Is Registering Your Business the Same as DBA?

Is registering your business the same as DBA?
Registering and doing business under a DBA name is not the same as forming a business or a business entity. If you register a DBA without first forming as an LLC, corporation, or some other legal entity type, the state you’re doing business in recognizes your business as a sole proprietorship.

It’s important to take into account a number of legal criteria when beginning a firm. Choosing whether to register your company as a legal corporation or a DBA (Doing Business As) name is one of the most important decisions you’ll make. Although these two choices might appear to be comparable, they differ in a number of ways.

Declaring Your Company

By registering your company, you establish a distinct legal entity from yourself personally. A corporation, limited liability company (LLC), partnership, or sole proprietorship are all acceptable forms of this entity. The opportunity to acquire capital is just one benefit of having your business registered, in addition to liability protection and tax advantages.

You must submit the required paperwork to your state’s Secretary of State office in order to register your business. Choosing a distinctive name, deciding on a business structure, and paying any state-imposed fees are all part of this procedure. You will obtain a formal document, such as Articles of Incorporation or a Certificate of Formation, once your company has been registered. DBA (Doing Business As)

On the other hand, a DBA is a name that a company uses to conduct business under a name other than its legal name. For instance, John Smith, a sole proprietor running a lawn care company, would decide to utilize the DBA “Green Lawns.” John is now able to conduct business without needing to establish a separate legal corporation and under a name that is more recognizable or brandable.

You must first determine whether the name is available in your state before using a DBA. After that, you must submit an application for registration to your state or local government and pay any associated fees. While each state has its own requirements, most require yearly renewals. It is crucial to remember that using a DBA does not provide you the same level of legal protection or tax advantages as registering your firm. Registering Your DBA as a Trademark Whether you can trademark your DBA is a frequent query. You can trademark your DBA, thus the answer is yes. The procedure for doing so is the same as for trademarking any other name, though. A trademark application must be submitted to the United States Patent and Trademark Office (USPTO) after conducting a trademark search to make sure the name is not already in use. You will have the only right to use the name in commerce once it has been approved.

Company cards and an LLC

The need for an LLC designation on your business cards is another frequent query. No, it is not necessary to include LLC on your business cards. However, if you decide to include LLC in your company name, it must be mentioned in all contracts and legal papers. For the sake of branding, you might also decide to include LLC on your business cards. Checking Account Opening and Depositing a DBA Check

Last but not least, you might be curious about whether you can open a standard checking account for your company and deposit a DBA check into a personal account. Yes, you can create a standard checking account for your company even if you operate it as a sole proprietorship. For accounting and tax reasons, it is advised to keep your personal and corporate finances separate. A DBA check can also be deposited into a personal account, although it is recommended that you do so in order to prevent confusion or accounting problems.

In conclusion, there are two legal options when beginning a business: registering your firm and using a DBA. Both have benefits and drawbacks, but it’s crucial to recognize the distinctions and pick the one that best suits your company’s requirements.

Does a DBA need a separate bank account?

Yes, having a separate bank account is advised for a DBA (doing business as) entity. Your personal and corporate funds will remain separate and well-organized as a result. Additionally, it will make it simpler for you to keep track of your revenue and costs for tax purposes.

People also ask what is the difference between legal name and dba?

The name that is officially used by a firm and is registered with the state government is its legal name. DBA (Doing Business As), on the other hand, is a name that a company uses in addition to its legal name. For instance, a sole proprietorship may decide to use a DBA for marketing purposes. The primary distinction between a legal name and a DBA is that a legal name is the name officially used by a company to conduct business, but a DBA is a made-up name that a company employs for marketing or branding.