Imagine you have a great business idea, but your company's legal name doesn't reflect your brand or what you offer. That's where DBA comes in, a key tool to give your business identity and develop a better connection with your customers.
In this blog, we will explore what DBA means and the advantages of operating commercially under a different name than your legally constituted company. In addition, you will discover the strategic and legal benefits it can bring to your business.
Let's get started,
What's a DBA?
DBA or “Doing Business As” is the trade name under which a legally incorporated company will be known to its customers in the United States.
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Important: Having a DBA does not mean that it becomes a new company; on the contrary, it is an alternative name and, on paper, does not have any different impact from the legal name. However, you should know that when drafting official documentation of the company, such as contracts or tax returns, these processes must be done under the legal name.
What benefits come with having a DBA?
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Let's say you own a supermarket legally registered as “Martinez y Hermanos LLC”, but you want a name that is more attractive and easier for your customers to remember. You decide to operate under “Martinez Supermarket” because it sounds more commercial and is aligned with your business. To use this name in advertising, signage, invoices, and social media, you need to register it as your DBA (Doing Business As) and operate legally under that business identity.
Branding: Instead of operating under a generic or hard-to-remember name, you can choose an attractive and representative business name, which makes it easier for customers to recognize you and associate your business with trust and professionalism. In addition, a well-chosen DBA improves your social media presence, advertising and market positioning.
Advertising: Gain the trust of more customers through the promotion and advertising of products or services, generating a better brand perception. A clear and consistent brand in advertisements, social networks, and marketing strategies allows your business to stand out from the competition. In addition, consumers tend to trust companies with a well-defined brand name, which can translate into increased sales and customer loyalty.
Data privacy: If you register a DBA, you can operate under that name without having to disclose your company's legal name, which adds an extra layer of privacy. This is especially useful for sole proprietors or small businesses that want to separate their identity from their business, minimizing risk and protecting their legal information.
Legal compliance: Keep in mind that in some states, it is a mandatory requirement to register the DBA and verify that the name you want is not taken. This also protects your business identity, preventing other businesses from using a similar name and confusing your customers.
🎯 How to register a DBA?
The DBA must be registered with the Secretary of State or the local government entity by completing an online form and mailing the documentation by mail or in person.
To begin this process, please consider the following information:
The name is available in the state where you wish to register your DBA.
💡Search your state's Secretary of State website and take advantage of their online tool to verify trade names and see if the DBA name of your choice is available.
Complete the DBA application online or at the designated office to do so.
If you are in Massachusetts, go to gov.
If you are in Rhode Island, check with the Department of State.
If you are in New York, check with the Department of State.
The registration fee depends on the state and varies from $10 to $100 US. Remember that according to state laws, the DBA must be renewed after a certain period; check your state regulations.
If you have already incorporated your company and registered a DBA to operate legally, the next step is to optimize your business's management. At Universum, we offer POS solutions to help you grow and achieve your company's success. Our software and equipment will allow you to have control over your sales accurately, manage inventories, generate detailed reports, and perform all kinds of transactions efficiently.
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Disclaimer: The content provided in this blog is for informational and educational purposes only. It does not constitute legal advice. It is recommended that you consult with a qualified professional to ensure you comply with all of your state's regulations and requirements.
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