If you are about to start your own business and wondering what DBA is, well, it stands for ‘Doing Business As’. Its work is to inform the customers about the true ownership of a company. DBA works as a protection saving the customers from illicit and deceiving business practices. You are required to file a DBA if you are planning to start your business with a name which is different from your own name as the sole proprietor or the legally incorporated LLC of yours. It is very important to understand the significance of DBA in your business as well as the procedure to set it up to avoid legal backlash and financial problems in future. Lets to check Lucky Patcher is a free Android app that patches applications and games, blocks annoying ads, manage app permissions, and more.
How To Set Up A DBA?
By following these simple steps you will be able to set up a DBA successfully:
- Choose a business name to register your DBA. Be wise in picking up a name. Make sure that the name is easy to pronounce, spell, and of course, remember. Although, there are not many DON’Ts when it comes to trade names, many states, however, condemn the business names that bare stark resemblances to any existing firm. Also, don’t put up fancy names that might end up confusing your customers about your services and/or products.
- After deciding a name, get a DBA statement form printed online or visit the clerk office at your country. The business owners in different states and countries are offered specific instructions by the Business Administrations all across the world. Even if you have just added a word or two before/after your own name, that would still be considered as DBA. For instance, if Martin LeBlanc owns a toy store named as ‘Martin LeBlanc’s Toy Store’, he would still have to register for a DBA although his name is present in his business name.
- Fill up the DBA form for requesting the fictitious business name of yours and submit it along with the fee, as per the guidelines. Some states ask for a publish notice in the local daily from the filers to alert the public about the changes made in the business name. Make sure to do your research and thoroughly read all the instructions to avoid any kind of penalties or fine. Also ensure that you are well acquainted with all the legal requirements and guidelines regarding the business and DBA.
If looked at from a legal standpoint, the basic format of your business name after setting up your DBA will look something like “YOUR NAME, D/B/A NAME’S BUSINESS”. After registering the DBA, you will be able to conduct various bank activities, open up bank accounts, and so on, using the business name instead of your own name.
DBA is also useful when you are planning to cater to different age groups or demographics. By creating a different name, you are free to alter tour marketing and advertising materials for reaching out to different kinds of people, even though you’d be offering the same service or products virtually.