A DBA is an alternative name for a business. It allows businesses to operate under multiple names without registering new entities. A DBA can protect owners’ identities or provide privacy. Ensure the name does not infringe laws when registering a DBA. A DBA differs from corporations or LLCs in that it is an alternate name lacking liability protection.
Filing for a DBA
Verify your DBA name’s availability. Getting an EIN separates you from the business. An EIN allows opening bank accounts and tax filing without using social security numbers. Most states require filing for a DBA certificate to operate a general partnership or sole proprietorship under a fictitious name.
Filing requirements for a DBA vary. Check with government offices on requirements and fees. You can often file and register names online for under $100. Some states require published notices of intent to use the name. Search your area to ensure the uniqueness of the chosen name. Start with state websites.
Comparing DBA with Other Business Structures
Although not required in Wisconsin, an operating agreement outlines LLC affairs. If John Smith registers a DBA "John’s Painting Company," he does not have an actual company. Franchises can register businesses then use DBAs to trade under the brand.
A DBA offers pass-through taxation, multiple names for different products, and branding and privacy benefits. Lenders review bank statements, so a DBA aids in getting business loans. Contracts require a business name, so DBAs facilitate compliance.
With a DBA, there is no separation between personal and business assets. The owner is responsible for all debts. LLCs protect personal assets and give state naming rights. DBAs have lower costs and simpler requirements. Consider liability exposure and legal implications before choosing, and make an informed decision after thoroughly reviewing both options.