Keep in mind that database administrators offer little legal protection. This is a great way to get the right to use the name, but it usually doesn`t give you exclusive protection. The combined use of database and trademark administrators offers the best in marketing and legal protection. Not all organizations need database administrators. It depends on a combination of the legal entity of the company, the requirements of the region and the preference of the business owner. A database administrator is not a legal entity, but you must report taxes whether you have requested a database administrator or not. The structure of your business determines how often your business must file tax returns. Sole proprietorships file tax returns each year. Partnerships, LLCs, and businesses file annual tax returns with the IRS, but may also have to pay quarterly taxes if they owe taxes at the end of the year. Businesses are also required to file tax returns in their state, and some states may require quarterly or annual tax returns. Database administrators give business units fictitious names.
Sometimes this serves to protect your identity as a business owner if you have a sole proprietorship or partnership that bears your legal name. For example, Timothy Johnson could act as «Johnson Interiors» for his interior design consulting firm. The legal business structure that suits you best often depends on your plans for the future of your business. A DBA is often used by sole proprietors who wish to run their business under a business name different from their individual name. In most states, registering a DBA name gives your company the option to use a fictitious company name. However, keep in mind that a DBA name is not the same as a legal business entity and does not provide you with the same limited liability or legal protection as an LLC or other business structure for your business. LLCs and companies that want to diversify their brand presence or create distinct brand identities associated with the parent company`s brand may also view DBAs as useful and much easier than a formal change in the company name. Many states require you to file a DBA if you are doing business under a name other than your company`s official name.
This part of the website is provided for informational purposes only. The content is not legal advice. Statements and opinions are an expression of the author, not LegalZoom, and have not been verified by LegalZoom for accuracy, completeness or changes in the law. If you have a sole proprietorship or partnership, you are required by law to trade under your personal name. For example, if John Doe had a car wash and it was a sole proprietorship, he would operate under the name John Doe and not under a name he would like to work under like John Doe`s Carwash. In order for a sole proprietorship or partnership to use a fictitious name of its choice, it would have to submit a DTA. Don`t ignore this and just start using a custom business name, as an illegal transaction can have significant legal implications. So if Laura Smith wants to start a technical repair business, her business will operate under her own name, unless Laura chooses to register her DBA name as «Laura`s Tech Repair Shop». After registering her DBA, Laura`s full name is not legally associated with her company name. In some states, applications are filed with the offices of sole proprietors and partnerships other than for corporations, LLCs, and other legal entities. The shapes can also be different. After successfully completing the submission and obtaining a fictitious name certificate, you can start using your DBA name.
If all this sounds tedious and you want to use a fictitious name without signing up, think again. It is illegal to operate a business under an unregistered adopted name. Some states impose severe penalties for non-registration of a DTA name, including civil and criminal law. Unlike an LLC, a DBA is not its own separate legal entity, and there is a liability for the owner who carries on business under the DTA. Doing Business as (DBA) refers to companies operating under a fictitious name, while limited liability company (LLC) refers to legal entities that are completely separate from business owners. LLCs offer business owners much more legal protection than DBAs. As a sole proprietor, you can legally do business in this state under the fictitious name of your company, but you do not have limited liability protection. This means that you are responsible for the debts and obligations of the company. A database administrator can provide a strategic marketing advantage to a company that is diversifying its product or service offerings, but additional database administrators require more maintenance from a governance perspective and cannot provide the same type of legal and financial protection as, for example, the formation of LLCs or separate corporations.
Filing a DBA is incredibly easy, especially compared to other complicated legal forms and registrations, so the good news is that you probably don`t need a lawyer. The exact process differs depending on local regulations, but you`ll likely need to fill out paperwork with your local county or state. Registration fees are usually between $10 and $200. DBAs are deposits that, when registered, mean that a sole proprietorship, partnership, or LLC operates under a fictitious name. It does not register a company as an independent legal entity. A limited liability company (LLC) does just that, and it can offer many legal guarantees, such as the removal of personal assets from the company`s liabilities. In some cases, you won`t need a database administrator if your company name is a combination of your name and a description of your product or service. In Gordon`s case, if his company were called Gordon Flanders`s Gardening Services, he would not need a DBA. But if it is only his first name (i.e.
Gordon`s Gardening Service), a DBA is required because it is not his full and legal name.