Making a name decision is one of the first steps in starting a business. A “doing business as” (DBA) name must be registered if you choose to conduct business under a name other than your legal name. A DBA is frequently referred to as a “trade name” or “fictitious business name.” You can conduct business under a name other than your legal or legal entity name if you have a DBA. But how can your DBA name be secured? What you should know is as follows. Does a DBA give you protection?
Your business name is not really protected legally by a DBA registration. You can simply carry on business under that name. You must submit a trademark registration application to the United States Patent and Trademark Office (USPTO) in order to protect your company name. You have the sole right to use your company name in connection with the products or services you offer if you register a trademark for it.
A name that is either generic or too close to an already-existing trademark cannot be trademarked. For instance, if your company is called “Apple Pie Bakery,” you are unable to trademark the term “Apple Pie” due to its very general nature. Additionally, you cannot trademark a name that is objectionable or likely to confuse consumers. Last but not least, you cannot trademark a name that is already in use by another party.
Someone else may be able to trademark your company name if they can demonstrate that they were the first to use it or that your name is excessively similar to theirs and likely to confuse customers. Because of this, it’s crucial to conduct a trademark search before utilizing a fresh company name.
You can conduct business under a name other than your legal name or the name of your corporation if you register a DBA. This can be helpful if you want to establish a distinct brand for your company or run many enterprises under various identities. In many areas, a DBA is also required by law, so if you want to use a name other than your legal name, you should register your DBA.
In conclusion, registering your DBA name alone won’t suffice to safeguard it. You must submit a trademark registration application to the USPTO in order to properly protect your company name. As a result, you will have the sole right to refer to your products or services using your company name. If you’re not sure if your company name qualifies as a trademark, speak with an intellectual property lawyer who can help you through the process.
The legal form of the business determines the tax advantages of a DBA. When a DBA is a sole proprietorship, all business profits and losses are reported on the owner’s personal income tax return; there are no separate taxes for the business. The tax advantages may include the ability to write off business expenses, reduced tax rates for company income, and the capacity to segregate personal and business finances for tax purposes if the DBA is a component of a larger legal entity, such as an LLC or corporation. It is always advised to speak with a tax expert to ascertain the precise tax advantages of a DBA for your company.