In order to have a successful startup business, then you need to consider the following:

So what is it?

TRUiC explains that a DBA is a term that stands for ‘Doing Business As’  and the following would then be either your assumed name, trade in name or fictitious. So whether you have an existing company or a startup company, you can choose a unique name that stands out for your business. An easy example is an author that uses a fictional name as a sole proprietor. However, you have to keep in mind that a DBA doesn’t mean that it is a partnership or a corporation. In order to get it you need to fill out a form online and physically, depending on which state you live in. 

Why should I get it?

Setting up a DBA is an important step for the business and should be done carefully.It can be used as a clever tool for marketing and it is what can also make your name stand out to competitors. It can also stand out to customers if it’s a memorable name.  However, if the DBA that you choose is too similar to another name for a business, then it is most likely it will be prevented by the governmental laws that have been applied in your state. A DBA can cost anywhere between $10 to $100 dollars, but this also depends on the state that you live in.

What makes it different from LLC?

LLC stands for limited liability company and it can provide your company limited liability protection. However, if you get a DBA, you have to bear in mind that it doesn’t offer limited liability protection. Think of DBA being a nickname for your business, whereas LLC is what the business is really called. LLC can protect your assets and can help your business from being sued. An LLC can be your company name that is listed with corp at the end for example.  Your DBA however, can have the word Inc at the end.

Can it be renewed?

Your DBA can expire over time. However, the great thing about getting a DBA is that it can be renewed as many times as you want it to. In order to renew it, you just need to fill out the form and pay a fee according to the state that you are in. You can also trademark your DBA and by doing this, you can provide protection for your DBA. 

What else do I need to do?

You would need to set up a bank account if you wish to accept payment under your DBA name. There are many reasons why, but the two most important to consider is to keep customer satisfaction and show loyalty, plus it would also help maintain your costs and bookkeeping for your company. In order to set up a bank account it is necessary to have your DBA paperwork and EIN paperwork from your main business entity. It is also best to speak to your bank first, in case they require any further paperwork. 

You do not need to file a tax return with your DBA, however, any loss or income that you receive through your business will be considered a tax liability and it will be calculated that way.

Is it worth it?

Yes, getting a DBA is worth it and can be an easy procedure to do.Think of getting a DBA as a positive asset for your business, in order to attract more intel. If you want to extend your service or you have products as an extra line of business, then a DBA can help for your business. In order to set it up you would need to go through a filing system. In order to check the steps on how to do this, have a look at the TRUiC guide on Startupsavant.