How to file a DBA name. Advantages of filing a DBA. The bottom line. Show More. What does DBA mean? Sole proprietorships and partnerships. Other legal entities. Apply Now. Regular APR Recommended Credit Score. Tips for filing. Makes business banking much easier. Keeps your business legally compliant. Your name defines your brand. Opens up expansion possibilities. You want to launch a website.
Easier to register a business name. Frequently asked questions Is a DBA a legal entity? How do I get a DBA for my business?
How much does it cost to start a DBA? Does a DBA have to file taxes? On a similar note Whether or not you are required to have a DBA depends on where you conduct business. Most states require registration, and some do not. Check with your state and local government to determine if you need to register. You can often find this information on the Secretary of State's website. This is good information to know. If your state does require a DBA and you fail to register, you may face penalties.
Even if registration isn't required in your particular state, establishing a DBA may be a good idea. It helps keep your business legally compliant, making it easier to set up several businesses.
When you register a DBA, you will want to know and track its expiration date. Most states require the renewal of your DBA, but the time to renew may vary. For example, if you register your business in California, you'll need to renew the DBA after five years.
In Texas, you can use the DBA for 10 years, while in New York, no renewal is necessary as there is no expiration date. In many states, a DBA registration is good for five years before it requires extension or renewal.
It is important to keep track of expiration dates on your DBA for the welfare of your business. What if you decide not to renew your DBA? If you no longer want to use your DBA, you should cancel the registration to avoid confusion and potential legal issues. Here are the steps you must take to cancel a DBA:. There are several reasons a business owner may want to close a DBA. They could be planning to retire, they could have sold the business to someone who plans to start with a fresh name, or they could have reorganized somehow as a different type of business entity.
Regardless of the reason, canceling a DBA typically involves contacting the authority that registered it, submitting paperwork, and sometimes paying a processing fee. DBA's don't have to file separate taxes - taxes for money generated through a DBA will be included as a part of the business return.
However, the frequency of taxes are filed depends on the way the business is structured. A sole proprietorship files taxes annually unless the business makes no income all year.
You can use your Social Security number when you file your taxes. However, sometimes banks require a business to have an EIN to open a business bank account. Having an EIN and a business bank account establishes legitimacy for your business. To apply, you will need your Social Security number and business contact information. If you do establish a DBA, you will need to provide the name as well.
Since a DBA isn't a formal business structure, there are usually no additional incorporation or organization costs associated with starting one.
The purpose of a DBA is to operate a business entity under a name other than its official designation. This could be a pseudonym for your sole proprietorship or an entire branch of operations for a corporation. Registering a DBA alerts the public that a business entity intends to conduct operations under a name that differs from its official legal name. A DBA can be an excellent way to dip your toe in the water and try a new business or product idea without going all in.
If you are using a DBA as part of a sole proprietorship or partnership, don't wait too long after you have proof of concept to move to the next step. Whether that means starting your LLC or incorporating your DBA , building a strong business starts with protecting yourself legally. This portion of the site is for informational purposes only. Your DBA could expire after some number of years or be valid indefinitely. A DBA is not a separate legal entity. It is simply a nickname for an existing business.
So, while you still have to file paperwork to create a DBA, it does not actually create a new business. Your DBA is just a name. A DBA is often confused with a sole proprietorship. If you are operating a sole proprietorship, you will need a doing business as name in order to open a business bank account or accept payments in a name other than your personal name.
If you have an LLC or a corporation, you will likely need a DBA if you want to conduct business under a name other than the one you already registered.
However, these rules can vary by state. There are some state-level laws that prevent DBAs that are too similar to existing ones from being used, but this varies from state to state. It is possible to trademark a DBA, which would offer stronger protection across state lines. 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! New Order? Existing Order?
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