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DBA
A DBA (also known as a "sole proprietorship",
"Doing Business As" , or a "Fictitious
Name")
is a business that is not separate
from its owner, merely a different name that the business
owner operates under. The owner is personally
liable
for the company and its debt; all income is added on
the owner's personal tax returns (pass-through taxation).
If there is more than 1 owner, than the business is
classified as a "Partnership".
PROS: Easy to setup, easy to maintain.
CONS: Owners are personally liable for the company and its debt ( you could lose your
house, cars, personal assets, etc.) in a lawsuit.
Usually not recognized at the State level, only in your
city/county.
No corporate "prestige" of having the "Inc."
or "LLC" attached to your name. LLC's have
primarily replaced DBA's as the entity of choice for
even the smallest businesses.
How to get Started: Prepare and file a DBA
application at the city or county where you intend
to do business. Some
jurisdictions require a separate publishing in a newspaper
that notifies the public of your intent to "do
business as" another name.
Do I Need a DBA?
A DBA serves two purposes:
1. If you are starting your business as a sole
proprietorship or a partnership, then you will
need to file a DBA so that you can "do business
as" a
name other than your real name.
For example, if you are named John Smith and wanted
to operate as "JS Enterprises", you would
need to file a DBA so that you can a) use and operate
under that name and b) open a company bank account
to accept payments made to "JS Enterprises".
2. If your business is already set
up as a corporation or an LLC, and you wanted to do business
under a
different name then your corporate or
LLC name, you will need to file a DBA.
For example, if your company name is ABC Services,
LLC and you wanted to operate as "QuickKleen Services",
then you would file a DBA. If you wanted to operate
only as "ABC Services, LLC", then the
DBA would not be required.
How do I Get a DBA?
DBA's are typically filed at the County Clerk's
office. Getting a DBA or FBN can be a complicated
task. There are thousands of
counties in the United States and each has
its own particular filing requirements.
File
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