The name you choose for your new company should appropriately reflect your brand and make you stand out in your field. Many business owners choose to register a DBA, or “Doing Business As,” which enables them to conduct business under a name other than their official business name. But how can you find out if your preferred DBA is accessible? And what are the advantages and disadvantages of an LLC over a DBA? We’ll look into the solutions to these issues and more in this essay.
The first step is to conduct a search of your state’s business name database to see if your DBA is accessible. This will reveal whether any competing companies are using the name you want to use. You could also want to conduct a more thorough internet search to discover if any other businesses or people are making use of the same name in a related field. You’ll have to think of an other choice if the name you want is already taken.
The following action is to reserve your desired DBA with your state if it is already available. You will then have the only right to use the name for a predetermined amount of time (often six months). You might have to submit a document and make a payment to reserve your DBA, depending on the rules in your state. You’ll have to register your DBA permanently after the reservation term expires unless you choose to renew it.
It’s important to remember that you are not required to employ a DBA just because you reserve one. You can just let the reservation expire and pick a new name if you decide to change the direction of your branding. However, it could be expensive and confusing for customers to change your name if you’ve already begun using your DBA in marketing materials, signage, or other business assets.
So, which should your company use—a DBA or an LLC? Your particular demands and objectives will determine the answer. Generally speaking, a DBA is simpler and less expensive to set up than an LLC, and it enables you to conduct business under a different name without creating a new legal company. A DBA, however, doesn’t provide an LLC with the same level of liability protection. Your personal assets could be at danger if your company is sued or suffers financial difficulties. Contrarily, an LLC creates a separation between your personal and corporate assets, which can help you feel more at ease.
In conclusion, determining whether your DBA is available is a crucial first step in launching your company. Your branding will be distinct and legally protected if you do your research and reserve your name with your state. To make the right selection for your business, it’s crucial to speak with an attorney and accountant. Whether you decide to use a DBA or an LLC will rely on a number of things.
Yes, an LLC is permitted to use a variety of fake identities, sometimes referred to as DBAs (Doing Business As). As a result, the LLC can operate under many names without having to establish separate legal companies. However, it’s crucial for business owners to confirm that their intended DBA names are available before registering them with the relevant federal, state, and municipal authorities.