DBA is an abridged form of ‘Doing Business As’. DBA is a legal term and usually it’s used for fictitious, trade or assumed name of a business. In fact, it’s a sort of declaration that lets other businesses and persons know that you have got another trade name for business in a legal way. Different businesses can perform variety of business related things with that fictitious or assumed name. Businesses with that name are allowed to have and make payments using that assumed trade name. Apart from this, they are also allowed to advertise and open bank accounts with that name. Scams and frauds can also be avoided by using that name as you properly document the things to avoid any illegal activity.
Most people are not yet fully aware of the importance of filing a DBA for a business and they often ask why do businesses need to file DBA. Filing a DBA becomes essential for several reasons as there are some cases in which filing DBA can be very effective for some business. For example, those running a business with sole proprietorship can use and display the name of the business instead of their own name. In the same way, it’s not required to have some formal entity just as corporation, partnership or even LLC. In lieu of getting several business entities, other legal entities can be used for multiple businesses.
DBA filing is a kind of statement that is widely used in Franchises related businesses and filing DBA for such businesses is very, very important. Those who want to establish a franchise setup can run the business using their brand name and besides these brand names they also have their own names.
It’s also true that a considerable number of business owners consider DBA filing a very time consuming and irritating task that requires lots of efforts and time. Filing DBA is not that tough however. There are several online sources which can help you do the things in a lot more efficient manner and from the comfort of your sofa. Just answering the given questionnaire is all that you have to do. Then the filled questionnaire is reviewed by the authorities and the next processes take a start. However, there are some businesses in which the owner of some business has to issue a notice for showing their intention of operating a business with an assumed name. Especially, business owners from California are required to make an announcement of it in the newspaper.
LLC formation and DBA filing can be become trouble free tasks by having a better understanding of these procedures. Different online sources are offering almost all kind of information relating to DBA filing and LLC formation. Getting a DBA and utilizing it can become a very help tool for advertising and branding of some business. You need to follow certain steps for filing a DBA in an appropriate manner.