Adding a DBA to Your LLC
To add a DBA to your LLC, follow these steps: Choose a business name, file a DBA application with the state, and comply with local, state, and federal regulations. A DBA allows a business to create a unique brand identity. This can be especially useful if the legal name of the LLC is not catchy or does not reflect the products or services it offers. A DBA gives an LLC the flexibility to operate multiple businesses under different names. This is particularly useful for entrepreneurs who have multiple ventures or want to expand into new markets without creating separate legal entities for each business. By adding a DBA, an LLC can protect its legal rights to a business name.
Process of Adding a DBA
You can start the process online after learning where to register Doing Business As (DBA) to an LLC. Provide information in the provided boxes and file it with the state. You cannot use a name that’s similar to identical to another business in many jurisdictions. Consider choosing a unique name as a marketing strategy to distinguish you from other competitors.
Registering a DBA
Pick a business name that is distinct and not already being used by another business. Register for taxes, including sales tax obligation, employer withholding tax, and joblessness tax obligation with the state Division of Revenue and Business Services. Depending on the type of business, acquire any necessary licenses or permits. Businesses can usually register a DBA with the county clerk’s office or the state agency responsible for business registration. Some states require publishing a notice of the DBA registration in a newspaper. Consequences exist for failing to properly file a DBA.
Adding a DBA to Your EIN
To add a DBA to your LLC, file a DBA application with the state. Provide information in the boxes. You cannot use an identical name to another business. Consider choosing a unique name to distinguish you from competitors. Whether you do business under your formal name or a DBA, obtaining a Federal Employer Identification Number has the same process. Applying is free and easy. You only need one number even with multiple DBAs.
Additional Information on Adding a DBA
When adding a DBA, inform the IRS by filling out Form 8822-B. Register the DBA with the state agency to legally protect it. Keep records of all transactions under the DBA. Check if the DBA requires additional registration or reporting. Use existing EIN and associated DBAs when filing IRS forms.
Managing Multiple DBAs
Your DBAs are business nicknames. You do not need separate EINs for them. Whether required depends on your business organization and taxes paid. You do not need separate bank accounts for DBAs unless you want easier accounting and taxes.
Application Process
To apply for a DBA, submit its name with your business’s legal name, EIN, SSN, and/or state tax ID. Once approved, you will receive notification. EINs identify businesses for tax purposes. When changing or adding DBAs, only one EIN is used, automatically connected to new DBAs with the legal name.
Updates on EIN and DBAs
If no filing history, send name change requests to the IRS address where you file returns. A company can use one EIN across multiple DBAs, as long as units aren’t separate legal businesses. You can have multiple DBAs under a sole proprietorship or corporation. EINs match name controls in IRS records. A company can typically register multiple DBAs in one state. Each division of a single entity business does not need its own EIN.
Understanding the Purpose of a DBA
A DBA publicly notifies operating under another business name, common for multiple business owners. Consider a DBA like a nickname; your real name matches your SSN, used for taxes. You do not need to update the IRS with a new DBA name after getting an EIN. The IRS only needs the EIN.
Adding a DBA to an Existing S Corp
To add a DBA to your LLC, file a DBA application with the state. Provide information in the boxes. You cannot use an identical name to another business. Consider choosing a unique name to distinguish you from competitors.
Process for S Corporations
Adding a DBA to your S-corporation means you’re adding an alternate name to your company under which to do business. Either the Secretary of State’s office or the State Corporations Division office guides through steps and paperwork. Next, establish new bank accounts. Include information on the S-Corp or LLC’s full name and DBA name details. File the name change with the IRS.
Name Change for Tax Purposes
On Form 1120-S income tax return, check the "Name Change" box. Write the new full name of the business. List the DBA name on the form’s "Name" line. Like other incorporated businesses, S corps register DBAs in most states. An S corporation places part of its operation under a DBA to distinguish from others. For example, a restaurant adds cuisine specialty in the name.
Final Note on Adding DBAs
You can add a DBA to raise brand visibility, attract customers, and allow targeted marketing. It is straightforward. File necessary forms and fees. Comply with regulations. Use multiple DBAs for one LLC.