Overview of DBA (Doing Business As)
A DBA allows a business to operate under a name other than its legal name. To obtain a DBA, file paperwork and pay fees with the state or county. Costs range from $10-$100. A DBA operates as an extension of the legal business so tax obligations remain unchanged. However, some states require additional registrations for DBAs. Research state and local laws to ensure full compliance. Sole proprietors and partnerships must register DBAs since they lack formal incorporation documents. Corporations and LLCs may file DBAs to use alternate business names.
DBA for Tax Purposes
What does DBA mean on a tax return?
DBA allows business to legally operate under name other than its registered name. To obtain, file paperwork and pay fees with state or county. Costs range $10-$100. DBA operates as extension of legal business so tax obligations unchanged. However, some states require additional DBA registrations. Research laws to ensure compliance. Sole proprietors and partnerships must register DBAs since they lack formal incorporation. Corporations and LLCs may file DBAs for alternate names. Can use existing EIN for DBA. IRS does not require separate DBA registration but other agencies might.
Business Name Change and IRS
How do I notify the IRS of a business name change?
DBA allows operating legally under a name other than registered name of business. To obtain, file paperwork and pay fees with state or county; costs range $10-$100. As an extension of legal business, tax obligations remain unchanged. However, additional DBA registrations are required in some states; research laws for compliance. Sole proprietors and partnerships must register DBAs since they lack formal incorporation documents. Corporations and LLCs may use DBAs as alternate business names. Can also use existing EIN for a DBA. Separate registration with IRS not required but other agencies might need it.