How to Add a DBA to an LLC

A DBA is also referred to as a fictitious name or trade name and enables a business to trade under a different name than the name registered with the law. As an illustration, when your LLC is known as Jane T-Shirts, but you are interested in starting to sell shoes, you may open a DBA as Jane T-Shoes-Shoes.

DBA registration is not a legal entity, and it has no impact on the taxation of your business. It merely gives your business the right to use another name in a legal manner.

When you are a sole proprietorship or a partnership, there is a general rule that you will have to use your legal name when doing business, unless you form a DBA. The registration of DBA is done at the county or municipal level in most states although some states may require registration at the state level.

Why Should You Choose a DBA?

DBA is not a business and owns no liability. The business and its owner are not legally distinguished when the business is conducted under a DBA. Consequently, the owners of businesses are still personally liable to business debts and obligations.

A DBA does not tend to give exclusive rights on the name, unlike an LLC or corporate name. In other states, DBA may be registered and used by several businesses. Due to this fact, it is necessary to check naming laws of your state prior to filing.

Although a DBA cannot provide any form of liability protection, there are a number of viable reasons to use it. An attractive DBA may be more acceptable or sellable than your company name LLC, which can be used to appeal to the customers.

Also, in case your LLC intends to sell a variety of products or services, DBA will enable you to establish different brand names under one legal business entity.

Adding DBA Name to Your LLC

It is usually easy to add a DBA to LLC but one should check the requirements of the state, county, city, and business structure. On your state and local government websites you need to review particular rules and instructions on filing.

The fee to get a DBA in most instances is less than 100 dollars and in most jurisdictions, one can file it online.

In certain states, business proprietors are obliged to place an advertisement in a newspaper within their area of residence stating that they plan to utilize a DBA. This is necessary to make the community aware of the situation and avoid confusion of names. Another thing you need to do before filing is to search business name databases that already exist to ensure that the desired DBA is not in use. This is done by most states websites through name-search tools.

Some states have a periodical renewal of DBA registrations. When your DBA gets active, make sure that you monitor deadlines of renewal and adhere to all the constant mandates to maintain its validity and active period.

Key Takeaways

• A DBA helps your LLC to be run under a different name without creating a new legal entity.
• In most states, DBA does not offer any protection of liability or exclusive name rights.
• The registration fee is generally less than 100 and it could even be made online.
• In otherwise, in some states, it must be published as a notice in a local newspaper.
• Do not forget to check whether the desired DBA is availed before filing.
• Depending on the state, DBA registrations may have to be renewed every now and then.