If you’re thinking of filing a DBA for your business, then you are in luck, since it is one of the easiest processes to do. It comes in three easy steps and can be done in no time if you are organised and have everything at hand. The three easy steps are: creating a DBA name, doing a DBA name search and registering a DBA with your state. However, even though the process is easy, there are still things that you need to know about.
In this article we will go over a few important points about filing a DBA and what you should know.
The DBA name
DBA stands for ‘Doing Business As’ and is basically a secondary trade name or nickname that you are listing for your business. This is only needed to be done when you are planning on expanding your services for your business. However, even though you can choose what your DBA name can be, you also have to consider the fact that it cannot be the same or too similar to an existing business name.
It is also required in some states that you have to register your DBA with the state government, whereas in others it has to be the city or country government. In order to make your life easier for this part of the process, you can take advantage of the free online tools such as the business name generator, that can offer suggestions and DBA name ideas.
In the second step of the process, you need to search up your DBA name in order to guarantee that it’s not too similar or the same as an existing business name. You would have to do this by searching on the U.S. Trademark Electronic Search System. Once you have checked this, you can go on to registering your DBA with the state you are in.
The fees
You do need to pay for a fee when registering for a DBA and the price can vary depending on the state that you are applying in. It can be anywhere between $10 to $100. A DBA can also expire or be valid indefinitely, depending on the states’ rules. There is no limit to the amount of DBAs you can have, but it will still cost you every time you register. A DBA doesn’t offer limited liability protection or any formation for a business structure. You are still operating under the same legal entity for your business, but with an added trade name for the expansion of your services.
If you are also looking to change the contact information for your DBA at a later date, this can be done but there will be an additional fee for this. DBAs cannot be transferred, but new ones can be created.
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Do I have to pay taxes for my DBA?
You do not need to pay any additional taxes for your DBA, since it is not a separate legal entity. Since you are listing it under your existing business entity and can accept payments under your existing business bank account, you are not paying any additional taxes. This also means that your DBA doesn’t need an EIN, since it is not needed for tax purposes, any hiring processes or protection against liability.
Is having a DBA important?
Having a DBA is only important if you choose as a company or sole proprietor to expand your operations. However, it also plays a beneficial role for your company in case you want to give a second impression as a brand to customers, by rebranding your image and reputation with a new line of service or products. A DBA is not important to have if you haven’t formed a business structure already for your business, which needs to be done first since you have to operate your DBA name under an existing legal entity.
