Selecting a name that effectively captures your brand and distinguishes you from rivals is one of the most crucial tasks when launching a new business. However, you must reserve your desired name with the state of Michigan before you may begin using it. In this post, we’ll explain how to reserve a business name in Michigan and respond to some frequently asked questions about registering a business there.
You must submit a Name Reservation Request to the Michigan Department of Licensing and Regulatory Affairs (LARA) in order to reserve a business name in the state of Michigan. The form can be finished in person at a LARA office, via mail, or online. $10 is required to reserve a name, and the reservation is good for six months.
The following details must be included when completing the Name Reservation Request form: Your chosen business name, your name and contact information, your business type (LLC, corporation, etc.), your company’s goal, and your preferred reservation’s start date should all be included. You’ll get a Name Reservation Certificate from LARA once your name reservation has been finalized. In order to provide you time to register your company with the state, this certificate reserves your company name for the following six months.
Selecting an LLC vs. a DBA
You must choose between operating as a DBA (Doing Business As) and an LLC (Limited Liability Company) when registering your business in Michigan. The optimal decision for your company will rely on your particular needs and objectives because both options offer advantages and disadvantages.
With a DBA, you can easily register your company name without setting up a distinct legal corporation. Small enterprises that don’t need a lot of structure or legal protection should choose this option. However, using a DBA doesn’t offer the same liability protection as an LLC, so you’ll still be responsible for any incurred debts or legal problems.
An LLC, on the other hand, provides your company with greater structure and legal protection. Because your personal and corporate assets are segregated by an LLC, you are not personally responsible for any debts or legal problems relating to your firm. However, setting up an LLC involves more paperwork and costs than doing business under a DBA.
On the LARA website, you can look for existing DBA names if you’re conducting business under a DBA in Michigan. You can use this tool to look up DBAs by name, business type, county, and other criteria. Before establishing your own DBA name, it is crucial to search for any already-registered ones to avoid any ambiguity or legal difficulties.
Yes, you can use the LARA eCorp system to register your business online in Michigan. With the help of this system, you may register your company, submit yearly reports, and handle other business-related chores online. Before beginning the registration procedure, make sure to review the eligibility requirements because not all business kinds are eligible for online registration.
Do You Need a DBA to Operate in Michigan? No, a DBA is not required in Michigan. However, you must register your DBA with the state if you’re doing business under a name other than your legal name. Both partnerships and sole proprietorships are affected by this. When registering with the state, use your legal business name if you’re an LLC or company conducting business.
Conclusion: When beginning a new firm, reserving a business name in Michigan is an essential step. You may make sure that the name you’ve chosen is available and held especially for you by taking the actions described in this article. Additionally, knowing the distinction between an LLC and a DBA as well as how to look for current DBAs can assist you in making well-informed judgments on the structure and registration of your company.