A fun aspect of launching a new business is selecting a name. However, it’s crucial to make sure that your selected business name is legal before you begin marketing your company and building a brand around it. This article will cover the legal requirements for a business name, how to find out if a name is already used, and the distinction between an LLC and a DBA.
A business that operates under a name other than the owner’s name or the name of the legal body is referred to as having an ABN (Assumed Business Name) in Idaho law. John Smith would have to establish an ABN if he wanted to launch a company called “John’s Pizza,” for instance. It’s easy to register an ABN in Idaho, and you may do it online or by mail.
Each state has its own requirements for obtaining a DBA (Doing Business As). A DBA can be obtained in a few days in some states, while it may take up to a few weeks in others. A DBA is typically obtained by submitting an application to the local government and paying a fee. You’ll be given a DBA certificate once your application is accepted, enabling you to lawfully do business under the name of your choice.
The legal entities a DBA and an LLC (Limited Liability Company) are distinct from one another. An LLC is a corporate entity that shields its owners from personal liability, whereas a DBA is only a name you use to do business. By forming an LLC, you establish a distinct legal entity that will be in charge of paying the company’s debts and liabilities. A DBA, on the other hand, offers no legal protection, and the business owner is still liable for any obligations and responsibilities incurred by the company. How Should a DBA Be Written on a Check?
You must include both the legal name of the company and the DBA name on checks made out to entities doing business under a DBA. For instance, if John Smith’s company is known as “John’s Pizza,” but he has an ABN registered under the name “Pizza Express,” he must sign the check as “John Smith, doing business as Pizza Express.”
In conclusion, picking a legitimate business name is a crucial first step in launching a new venture. You can make sure that your company is operating lawfully and is protected from potential liabilities by being aware of the legal criteria for registering a business name and the distinction between a DBA and LLC.