Depending on the state that you operate your business in, forming a DBA can be done for a number of reasons. If you decide to register a DBA you can do business under a different name, allowing you to not use your personal name or your formal business name. Additionally, as a sole proprietor, if you register for a DBA you can open a business bank account, and as an LLC or Corporation, you can choose to use another name too. This article will take a closer look at what a DBA is and the costs of forming a DBA.
What Is A DBA?
‘DBA’ stands for ‘Doing Business As’, other names for this can fall under ‘fictitious name’, ‘trade name’, or ‘assumed name’. As the term implies, it is any company that uses another name when doing business, which is a different name to the official and legal name when the company registered as a business.
There are various reasons why a company will use a DBA, let’s briefly outline a few:
- To build a specific brand as part of the company.
- If a company sets up multiple businesses that fall under one LLC a DBA can be used for each business.
- It can offer privacy for the business owner if it is a sole proprietorship or partnership; the owner won’t have to use their last name.
- Online domain name availability.
The Costs of Forming a DBA
When looking at the costs of registering a DBA it’s important to remember that every state will have different regulations and prices, so the first step is to determine what state your business will operate in.
Below is an overview of what will contribute towards the potential costs while setting up your DBA.
When you first want to get your DBA registered with your state you will need to pay for filing fees, these can vary for every state, a general estimate of the costs can fall anywhere between $10 to $100.
You may wish to seek additional assistance when filing your DBA; a service provider can offer to take care of all the filing for you, however this will also add to the costs.
MyCompanyWorks offers their professional services for $99, plus state fees.
After every few years (one year to five years) your DBA will need renewal, usually the same as the application price.
Trade Name Amendment
In some instances you might need to make changes to your trade name when you registered. States like Arizona will require a $3 and Colorado will require a $10 fee to make trade name amendments, therefore be sure to double-check that your name is correct before registration.
Trade Name Withdrawals
If you want to withdraw your DBA some states will require a fee, for example Colorado will charge $10.
If you need to file additional registrants / business names when filing your DBA there might be extra fees involved, for example, California will require a fee of $5 for any extra business names.
Some states will require certified copies of the DBA name search, for example, in California it will cost $2 per document.
Some states will require a company to publish a statement of the new DBA in the local newspaper, in states like California it will be for the duration of once a week for four weeks.
The costs will be different with each newspaper, ranging anywhere from $25 to $130, more well-known newspapers might charge more, for Sundays fees will be $575 and Non-Sundays fees will be $491.
Setting up your DBA will require additional costs that might add up beyond just the filing fees, visit TRUiC’s online guides for more information of what you will need to do to set up your DBA and what the costs are according to your state.