Learning The Secrets About
When you are starting a business the idea is to keep the costs as low as possible and having a DBA can help you attain that. A DBA is a name that a business goes by that is easily recognizable but does not include your own. Filing for DBA when you are starting your business means you will not have to keep up with the formalities involved in running a corporation, although you will be required to change to that once your business is running and profitable. There are various advantages and benefits of filing DBA and they include the ones discussed below.
One benefit of filing for DBA is privacy; is very useful for sole proprietors and people in business partnerships who want to keep their legal names from the public eye. Since DBA allows you to operate a business under a name that is not, it helps in keeping your privacy as well as personal life from the business one. Filing for DBA gives you versatility in the event that you are already operating a different entity with your legal name. You can maintain operating the other entity with your legal name while you fictitious names for the new businesses.
Filing for DBA can also be a way of complying with the law; in some states businesses are required to file DBA and operating without it is termed illegal. So filing for DBA enables you to comply with the law while you also get some legal protection which is very important should an issue arise requiring you to go to court. Filing for DBA is also cost-effective and once the fictitious name you are going to use for your business has been filed with any authorizing body it becomes the legal name of your business.
Filing for DBA also shows the credibility of your business and eliminates the problems that you are likely to run into as a sole proprietor or freelancer. When you give your business a DBA it will appear more credible than if it had just your name and this can help you in winning contracts and other business opportunities. This is usually because an official business name appears more legit than an individual name. Filing for DBA gives you flexibility; by filing a fictitious name, you have the opportunity to expand your business into new territories where the official and legal business name is already being used.
If you are considering setting up a business bank account, it might be a bit challenging under a sole proprietor or freelancer name. By filing for a DBA for your business, you are making it easier to set up a business bank account. Besides setting up a bank account, having DBA allows your business to be marketed under a catchy name. If you have been considering filing a DBA for your business, they are affordable and easy to file as well as being suitable for any startup you have in mind. These are some of the benefits of having DBA for your business.