Surprising “Things You Need To Know About Doing Business As (DBA)
A business is said to be “doing business as” when its operational name is different from the legal name from which it is registered. The DBA is beneficial to the business because it helps it to carry out business at a lower cost. This means that the firm doesn’t have to create a new entity. The DBA name is used for transactions, advertisements, and marketing of the company. Many countries require every firm to file its DBA name. The filling is essential because the clients are given protection when they are transacting with business.
Potential entrepreneurs who want to venture into the business can either select a DBA name or regular business name. However, DBA name is mostly used in sole proprietorship and partnership forms of business. The fictitious name that you register your business should be registered with the necessary registration authority. When registering the name, it should not have names such as a corporation, Inc., corps, etc. These names are only used by only those businesses that are registered as a corporation by the state. Some states require your full name, while others allow part of your name plus a description of your services and products.
The process of filling the DBA name is different in different countries. In most countries, it is simple to file because you are only required to pay the registration fee to the authority. Other states have stringent measures because you are required to pay the registration fee and also advertise the name in the newspaper. You must establish an acceptable payment method. The name is expected to be in the paper for a specific period. Most banking intuition require the entrepreneur to present a DBA registration certificate to be allowed to open a bank account. In case the businessman doesn’t have, he/she is requested to apply for the certificate first. Many firms in Los Angeles can help you with DBA filing. Such companies will help you in the whole process of filing and publishing your name.
The process of filing the DBA name depends on the state. It may take from one week up to a month to approve your DBA name. However, it is prudent that you file your DBA name one to two months before you commence your business. An early filling is essential because you may start your name, and unfortunately when you present, your DBA name is rejected. When your application is approved, you receive a DBA certificate.
Business assumes the DBA name because of many reasons. The title helps allow to use it for business without creating a legal entity such as partnership and corporation. This is beneficial because doing business under a sole proprietorship is less costly. The name is useful because it allows entities such as corporations to do business without creating a new entity for that new business. Finally, you can use the name to segregate the market. When your firm wants to diversify to a new product that is not related to an existing business, it can use the DBA name.