In Michigan, assuming a company name is a rather simple procedure that may be finished online. It’s crucial to comprehend the distinction between a company name and a legal entity before you start. A legal structure, such as a limited liability company (LLC) or corporation, offers legal protection for your personal assets whereas a business name is merely the moniker under which you will conduct business. Do I Require a DBA in Michigan?
You must submit a Doing Business As (DBA) registration form to the Michigan Department of Licensing and Regulatory Affairs (LARA) if you intend to run your business under a name other than your own. To use a name other than their legal name, companies, partnerships, and sole proprietorships must follow certain rules.
In Michigan, a DBA can be registered for $10, and the registration is good for five years. You can renew your registration online for an additional $10 if you need to. Which is preferable, an LLC or a DBA?
Your business objectives and the degree of liability protection you require will determine whether you should create an LLC rather than conduct business under a DBA. An LLC offers greater managerial and tax freedom as well as personal liability protection for the owners. However, registering an LLC involves more paperwork and may cost more money than doing business under a DBA. How Can I Update My Assumed Name in Michigan? Through the LARA website, you can update your assumed name in Michigan. You must renew your registration every five years, and the renewal charge is $10. If you don’t renew your registration, other companies will be able to use your assumed name.
Finally, adopting a business name in Michigan is a straightforward procedure that calls for submitting a DBA registration with LARA. An assumed name can be registered and renewed for $10, and the registration is good for five years. Your business objectives and the degree of liability protection you need will determine whether you should operate as an LLC or a DBA. In order to keep your assumed name, it’s crucial to renew your registration every five years.
A business that employs a name other than its legal name is said to be operating under an assumed name, which is also referred to as a fake name or doing business as (DBA). It is frequently employed when a company wishes to operate under more than one name or when it wants to use a name that is more memorable or descriptive than its legal name. Businesses in Michigan must register their assumed names with the government in order to use them.