Do you know what an assumed name is? Some small businesses may decide to file for an assumed name for their small business. Once you know what an assumed name is and its benefits, you may decide to file for this official registration.
What Is An Assumed Name?
An assumed name, commonly referred to as a “Doing Business As” (DBA) name, allows a business to operate under a name different from its legally registered name. This practice is especially useful for sole proprietors and partnerships that want to do business under a more marketable name without forming a separate corporation or LLC.
Registering an assumed name is also a strategic approach for companies looking to branch into new markets or product lines without altering their formal business structure. This flexibility makes assumed names a popular choice among entrepreneurs looking to expand their reach and adapt to diverse business environments.
What Is An Assumed Name Certificate?
An Assumed Name Certificate formalizes the registration of a business’s DBA (Doing Business As) name. It’s a legal document that declares the public use of a name other than the business’s legally registered name. This certificate is crucial for compliance and transparency, allowing customers and regulators to identify the true ownership of a business operating under a different name.
Why Would I Need An Assumed Name?
Here are some common reasons why small businesses would complete assumed name registration.
- Conducting business under another name. A small business planning to do business under a name which is not the same as the business owner’s name must have an assumed business name certificate or DBA. Obtaining this registration allows business owners to accept money and conduct business under this name.
- Open a business bank account. Most financial institutions, including banks, require a certified copy of your assumed name before you can open a business bank account. After opening a business bank account, you may start collecting checks and payments under the company’s DBA.
- Discouraging competitors from using the name. Does another business in the same state want to use your assumed name? They cannot use it since you already have the name in use.
- Public marketing and advertising. Once a small business has its name registered, the company may begin publicly marketing and advertising.
What Else Should I Know About Assumed Names?
Obtaining an assumed name is not the same as filing for trademark registration.
Both an assumed name and a trademark are business names. However, an assumed name only grants the owner rights at the state level. A trademark is an original and unique logo, design, symbol or phrase. This mark helps customers identify the brand and differentiates the business from its competition.
Entrepreneurs who plan to protect their intellectual property at the federal level are advised to file for trademark protection.
How to Get a Certificate of Assumed Business Name
Obtaining a Certificate of Assumed Business Name is a straightforward process, but it requires careful attention to detail to ensure compliance with local regulations. The steps to secure this certificate involve interacting with local government offices, preparing for some expenses, and timing your application correctly to align with your business plans.
Reach Out to Your Local Office
The first step in obtaining an Assumed Name Certificate is to contact your local county clerk’s office or the appropriate state agency. This office handles the registration of business names and can provide the specific forms and guidance needed for your application. It’s important to gather all necessary business information and ensure that your desired business name is not already in use. The local office will also inform you about the process, paperwork, and any legal nuances specific to your locality.
Be Ready for a Filing Fee
There is typically a filing fee associated with registering an assumed business name. These fees vary depending on your location and the type of business structure you have. It’s essential to budget for this expense as part of your business’s initial costs or when planning a rebranding. Make sure to confirm the exact fee amount and acceptable payment methods with the local office to avoid any surprises.
Start as Soon as Possible
When planning to use an assumed business name, it’s advisable to start the registration process as early as possible. This allows you to secure your preferred name quickly and helps avoid delays in launching or rebranding your business operations. Early registration ensures that all legal and promotional activities can proceed without interruption, under the name that best fits your business identity.
MyCorporation can help you file a DBA! Pick the form of protection best for your small business. Then, let us help with the filing. Call us at 877-692-6772 or visit us at MyCorporation.com.