Overview
DBA is some kind of labeling that allows you
to run your business under an assumed name, which is the company name
that you choose. DBA stands for "doing business as." Filing a DBA is not
mandatory; however, many companies prefer to file a DBA just in case
another company is using the same name as you.
How it Works
The first step you need to take to file a DBA is to contact your
local county clerk's office. This is where most of the DBA filings are
done. They will also inform you if you are required to contact anyone
else. It is necessary for you to file something called an Articles of
Amendment separately if you do not want anybody else to use your DBA
title. The county clerk will also be able to guide you on where the
state offices for your filing a DBA are located. There are many
companies that help in filing a DBA. Filing a DBA is actually simple.
People who are not aware of this think that it is better to get in touch
with such companies. These companies will charge a fee to file your
DBA.
Benefits
A company can benefit in many ways by having a DBA label. Nobody else
in the state can run his or her business under the name that you have
filed. The main benefit of a DBA is that you can save a lot on start-up
costs. A sole proprietor who files a DBA can get a business phone
listing and a business checking out under the assumed name. For
instance, if you are a graphic artist called Beth Beadst who runs his
own business, it may be valid in the state you live to name your
business "Beth Beads, Graphic Artist" or something similar without
having to file a DBA. However, if your business name is incomplete, say
it is just "Beth Bead" or if it is a business with no name at all in the
title, it will become necessary for you to file a DBA. Filing a DBA is
better than creating a completely different business entity such as a
corporation or a partnership. A DBA makes it possible for you to start a
completely new business and run it like an expansion of your business
entity without incurring extra costs.
Costs
The costs that you would incur for getting a DBA will vary with the
state. Most states charge somewhere between $10 and $50 for a DBA. Thus,
DBA is one of the lowest yet beneficial business-related expenses that
you would incur.
Timing
The best time to file for a DBA is when you start a new business or
when you have established your ability to do business as your company
name right from the beginning. You can also get a DBA if you are
currently owning a corporation, and you want do your business under a
different name.
