How important is filing a DBA
“Doing business as or DBA for short is a legal term often referred to as fictitious name, name or trade name. It is a statement of individuals and companies who have the ability to do business legally while using a fictitious name in a very easy and inexpensive way.
Filing a DBA can also accept payments legal entrepreneurs, open bank accounts, and advertise their chosen under fictitious names. With an assumed name may also prevent fraud since doing business using a name other than your legal name without the proper documents against the law.
So why would a business entity to a fictitious filename?
There are several reasons for this. First, when you are a sole proprietorship, you have the option of a company name in place of your own name. You don’t have to create a formal entity such as a corporation, partnership or even LLC. Legal entities can on the other hand, several companies do without various business entities.
DBA statements are typically used in franchising companies. Here, the franchisee doing business using the franchise ‘ brand name but at the same time, also has his own legal name.
Filing a DBA online is not as complicated as it seems. In most cases, all you have to do is to sit in the front of the computer, the questionnaire reply and wait to be evaluated and processed. However, in some countries, particularly in California and other areas, entrepreneurs are required to publish an announcement of their intention to operate in a fictitious name in newspapers on a certain period of time. Entrepreneurs are also forced to record the name in the Recorder of deeds. This aims to protect people against fraud and other legal issues that arise in the future.
Filing a DBA and the correct use of assumed names can be a powerful marketing and branding tool for companies. It is important that owners of companies understand the goal to maximize their use.
Ira is a virtual assistant and a freelance writer who loves writing, reading books and surfing the net. She is currently writing about insurance, online traffic schools and SEO.