DBA & Sole Proprietorship Knowledge
What is Assumed Name?
A fictitious business name, assumed business name, or DBA (doing business as), referred to as allows you to legally do business as a particular name at minimal cost, and without having to create an entirely new business entity. You can accept payments, advertise, and otherwise present yourself under that name.
DBAs are legal requirements for sole proprietors, partnerships and corporations not operating under their legal names. Although using a DBA is a legal requirement, please note that it is not the same as registering a trademark you may still need to obtain a business license, and registering a DBA will not prevent someone from using the same business name within the state.
DBAs are legal requirements for sole proprietors, partnerships and corporations not operating under their legal names. Although using a DBA is a legal requirement, please note that it is not the same as registering a trademark you may still need to obtain a business license, and registering a DBA will not prevent someone from using the same business name within the state.
What is the Sole Proprietorship?
Sole proprietorship is a company with one owner that is not registered with the state as a limited liability company (LLC) or a corporation. In some states, a sole proprietorship is referred to as a DBA (doing business as), as in "José Smith, doing business as Smith Heating and Air Conditioning."
Establishing a sole proprietorship is cheap and relatively uncomplicated. You don't have to file any papers to set it up you create a sole proprietorship just by going into business. In other words, if you'll be the only owner of the business you're starting; your business will automatically be a sole proprietorship, unless you incorporate it or organize it as an LLC. Of course, you do have to get the same business licenses and permits as any other company that goes into the same business
Establishing a sole proprietorship is cheap and relatively uncomplicated. You don't have to file any papers to set it up you create a sole proprietorship just by going into business. In other words, if you'll be the only owner of the business you're starting; your business will automatically be a sole proprietorship, unless you incorporate it or organize it as an LLC. Of course, you do have to get the same business licenses and permits as any other company that goes into the same business
Advantages of Filling Assumed Name Certificate, Fictitious Business Name or DBA
When you are starting up, you definitely want to keep costs low and the process simple. DBA Filing helps you to do that. You do not have the ongoing maintenance or the costs associated with forming a corporation or LLC. Once your business is running profitably, you may want to convert it to a corporation or LLC.
- It allows you as a sole proprietorship to use a business name rather than your personal name.
- It allows a single legal entity (corporation, LLC, etc.) to operate multiple businesses without creating a new legal entity for each business.
Disadvantages of Filling Assumed Name Certificate, Fictitious Business Name or DBA
A dba, Assumed name certificate, Fictitious business name or Trade name is just a certificate you are legally required to file. It helps you open a bank account and be legal but it does not protect your personal assets because the business entity is still a sole owner. A sole owner is liable for all civil or financial liability that the business incurs.
Should you file dba, Incorporate, or Form an LLC: Generally, if you are one person, and have a lot of personal assets, the best choice would be to incorporate or form an llc, You will be protected. If you don't have a lot of assets ( such as a home and an expensive car ), you may want to just want to appy for DBA . A corporation, depending on the state you want to incorporate, or form an LLC, may cost $100 to $200 more than a dba but it protects your personal assets. A dba does not protect you.
You can only operate your business in the county or city you file dba, for each addtitional county or city you have to file seperate dba.
Should you file dba, Incorporate, or Form an LLC: Generally, if you are one person, and have a lot of personal assets, the best choice would be to incorporate or form an llc, You will be protected. If you don't have a lot of assets ( such as a home and an expensive car ), you may want to just want to appy for DBA . A corporation, depending on the state you want to incorporate, or form an LLC, may cost $100 to $200 more than a dba but it protects your personal assets. A dba does not protect you.
You can only operate your business in the county or city you file dba, for each addtitional county or city you have to file seperate dba.
