There are several factors to think about when beginning a business, including what kind of legal corporation to create. A limited liability company (LLC), which shields its owners from personal liability, is one choice. However, even after creating an LLC, you might prefer to give your company a different name. A DBA, or “doing business as,” is useful in this situation.
Is a DBA therefore a copyright? The quick response is no. A DBA does not provide a business name any kind of legal ownership. Instead, it only permits a company to function under a name other than the one under which it was registered with the state. As long as they do not violate any already-existing trademarks or copyrights, other companies are free to use the same or a name that is similar to theirs.
When ought a DBA to be used? There are a number of reasons why a company would decide to hire a DBA. For instance, if your business is a sole proprietorship or partnership, you might wish to utilize a DBA to give it a more credible name. Additionally, if your LLC has many brands or business lines, you might wish to establish a DBA for each one to help buyers recognize and distinguish your products.
How then does a DBA operate? You must register a DBA with the state or county where your business is located in order to use it. Typically, registering requires completing a form and paying a fee. You can use your DBA to conduct business as soon as it has been approved. It’s crucial to understand that using a DBA does not turn your LLC into a different legal entity. This implies that you remain individually responsible for any debts or legal problems resulting from the conduct of your firm. Does it matter what your LLC is called? It does, indeed. Your LLC name needs to be original and should not violate any registered trademarks or copyrights. Additionally, your LLC name should be simple to remember and spell while appropriately reflecting the nature of your company. Remember that your LLC name will be listed on all legal and commercial documents, so it’s crucial to pick a name you feel confident using. What is required to set up a DBA bank account? You will need to present proof that your business is registered with the state or county in order to open a bank account for your DBA. Your DBA registration certificate, business license, or bylaws may be included here. For each account signer, you also need to present personal identity and proof of address.
A DBA does not grant a business name any legal ownership rights and is not a copyright, to sum up. For companies that want to operate under a different name than their registered LLC name, it might be a helpful tool. If you choose to use a DBA, make sure to register it with the state or county, use a name that appropriately describes your company, and make sure it is simple to remember and spell.
The correct way to write your legal name when applying for a DBA is to first provide your full legal name, followed by the fictitious name or trade name you will be conducting business under. If your legal name is John Smith and you want to operate under the name “ABC Cleaning Services,” for instance, your DBA name would be “John Smith doing business as ABC Cleaning Services.”