How do you maintain a DBA?
How to Set Up a DBA in California Step 1: Name Check. Make sure the DBA name is not already in use in California. Step 2: File a Fictitious Business Name Statement. This is also at your county clerk’s office. Step 3: Publish Your New Name. Step 4: Pay the Fees. Step 5: Follow Up.
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The phrase “Doing Business As” (DBA) is frequently used to refer to a legal business name that is different from the owner’s given name. It is sometimes referred to as an assumed name or fictitious name. Small firms that desire to conduct business under a name different than their legal name should consider a DBA. A DBA must be maintained, though, and this takes time and work. The following information can help you maintain the integrity of your DBA. In Texas, a DBA must be renewed. Every ten years, DBA registration must be updated in Texas. In Texas, renewing a DBA costs $26. Through the website of the Texas Secretary of State, you can submit a renewal application online. Before it expires, you must renew your DBA to avoid any legal repercussions. A DBA’s validity in California has expired. DBAs in California never expire. Your DBA will be active once registered until you elect to revoke it. However, you must keep the California Secretary of State informed of any changes to your DBA information. If your company’s name or address changes, you must also submit a new DBA registration. Advantages and disadvantages of a DBA Before registering a DBA, there are a few drawbacks to take into account. First off, a DBA offers no liability protection. This implies that you will be financially liable for any losses if your company experiences legal problems. Second, a DBA does not prevent other people from using your company name. You might have to go to court to defend your rights to that name if someone else registers a domain with the same name as your DBA. A separate bank account should be set up for a DBA. There is no need for a separate bank account for a DBA. Having a separate account for commercial transactions is a smart idea though. This makes filing taxes easier and aids in financial management for your organization. Additionally, having a separate company account gives you a more credible appearance to customers and suppliers.
In conclusion, sustaining a DBA is reasonably easy and inexpensive. You must keep track of renewals and maintain your contact information current with the appropriate authorities. A DBA can be an excellent choice for small firms wishing to conduct business under a different name, despite some drawbacks to take into account. Finally, to keep your finances structured, it’s usually a good idea to maintain a separate bank account for your business activities.