A fictitious business name or a DBA enables you to operate a business name under a name that is different than your government name. When you establish a business, the name of your business automatically defaults to your given or legal name. There are five reasons you may need a fictitious business name or DBA.
Low Organizational Costs
Creating multiple businesses or corporations can be expensive. Money must be spent building each new business as there are advertising costs, licensing, and other expenses related to company growth. A fictitious business name or DBA, on the other hand, is inexpensive to set up as it only costs between $10 and $50 in filing fees, depending on the location of the business. Some states do not have any filing requirements at all in which case the fictitious business name or DBA is completely free of charge. Each state has different requirements for filing so it is advantageous to check what is needed for your locale to avoid any legal trouble.
You Can Enjoy Versatility by Using Multiple Business Names
Fictitious business names enable you to expand your offerings and branch out without needing to establish a new LLC or corporation for each type of product or service. This is because you can create multiple fictitious business names for each branch of your business. For instance, if one part of your business specializes in cat behavior consulting and another part of your business specializes in dog training, each of these branches can be given a separate fictitious business name. Then your established LLC or corporation can serve as the anchor for all the company spinoffs that you create.
A Fictitious Business Name or DBA Offers Privacy Protection
If you want to protect your privacy, a fictitious business name or DBA will enable you to do just that. You can choose a business name that is different than your own to keep the public from easily discovering who you are. Fictitious business names or DBAs are particularly valuable for partnerships or sole proprietors who do not desire to have legal names on materials that are designed to be public-facing.
Fictitious Business Names or DBAs are Beneficial for Advertising
Catchy business names and slogans are excellent for building brand awareness and making sure your clients will always remember you. A catchy business name and slogan outlines your commitment and tells your customers what your business stands for. Your name and slogan will paint a clear picture of your business, and it helps to build good relationships with your customers.
If you want to create a business name that is catchy for advertising purposes to build brand awareness, fictitious business names or DBAs will do the trick. You can come up with various names for each portion of your business that will be memorable to your clientele. Some examples of catchy fictitious business names are Classy Cats Behavior Consulting and Training Man’s Best Friend. To guarantee that your DBA name sticks in the minds of your customer base, you can even create a catchy slogan that incorporates it.
Fictitious Business Names Enable You to Register Your Business with Ease
If you are operating as a sole proprietor, you do not want to go through the trouble and expense of establishing an LLC or a corporation to register your business. Using a fictitious business name or a DBA is the quickest and least expensive way to register your business. With a fictitious business name or DBA, you can create a professional identity without needing to establish a corporation or an LLC.
Before creating your fictitious business name, check to see if you live in an area that requires filing. If no filing is required, then you can proceed with creating your fictitious business name and building a new branch of business. If filing is required, you need to decide whether you want to go through the filing process yourself or receive help with filing. If you want to file your fictitious business name on your own, you need to research the filing requirements for your area, obtain the forms and pay the fee. Some states will enable you to file your fictitious business name online while others will require you to fax or mail in your forms. If you do not want to spend time researching and filing, you can hire a company to handle all the details for you.