Assumed names have been used for millennia to allow people and organizations to function under a name other than their legal identity. A “doing business as” (DBA) name is another term for an assumed name. It enables people and companies to operate under other names without having to go through the formal procedure of changing their names.
“Alias” is a five-letter word that means assumed name. It’s a term frequently used to indicate someone using a fictitious name in crime dramas. In the business realm, it is a legal phrase that permits business owners to use a name other than their legal name for their company.
It’s acceptable to put a DBA on an invoice, and many companies do so frequently. Small business owners, independent contractors, and freelancers frequently use it to operate under a company name that is more recognizable and marketable. It also makes it easier to distinguish between one’s personal and professional finances.
However, a sole proprietorship has the drawback of providing the firm owner with no legal protection. In other words, the business owner is liable for all obligations and liabilities incurred by their company. The owner’s personal assets are in danger if the business is sued or fails.
There are a few steps you must take in Illinois if you wish to register under an assumed name. You must first select a name that is not being used by another company. To find out if the name you want is available, visit the Illinois Secretary of State’s website. The county clerk’s office where your firm is located must receive a DBA form once you have a name selected. Additionally, a fee that differs from county to county must be paid. After that, you will get a certificate allowing you to conduct business under the assumed name.
In conclusion, an assumed name is a legal phrase that permits people and companies to conduct business under a name other than their legal one. Small business owners, independent contractors, and freelancers all frequently use it. While it has advantages like marketability and separating personal and corporate funds, it also has drawbacks including giving business owners no legal protection. In order to register an assumed name in Illinois, you must select a name, submit a DBA form, and pay a filing fee.
You should register your DBA name with your state or local government in order to preserve it. Normally, this entails submitting a form and making a payment. Once registered, your DBA name will be protected against unauthorized use. As an added measure of security, you can think about trademarking your DBA name. You should speak with a lawyer for guidance on how to best protect your business name because registering your DBA name does not grant you the sole right to use the name in all situations.
A separate bank account is necessary for a DBA (Doing Business As). To keep your personal and business finances distinct, it is advised that you open a separate bank account for your DBA. You will find it simpler to manage your money, keep track of your business spending, and submit your taxes as a result. You’ll be able to keep your professional image and prevent uncertainty regarding your personal finances as well.