As mentioned above, one of the best reasons to use a DBA name is to grow an already established business. What you can do is obtain a fictitious business name or assumed business name, which will allow you to operate under a name that is relevant to your new service offerings. In addition, you will still be able to use the same EIN and not need to file a separate tax return for the new service line of your business. The assumed business name will essentially allow you to operate the new business line as an extension of the existing LLC.
A DBA does not allow you to get a separate business bank account for that aspect of your business, or manage the finances for that aspect of your business separately; it is just a name. For most people, the answer is no, unless you want to operate your business under a different name than the LLC. For most people who use a DBA, it means that they are operating as a sole proprietor.
In this case, for a sole proprietor, the DBA is an extension of the natural person. Be sure to stay on top of when you must renew your DBA, as letting it lapse can have a severe impact on your business from a marketing perspective.
Certain states also require you to file a new DBA if the information provided in the original filing changes, such as a change in officers for a corporation , partners for a general partnership , or members for an LLC.
Note that in some states, you can simply file an amendment under these circumstances. In most cases, it is not necessary to hire a business attorney to help you file. The process is simple enough that most business owners can handle it on their own.
However, if you're confused about the process or have a more complicated business situation, it's always a good idea to seek professional help. You should file a DBA if you don't want to operate under your own name or the name under which your business is legally registered.
Besides these scenarios, there are a few crucial reasons why you should consider registering a DBA name. We recommend that every business owner opens a business bank account separate from their personal bank account.
That's because separating your business and personal finances will protect your personal assets in case of a lawsuit, preserve your personal credit score if your business fails, make your bookkeeping and taxes that much easier and generally make you look more professional in the eyes of your clients and small-business lenders.
And without an EIN, you can't open a business bank account. Owners of LLCs or corporations have certain legal protections such as safeguarding the owner's personal assets if the business is sued. And although a DBA doesn't provide you with legal protections in itself, it does further separate you from your business. In the unlikely scenario that your business is sued, for instance, you could offer up your DBA as evidence that your business and its assets are an entity separate from you and your assets.
Additionally, some clients might require that you have a DBA in order to contract with you, or some business lenders might require that you have one before extending any small-business loans to your business.
Your brand name is the public's first impression of your business. Ideally, your business's name should reflect your product or service, and give people a reason to become paying customers. And why would they feel compelled to walk into that shop at all? Registering a DBA allows businesses to operate multiple firms under one ownership, without having to form a separate business entity each time they expand.
Note that if your business expands to other states, you'll need to file a foreign qualification in each new state to avoid steep penalties. Your business's legal name in the states where you qualify will be the name on your company's certificate of authority. If you want to use a different name, you'll have to register a DBA in that state.
In fact, most steps can be completed through the mail or online. The business owner may need to file paperwork in person. You can create a separate identity although not a separate entity without the hassle of forming an LLC , corporation, or other structure. A DBA is usually required for sole proprietors to open a bank account and earn money in the name of your business. DBAs also let you create multiple businesses without having to form a completely different entity.
This would be ideal for paperwork and tax purposes when operating multiple business endeavors. Note however that simply filing a DBA will not change any of the tax consequences for your business. Finally, if you have an LLC or corporation , it could keep you in compliance with the law. If you execute a contract under a different name than your legal, operational name, the contract may not be valid or enforceable in the event of litigation.
Choosing to set up a DBA in the state of California is often a smart decision, whether you are planning to build a larger business or begin a career in self-employment. You can form a business that has the name you want, as long as it's available, even if you're starting as a sole proprietorship. Another benefit of filing a DBA form is the option to keep your personal information out of the name of your business, which could become very well-known.
You may not necessarily want everyone to know that you own a certain business. There is no limit to the number of DBA names you can register. You can file as many DBAs as your business needs. If you own a corporation or LLC, incorporate. If you conduct business as a sole proprietor or partnership, our services depend upon the location of your business. Please contact us for more information about the services we offer in your area.
In some cases, we can help sole proprietors and partnerships file DBAs. State and local offices have unique rules for DBA expiration. While some state and local governments require businesses to renew DBA filings, others do not.
If your business must renew its DBA registration, your state or local government office typically sends a renewal notice to the business. Depending upon the location of your business, we may offer DBA renewal services in your area. Get help renewing your DBA name by contacting us at toll-free or Not quite ready to pull the trigger? Our Incorporation Specialists can provide some answers to help you decide. Celebrate Small Business Month!
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