Is a DBA Required in Massachusetts?

Is a DBA required in Massachusetts?
DBAs in Massachusetts. Under Chapter 110, Section 5 of Massachusetts General Laws, a DBA is required to be registered by any person who conducts business in the state under any name other than their personal name, whether individually or a partnership.
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A DBA or “Doing Business As” is frequently used by sole owners and partnerships in Massachusetts as an alternative name for their company even though it is not legally needed. A DBA enables a business owner to use a name other than their formal business name or their own name personally. This can be advantageous for branding objectives or to come up with a more memorable company name.

In Massachusetts, obtaining a DBA is a rather straightforward procedure. Selecting a name that is not being used by another company in the state comes first. You may do this by looking up the business name in the state’s database. After deciding on a name, the business owner must submit a “Certificate of Business” to the Commonwealth Secretary. $50 is the filing fee.

In Massachusetts, a DBA is valid for five years after it is registered. If the business owner wants to keep using the name after that, it must be renewed. The renewal cost is $50 as well.

It is crucial to remember that a DBA does not give the business owner any legal protection. They might just choose a different name for their company. Instead, a business owner might wish to think about creating a Limited Liability Company (LLC) to safeguard their personal assets from any future corporate liabilities.

An LLC offers liability protection for its owners and is a distinct legal entity from them. It is also able to open bank accounts, sign contracts, and have its own tax identification number. In order to create an LLC in Massachusetts, you must submit your articles of formation to the Commonwealth’s Secretary and pay a $500 fee.

A “Business Certificate” must be submitted to the municipal or town clerk where the business is situated in Massachusetts in order to register a sole proprietorship. The cost varies depending on the municipality. The business owner must also get any licenses or permits required by their particular industry.

Conclusion: Even though a DBA is not necessary in Massachusetts, it can be a helpful tool for business owners who want to operate under a different name. Massachusetts charges $50 for a DBA, which is good for five years. Instead, a business owner might want to think about creating an LLC if they desire legal protection for their own assets. A business certificate must be submitted to the municipal or town clerk where the business is located in Massachusetts in order to register a sole proprietorship there.

FAQ
Do I need to register a sole proprietorship in Massachusetts?

Yes, you must register your firm with the state if you run a sole proprietorship in Massachusetts. You can do this by submitting a “Doing Business As” (DBA) registration form to the Corporations Division of the Massachusetts Secretary of State. With this registration, you will be able to lawfully conduct business under a name different than your own.