1. Legal defense: By registering your company under a different name, you can safeguard your private assets in the event of litigation. This implies that your personal assets, such as your home or car, won’t be in jeopardy if your company is sued.
3. Branding: If your company name is catchy or distinctive, a DBA certificate can assist you in building your brand and making it simpler for clients to recall you.
In Minnesota, how do you obtain a DBA certificate? The procedure is not too difficult. A Certificate of Assumed Name must be submitted to the Minnesota Secretary of State. You must fill out this form with both your personal information (name, address, etc.) and your company’s name and address. Additionally, there is a filing fee of $50 in Minnesota that must be paid.
A DBA certificate will be given to you once your Certificate of Assumed Name has been authorized. This certificate serves as evidence that you have the right to run your company under the name you’ve chosen.
It’s crucial to understand that a DBA and an LLC, or limited liability business, are not the same thing. An LLC offers more security than a DBA because it is a separate legal entity from its owners. Instead of obtaining a DBA certificate, you might want to think about creating an LLC if you want the maximum amount of legal protection.
The procedure for establishing a sole proprietorship in Minnesota is comparable to obtaining a DBA certificate. The Minnesota Secretary of State will require that you register your company and secure any relevant permissions or licenses. You must also submit the necessary documents and pay any costs that may be due. Once you’ve completed everything, you can launch your company as a sole proprietor.
Finally, obtaining a DBA certificate can give your company legal protection, professionalism, and branding options. If you’re interested in establishing a sole proprietorship or obtaining a DBA certificate in Minnesota, do your homework and do all the required actions to do so lawfully.