What is a DBA (Trade Name)?
DBA stands for "Doing Business As" and is the registration of a fictitious business name under which people can operate their companies. Consider it similar to a branding singular for your business block. For example, if you wanted to name your store "Sunshine Boutique," but our companies legal was already named "Global Traders LLC", then the company would need a dba on the storefront.
Why Register a DBA?
So why bother with the DBA registration? In other words, it enables you to run your business under a name that is possibly easier to remember or market than the actual legal title of your business. For branding purposes, this is critically important. How are you going to pitch the thing if it is given a boring legal name, and what kind of lifestyle marketing will unsightly packaging invoke?
DBA Registration for Non-US Residents
Can the citizens of another country (non-USA residents) register a DBA in the USA? If you are a foreign entrepreneur wishing to open up your business or dawn upon the new break of establishing an enterprise, this is all available. However, the process can slightly differ from one state where you are planning to start a business. Although the above holds true in most states, there are exceptions to it and a few more hurdles for non-US citizens.
Prerequisites for Foreign Nationals
It is not that different from what US citizens have to do, but a non-US resident has an added few hoops to jump when you want your business name registered. You will need a US address (can be an actual one or the registered agent's) as your first step. You will also want to ensure that you have a valid passport as well as, in some cases., US Tax Identification Number (TIN)
Steps to Register a DBA
Registering a DBA is simple though it requires several steps.
Pick Your Brand Name:Pick a name that represents your brand and follows the law in the state you are operating.
Check Name Availability:Confirm the name has not been in use by any other business within that state.
12th Step is you file your DBA Application:Submit the necessary paperwork to the state or county office.
Notice of Publication (If Necessary):A few states may perhaps call for you to bill your registration in a local magazine.
File a fee:The entry is popular in different states, and the cost is also suitable for your area.
Get Your Certified:Final approval will award you a DBA certificate and the right to perform your business under the pack name is whole legal abilities.
Choosing the Right Trade Name
Importance of choosing the proper trade name More than just a name, it is the business' very first impression. Good trade names should be memorable, simple to spell, and describe your business concept. For instance, if you sell organic products then "Green Planet Goods" may connect more with your customers than something bland.
Are There Costs to Register as a DBA?
The price of filing a DBA is established by state law and can be anywhere between $10–$100. You might also have to pay for a Registered Agent and in some states, you may need to place an ad in the newspaper. You must account for these expenses in your budget to avoid any surprises later on.
DBA vs LLC: What Is The Distinction?
A DBA is Not a Legal Entity, An LLC (Limited Liability Company) Is Getting a DBA is just the equivalent of giving your business an alias. An LLC, however, gives you liability protection separating your business assets from the rest of their assets. For a non-US resident, DBA versus LLC will depend on what you want out of your business and the amount of legal protection necessary.
Maintaining Your DBA
Register the DBA and do not stop. That means registering it with the state you are doing business out of and paying a fee that they require for the registry, which usually lasts about 5 years…the cost varies per region Keep The Business In Good standing and Make Sure All Of Your Contracts Are Under A Trade Name By State Law. Failure to list these would leave the DBA in limbo: unable to operate, potentially leaving you vulnerable legally.
What Will Happen If You Do Not…
Doing business under an unregistered trade name is one of the harsh penalties. At worst, you lose a lot of money from fines and legal action; or in the fucking worst-case scenario: The government forces your business to shut down. It's the same as operating a vehicle without driving privileges; you place yourself in peril while also breaking the law.
How Long Does It Take?
The process to becoming a DBA also changes from state to state, but it usually takes one week or four of waiting. If you need your DBA fast, some states provide quicker services for an extra cost.
Common Mistakes to Avoid
3 Common mistakes Non-US residents make when registering a DBA
No Name Research:Neglecting to acknowledge potentially conflicting trade names may lead to delays or rejections.
Overlooking Renewal Deadlines:Failing to renew a DBA by the deadline could lead to it lapsing.
Not Seeking Legal Guidance:It's paramount that you speak with a legal professional to ensure you following all mandated state regulations.
