Starting a business requires making several crucial decisions, and one of the first things you’ll need to do is decide on a business name.
If you’re using a name that’s different from your legal business name, you’ll need to file for a “Doing Business As” (DBA) registration.
While filing for a DBA online seems like a straightforward task, many entrepreneurs make simple mistakes that can delay the process or lead to costly consequences.
If you’re in the process of registering your DBA, you’ll want to avoid these common pitfalls. Keep reading for expert tips on how to get your DBA right the first time.
Why Is DBA Registration Important?
When you start a business, you might choose a name that better reflects what you do or appeals to your target audience. A DBA registration service allows you to legally operate under that business name. It’s essential to file your DBA because it lets customers know who they are doing business with. Also, it helps protect your business and ensures you comply with state and local regulations.
But here’s the catch—filing your DBA isn’t as simple as just picking a name. Many business owners get caught up in the process and make errors that could cost them time, money, or even their ability to operate under their desired name.
Common Mistake #1: Choosing a Name That’s Already Taken
One of the most common mistakes when filing for a DBA is selecting a name that’s already in use by another business. While it might seem like the perfect name for your company, it’s crucial to do thorough research before filing your DBA.
How to Avoid This Mistake:
Start by searching your state’s business registry to check if the name is already in use. Many DBA filing services offer name search tools to help you determine if the name you want is available. Make sure your name doesn’t infringe on trademarks or copyrights by performing a trademark search as well.
Common Mistake #2: Forgetting to Check Local Regulations
Different states and even local governments have varying regulations when it comes to DBA registrations. Some areas might require additional documentation, specific naming conventions, or extra fees for local filing. Failing to check these regulations can cause unnecessary delays.
How to Avoid This Mistake:
Before filing, research the specific requirements for DBA registration in your state and locality. Some states may require businesses to publish their DBA name in a local newspaper, while others don’t. Consulting a DBA filing service that knows the rules in your area can save you from making mistakes.
Common Mistake #3: Not Updating Your DBA When Necessary
If you change the name of your business or switch locations, you may need to update your DBA registration. Many businesses forget to file an updated DBA when significant changes occur, which can cause legal problems down the line.
How to Avoid This Mistake:
Whenever there’s a change in your business name or structure, make sure to update your DBA registration. Keeping your DBA up to date ensures that your business is legally compliant and protects you from potential fines or confusion with customers.
Common Mistake #4: Using a Name That Doesn’t Follow State Guidelines
Each state has its own set of rules regarding what you can and cannot include in your DBA name. For example, many states prohibit the use of words like “bank” or “trust” unless your business is a financial institution. Some states might not allow words like “incorporated” or “corporation” in your DBA if you are not registered as a corporation.
How to Avoid This Mistake:
Research your state’s specific naming rules before submitting your DBA application. Most DBA filing services include information about the types of names allowed, so make sure you check for restrictions to avoid submitting a name that won’t be accepted.
Common Mistake #5: Failing To Keep Track Of Renewal Dates
Once your DBA is approved, it’s essential to remember that DBAs often need to be renewed periodically, typically every 5 years. Failing to renew your DBA can lead to the loss of your registration and potential legal complications.
How to Avoid This Mistake:
Set reminders to renew your DBA registration before the expiration date. Many DBA filing services offer renewal reminders or services to help you stay on top of important deadlines. By planning ahead, you can avoid unnecessary fees or complications down the road.
How To Get A DBA Right The First Time
Now that you know the most common mistakes to avoid, you might be wondering how to get a DBA without these hiccups. The best approach is to use a professional DBA filing service. These services simplify the process by guiding you through each step, ensuring all paperwork is filled out correctly, and helping you avoid mistakes.
Why Use A DBA Filing Service?
Using a DBA registration service takes the guesswork out of the process. These services typically provide helpful features like:
- Availability checks: Confirm that your desired business name is available in your state.
- State-specific guidance: Get help with understanding and following local and state requirements.
- Filing assistance: Ensure your application is filed correctly the first time.
- Renewal reminders: Stay on top of important renewal deadlines, so you don’t lose your registration.
Conclusion:
Filing your DBA is an essential step in setting up your business, but it’s important to get it right. By avoiding common mistakes, such as choosing a name that’s already taken or failing to understand local regulations, you can avoid unnecessary delays and headaches. Using a reliable DBA filing service will ensure that you’re compliant with all the necessary legal requirements and allow you to focus on growing your business. Keep these tips in mind, and your DBA filing process will be smooth and efficient.
Let a professional service handle the details, so you can focus on what really matters—growing your business and serving your customers.
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