One of the most crucial factors to take into account when launching a new business in Minnesota is the name of the company. It helps develop your brand identity and differentiates you from the competition. But choosing a company name can be difficult, particularly if you’re a first-time business owner. In this post, we’ll explain how to register a business name in Minnesota and respond to some frequently asked questions on the subject.
You must confirm that a business name is available for use in Minnesota before registering it. Use the online business name search tool provided by the Minnesota Secretary of State to see if a name is available. Using this tool, you can check to see if the business name you want to use is already used by looking up any Minnesota-registered existing business entities. You’ll need to think of an original name that isn’t already in use if your intended business name is already used.
A DBA (Doing Business As) is an alternate name used by a company to conduct business. If you intend to run your business in Minnesota under a name other than your legal name, DBA registration is not required, but it is advised. You must register a DBA, for instance, if you’re a sole proprietor and wish to use a business name that differs from your given name. By registering a DBA, you may give your company a distinct name and make it simpler for consumers to find you.
A DBA and an LLC are two distinct legal entities with distinct functions. While an LLC is a formal corporate entity that shields its owners from responsibility, a DBA is merely the name under which a company conducts business. In contrast to forming an LLC, which creates a separate legal entity that is different from its owners, registering a DBA does not create a separate legal entity. Because of the liability protection offered by an LLC, the owners are not held personally responsible for the debts and liabilities of the company. However, a DBA offers no liability protection, thus the business owner is individually liable for all debts and obligations incurred by the company.
Depending on your company’s needs and objectives, you should choose an LLC or a sole proprietorship. The simplest and most economical business structure is a sole proprietorship, however this has no liability protection. A sole proprietorship may be a smart choice for you if you run a low-risk firm and don’t care about liabilities. However, creating an LLC can be a better choice if you’re worried about liability and want to safeguard your personal assets. An LLC offers its owners liability protection as well as tax advantages, management flexibility, and simpler access to money.
In conclusion, choosing a company name in Minnesota is a crucial part of beginning a new venture. Make sure a business name is available before registering it by utilizing the online business name search tool provided by the Minnesota Secretary of State. If you want to run your business under a name other than your legal name, you can also think about obtaining a DBA. Finally, take into account your business needs and objectives when picking between an LLC and a sole proprietorship, and select the one that best suits your circumstances.
A new LLC must pay a $135 filing fee in Minnesota. The cost of expedited processing and other services could be extra, though. It’s also crucial to keep in mind that there can be continuous costs associated with managing the LLC, like as taxes and annual renewal fees.