A crucial step in launching a business is selecting a name. Make sure the name you intend to use is not already being used by another company by conducting a thorough search. There are various ways to determine if your intended business name is available in Michigan before you launch it. The simplest method is to conduct a search on the website of the Michigan Department of Licensing and Regulatory Affairs (LARA).
Visit the LARA website and click on “Business Entity Search” in the “Business Services” tab to conduct a business name search. After entering your desired name, select “Search.” If the name is available or is being used by another Michigan-registered business entity, the search results will let you know. You will need to choose a different name if the one you like is already taken.
Once you have identified a name that is available for your company, you must register it with the State of Michigan. By submitting a “Certificate of Assumed Name” or “Doing Business As” (DBA) form to the county clerk’s office in the county where your business is located, you can accomplish this. Although the DBA application price varies by jurisdiction, it normally ranges from $10 to $25.
Although a DBA is a quick and affordable solution to register your business name, there are some drawbacks to take into account. First off, a DBA does not give your company name any legal protection. You won’t have any legal options to prevent another company from utilizing the same name if they start doing so. Furthermore, a DBA offers no liability protection for your company. Your personal assets may be at danger if your company is sued.
Additionally, a DBA has no impact on how your company is taxed. You must still file a personal income tax return and include a Schedule C with your business revenue and expenses if you are a lone owner utilizing a DBA. If your company is an LLC or partnership, you must file a separate tax return.
While registering your firm as an LLC or corporation has some tax benefits, a DBA does not offer any of these perks. These business structures can offer tax advantages, such as reduced self-employment taxes and the ability to write off health insurance premiums, as well as limited liability protection for your own assets.
In conclusion, it is crucial to conduct a thorough search before registering your business name in Michigan to make sure it is not already being used by another organization. The LARA online search is the quickest way to accomplish this. You can register a name with the State of Michigan if it is available by submitting a DBA form to the county clerk’s office. A DBA is a quick and affordable option to register your company name, but it offers no legal or liability protection. Think about setting up your company as an LLC or corporation for additional security and possibly tax advantages.