When you are just starting out and incorporating your business. There are plenty of terms you come across, which make very little sense. One of such is DBA. If you have been researching online, you might have come across this term quite a lot.
But many people don’t know what it means, and what significance it holds for your business. So in this post, we will discuss DBA, whether or not you should have it, and what are the advantages. So let’s roll.
First Things First: What is DBA?
Well, DBA stands for Doing Business As. Plain and Simple as it gets. In other words, it is a fictitious name for your business. The main purpose of a DBA is to protect the real identity of the business owner from the public. However, we shall not get into why you might want to do that. We will save it for later.
So DBA is just an identity you create for the public, which deals and runs your business. So now you know that what really a DBA is, you might be wondering whether or not you need it? And if you are a new business owner, and just starting out. It is a perfect doubt to have on your mind.
Do you Need a DBA?
Now there may be many reasons so as to why you may need to file as a DBA for your business. Let us discuss some cases, where it makes sense.
If you are a sole proprietor or in a partnership of your company. And your business name generally doesn’t involve your identity. It is a good decision to file as a DBA. Suppose if Mark Henry wants to open a business named as Mark’s Coffee. He might have to file a DBA. Again, that depends on the state laws you are in.
But it is always a good option to file as a DBA before beginning. On the other hand, if Mark names his shop as Mark Henry Coffee Shop, he doesn’t need to file as a DBA with reference to the laws in most states.
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The main principle behind is, that if your business name reveals your true identity, you might not need a DBA. And if does not, you might have to register a DBA. Again, this depends on the rules and regulations of your state. But it is considered a good option, to always go for a DBA, and let us discuss why is it so.
Advantages of a DBA?
Now that you have a basic idea, what DBA is and in what cases it might be required. Let us have a brief look at what all the advantages it has to offer to business owners.
Filing a DBA as a Sole Proprietor will let you run a business identity in a different name without having to register it as a separate identity, as an LLC. You won’t need to register a separate LLC to do that. So, it is a very affordable and cheap way to stay compliant with the rules and regulations and conduct your business.
On the other hand, if you own an LLC already. You can run multiple businesses in different names under that LLC using a DBA. So that you need not register them all as separate entities. Which will greatly increase the cost on your head.
And lastly, a DBA will protect your personal identity from the public. It can prove to be beneficial and help to secure your privacy. As in today’s world, privacy has really become a challenge to obtain. With DBA you are secured and ensured that your personal identity is not at risk.
Where to Get your DBA Today?
There are many services which can hire you your DBA within a few days. And one such service is Swyft Filings. They aim to provide the best of the services to their customers. You can check out the full Swyft Filings Review about them here. There are also other services, but I think Swyft Filings is pretty solid when incorporating a business or applying for other licenses such as the DBA.