The business owners will need to decide whether an LLC's structure is beneficial to them. Expanding and selling a business , as well as generating funding , is also easier with an LLC. Also, a business owner does not receive personal liability protection from a DBA. An owner of an LLC, on the other hand, is not connected to the company in terms of liability. However, he or she is not regarded as a separate taxable entity and, therefore, must pay taxes on the LLC's income on an individual level.
As an LLC, owners can choose a corporate structure such as an S-corporation that receives special tax treatment. And last, but not least, in most states where you form an LLC, there is a requirement to file an annual report and in certain circumstances pay an annual fee. Whereas, fictitious name certifications, which provide you with the right to use a DBA, typically has a one-time filing and fee in most states. Yes, absolutely. If you intend to have additional brand names for your business, create a website with a name that differs from your official, legal name or create other intellectual property, there are other steps to consider taking.
You also may find our Starting a Business Checklist useful. I have two questions. I am a former county employee, and now work from home as an advocate. I consider the service I provide to be similar to a consultant. Also, my son wants to obtain a wholesale dealer license. I am a bit confused about this. Thank you so much for your assistance. The information on this website is extremely helpful! Nicole: This is a great question to ask…your tax advisor and attorney.
It may also help with taxes, but also requires additional things you must do to make it effective for that purpose. Keep it simple. Steer clear of language and cultural taboos. Realize that trying to be too witty or edgy with your name could backfire.
Not everyone has the same threshold of tolerance for controversial references or the same sense of humor. Before locking in a name, ask for feedback from friends, family, and members of your target market. This can help you avoid driving away customers.
About the Author: Nellie Akalp. Nellie Akalp is an entrepreneur, small business expert, speaker, and mother of four amazing kids. Akalp is nationally recognized as one of the most prominent experts on small business legal matters, contributing frequently to outlets like Entrepreneur, Forbes, Huffington Post, Mashable, and Fox Small Business.
A passionate entrepreneur herself, Akalp is committed to helping others take the reigns and dive into small business ownership. Through her public speaking, media appearances, and frequent blogging, she has developed a strong following within the small business community and has been honored as a Small Business Influencer Champion three years in a row. Related Posts. Hiring Family Members in a Small Business. How to Reinstate a Revoked c 3 Status.
Filing an Intent to Use Trademark Application. Generally, the function of the DBA or fictitious name is to show the buying public the identity of the business owner. It allows the public to know and have the contact details of the person handling the business.
A fictitious name has the same meaning as a DBA, and both terms are interchangeable. Here are some of the benefits of having a DBA in business:. Your business needs a DBA if it is operating under a name different from yours. For example, you don't need a DBA if your name is Patrick Munchy and you operate a mechanic shop under Patrick Munchy Auto Care as your name shows you own the business.
The same applies to a corporation operating different subsidiaries in multiple locations under different names. The corporation will need to file for DBAs for each of these businesses to show the public it owns the entities.
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