Hi! I'm Dane Carlson, and welcome to the Business Opportunities Weblog. I've been publishing this website, by myself, and sometimes with the help of others for over twelve years now. You'll notice two things about this site right away:
In addition to all of the other legalities and technicalities you face as a prospective business owner as you get their company off the ground comes the need to decide whether or not to establish a Doing Business As name. There are actually several myths and misconceptions that have clouded the judgment of many business owners and aspiring entrepreneurs in regard to this registered name that need to be addressed and rectified.
It’s a Requirement Even When Using Your Name
There are quite a few business owners who will register the Doing Business As name simply as their own name. Based on this belief, Bill Doe would need to register a DBA for his restaurant, “Bill Doe’s Pizza Shop.” However, this is actually a misconception. If you are using your full name (first and last) within your business name, you don’t need to register a Doing Business As name. However, if you are only using your first name (Bill’s Pizza Shop), or if you have used your last name to create a group (such as The Doe Group), then filing a Doing Business As name is required, according to Small Biz Trends.
Not Needed for an LLC with Different Business Name
If you established your business as a sole proprietorship under one name but now want to form a corporation or LLC under a different name, you will be required to file a registered Doing Business As name accordingly. It doesn’t matter if your original business was named after you or not; making this type of transition under a different name requires you to formally notate that through filing a Doing Business As name. This also applies if you have decided to expand your operations into other fields or markets and have slightly modified your business name to reflect your new venture. For example, Bill Doe would need to file for a DBA when establishing “Bill Doe Pizza Shop and Bakery, LLC.”
Only Use It on Your Business License
Another misconception is that the registered Doing Business As name only has to be used on official paperwork and forms related to the business, such as licenses and certifications. It is imperative for you to consistently use your Doing Business As name whenever the need to do so presents itself even if it may seem unnecessary or insignificant. By filing this registered name, you are literally stating that you will be doing business as that particular name whether it is on a state-issued license or a company invoice. All of your correspondence, marketing tools, and signage must consistently reflect the Doing Business As name that has been registered and filed for your business.
You Are Required to Use Your Social Security Number
Even though you can use your social security number when registering your business entity, it is not necessary to do so. Whether you are filing a DBA or not, you can register for a tax identification number (otherwise known as an EIN) with the Internal Revenue Service and use that number instead. Keep in mind that you may be required to provide documentation proving that you are not liable for any business taxes or expenses under your Social Security number, because they want to make sure you are not registering for an EIN as a way to escape liabilities and charges that have already been filed against you.
There are even some instances in which your Social Security number would not suffice at all even if you did register your business with it. For instance, quite a few banks and other financial institutions will only allow you to establish a business account or qualify for a business loan if you have registered for an EIN, according to Inside Business 360.