Would you like to do business under a name which is different from your current business name? Small businesses can do this when they file for a doing business as name, or DBA.
What’s a DBA? This is a public registration of a name under which you plan to do business. If you plan to conduct business under a name which is different from your existing corporate name, you need to file for a DBA to identify the business entity. Here’s what having a DBA can do to benefit your business.
Create a Separate Business Identity
By creating a DBA, you may establish a separate business identity for customers and vendors. This allows your business to present itself in a professional light. While DBAs identify the business and claim its name, they do not grant exclusivity for the use of a business name.
If you file for a DBA, no other business on the state level may use this name. Let’s say you file for a DBA in California. No other business in California is using it, so you can file and register for the assumed name. This discourages any other California business from using this DBA. It allows you to protect your brand. Most states have laws which forbid businesses from registering names which are deceptively similar to another DBA in this state.
A DBA also goes by a few different names. Some of these include fictitious names, trade names, assumed names, or doing business as names. Check in with your local Secretary of State prior to filing to see which name a DBA goes by in the state you plan to conduct business.
Open a Business Bank Account
Opening a business bank account requires a few documents. One of the most common ones is an employer identification number (EIN). This is a tax ID. The IRS issues it to identify a small business. It is a requirement to open a business bank account.
Another requirement to open a business bank account is a certified copy of your DBA. Business owners may not use their personal bank accounts to issue or receive checks under their business name. However, you will be able to open a business bank account under the name of your business by filing for a DBA. This gives your business a separate bank account. It allows it to collect checks and payments under the name of the business.
Start Publicly Advertising Your Business
Once you register for a doing business as name, you can start publicly marketing and advertising your small business under this DBA.
Some states may require you to publish you’ll be doing business under another name in a local newspaper. Check in with your local Secretary of State to see if this requirement applies to your DBA. As you begin actively advertising and marketing the business, this increases the visibility of your business and allows you to expand your customer base.
File for a DBA with MyCorporation. Contact MyCorporation at mycorporation.com or give us a call at 877-692-6772.