting and tax purposes, a DBA must be separated from the LLC’s legal name because it is a fictional name that the LLC uses to carry on business. The LLC’s finances can be more effectively managed and tracked if the DBA has a separate bank account.