Legal Entity Name Vs Dba
The disadvantages of a DTA most often occur when used in place of an LLC or other legal entity. DBAs and legal form are not mutually exclusive, so to avoid these pitfalls, just make sure you have a legal entity before filing a DBA. For example, Walmart`s trade name is Walmart, but the company`s legal name is Wal-Mart Stores, Inc. (which will become Walmart, Inc. effective February 1, 2018). Registering a DBA generally does not give you the exclusive right to use your company name. Forming an LLC gives you more protection by ensuring that no other business entity with the same name as your company can be created in your state. But neither an LLC nor a DBA will give your name the level of protection you would get with a government-registered trademark. Many small business owners looking for alternatives to setting up an LLC often encounter DBAs (Doing Business As), also known as fictitious trade names or trade names.
While a database administrator may be right for your business, it`s important to understand how it works and when it should be used. DBA is simply an acronym for «doing business like». It is sometimes referred to as a trade name, a fictitious trade name, or an assumed trade name. Filing a DBA allows business owners to use a name other than their legal name to manage their business. Submitting a fictitious name can be beneficial for the business, as it can help develop a recognizable brand presence with a descriptive and creative business name. If all this sounds tedious and you want to use a fictitious name without registering, think again. It is illegal to operate a business under an unregistered alias. Some states impose severe penalties for failure to register a DTA name, including civil and criminal ones. As mentioned above, database administrators are also useful for franchise owners who borrow well-known national or regional brand names while owning the franchise location themselves. In addition to sole proprietorships and partnerships, database administrators are also commonly used by franchised business owners. Let`s say a local business owner wants to open a McDonald`s franchise. This person can legally register the company as Amy`s Food Group LLC, but use a DBA to operate and market under the McDonald`s brand.
Think about how a fictitious name can help you build, plug in, or even simplify the way you work. You can consult a lawyer or business consultant to think about the benefits of a DBA. And make sure they are properly filed and renewed. One way to simplify the DBA filing process is to use a legal filing service to ensure you perfectly meet the needs of your county and state. Whichever method you choose, you will not be able to use your database administrator until you obtain a fictitious name certificate. Disclaimer The information provided is not intended to provide legal or financial advice. It is only used for training purposes or for the exchange of information. It is not a substitute for consulting your legal or financial advisors for professional advice. Companies may use their trade names for commercial or promotional purposes. Think of it almost as a nickname for the company. Choosing a business name under which to operate is an important step.
It takes trial and error, patience and time to choose the right name. Make a list of business names you like and do your homework to see if they can be used. If the name is already taken, go back to the drawing board. If your company is an LLC or a corporation, you have some legal protection. However, these protections can be invalidated if you work under a different name and have not registered a database administrator. For example, Gordon Green Thumbs may have integrated McGee`s, but if he signed a customer contract under Green Thumbs (or any other variant), that contract cannot stand in court. When it comes to what to call your business, you need to know if it`s more beneficial to use your business name or business name. Learn the difference between the company name and the business name below.
If your company has an «Inc.» or «LLC» at the end, you may find that you drop these letters when promoting or discussing your business. In order to protect yourself and your business name and comply with legal requirements, you will need to complete additional paperwork to cover all the names you use. The legal name of a business can vary depending on the type of business structure. If you operate a sole proprietorship, the official name of your business is your full name (for example, Jason Williams). You can include other words with your full name (for example, Jason Williams Insurance Corporation). However, you will need to provide your full personal name if you have a sole proprietorship. If you`re starting a new business, you`ll need to choose a name that can be used in your state and doesn`t go against another company`s brand. For example, if your customers pay you with checks, registering both names means you can open a business checking account under both names and your customers can use your legal name or DBA name as the recipient. This is especially handy if your customers don`t know your legal name. In some cases, you do not need a database administrator if your company name is a combination of your name and a description of your product or service.
In Gordon`s case, if his company was called Gordon Flanders`s Gardening Services, he would not need a DBA. But if it`s just his first name (i.e. Gordon`s Gardening Service), then a DBA is required because it`s not his full legal name. This allows you to expand your services and do business under a different name, while still being protected by your existing LLC. Example: «Joe`s Handyman Services LLC DBA: Joe`s Mechanic Services». This indicates that your company is able to offer multiple business units under the same LLC name. DBA stands for «doing business as». A DBA is an official fictitious name, an assumed name or a business name that allows you to operate your business under a name other than your legal name. At the very least, try to pronounce your business name clearly, memorably, and easily, and think about the impressions your name leaves on a potential customer. If you are a sole proprietor, filing a DBA is the easiest and most cost-effective way to use a business name.