The Different Advantages of Doing Business As (DBA)
When talking about DBA, this is the name of a business that goes by which can be recognized easily but does not include the legal name. The case of filing for a DBA can in fact help in keeping the process of starting out a new business simple and reducing the start-up costs. It means that there’s no need to keep up on the formalities and on the requirements when it comes to maintaining a corporation or an LLC.
DBA is also known as “Doing Business As”, which is a fictitious name of which the business goes publicly. This, however, does not include the legal name. Another thing about DBAs is that these are not business entities. If you will, however, register the DBA with a relevant local government agency, it can offer flexibility and also streamlines the business operations. A good example, in this case, is a fictitious name can make assets prone to abuse unless the business will be organized as an LLC or a corporation.
Another thing about DBA is that it is a valuable way to making sure of your right as a business owner, but such a concept is usually misunderstood. To protect your trademark rights and your intellectual property, see to it that you understand the limits and value of DBA. Some of the advantages of DBA are as follows:
It is Low Cost
A DBA will help in setting up your business alias in a way that’s inexpensive. When the fictitious names have been registered with other local authorizing bodies, it will be the legal name of the business. However, you should take note that specific filing requirements vary by state and by local jurisdictions.
It is Versatile
When you have established an entity like a corporation, you will be able to use fictitious names rather than having to create new entities. This can be done by registering the fictitious name of every new business. The original business will then serve as the hook for your satellite businesses to grow.
It has Protection on Privacy
The registration process of DBA is valuable for partnerships as well as sole proprietors who wish to not have the individual name on public-facing materials. This will help in protecting your privacy.
It has Flexibility
The fact that state laws will need a business to work under a distinguishable name in state boundaries to avoid the cases of confusion, your business name may not be made available in states to where you wish to expand with. In this case, registering a fictitious name will help in solving such problems where it allows the expansion to markets where the legal name of your business is being used already.
It has Value
The use of a fictitious name will help a business in creating brand awareness through making this easier for them to market under a DBA that’s catchy and in selling to retail stores and not having to lose the name rights to the business.
It is Affordable and Easy
Another thing about DBA is that it is easy and affordable to file. This gives you flexibility when you are a start-up or expanding business. A good example, in this case, is when your company is going to start different business activity, you could file easily for a DBA under the same LLC.