What Is a DBA for a US LLC?
DBA stands for a business name registration which will allow an LLC to do business using a different name other than the actual legal name of the LLC. This can be referred to as a fictitious name, assumed name, or trade name, depending on the state.
For instance, assume that your LLC has been formed in a name such as Global Commerce LLC, but you intend to do business under a brand name of Global Market. You can register for DBA which will allow the LLC to do business under the name of Global Market.
It is important to note that DBA does not form a new legal entity.
Can a Non-US Founder Register a DBA for a US LLC?
In many cases, it is possible to register a DBA for a US LLC even if you are not a US citizen. The LLC registration and the laws of that particular state will play a bigger role in the process.
In most cases, your foreign status does not affect your ability to apply for a DBA name.
Before applying, check:
- The state where the LLC was formed
- The state or locality where the business operates
- Whether the DBA must be filed at the state, county, or city level
- Whether the proposed name is available
- Whether publication of the DBA is required
- Whether additional registrations or licenses are necessary
Since DBA regulations vary from one place to another, entrepreneurs who are not based in the US need to confirm their own regulations.
DBA Registration for US LLC: Why Do You Need One?
The use of DBA is helpful if an LLC needs to trade under a business name that is different from its legal entity name.
Reasons for DBA Registration for US LLC may include:
- Branding: Give your brand an appealing name.
- Marketing: Develop a different brand identity for a product or service.
- Business Expansion: Operate different product lines under different names.
- E-commerce: Use a brand name that differs from the LLC’s legal name.
- Market Positioning: Present a specialized business name to customers.
A DBA can make branding more flexible while allowing the same LLC to remain the underlying legal entity.
US LLC DBA Requirements
The exact US LLC DBA Requirements depend on the state and sometimes the county or city. There is no single nationwide DBA registration process.
Generally, you may need to provide:
- LLC legal name – The official name of the US LLC.
- Proposed DBA name – The name under which the LLC intends to operate.
- Business address – The address required by the relevant filing authority.
- LLC information – Such as formation details or identification information.
- Owner or authorized representative information – Requirements vary by jurisdiction.
- Filing fee – The amount depends on the jurisdiction.
- Supporting documents – Additional documents may be requested depending on local rules.
Others might even need a name check, publication in the newspaper, renewal, and other compliance processes.
How to File a DBA for an LLC
If you are asking about How to File a DBA for an LLC, there are certain steps which are normally followed. However, you should make sure to verify the process through your state/local authority.
1. Choose Your DBA Name
Select your preferred name for the LLC first.
The name selected must conform to the guidelines provided with respect to naming. The name should not cause confusion with other companies that are already registered. Besides, you need to avoid the selection of a name that suggests that your company is offering services beyond its legal scope.
2. Check DBA Name Availability
Search for the proper business name register to find out whether the name you’ve selected is currently in use or registered.
Just because the name is available to be used for DBA doesn’t necessarily mean it will be considered trademarked. If the name is essential for your company, you can do another trademark search.
3. Identify the Correct Filing Authority
Determine where the DBA must be registered.
Depending on the jurisdiction, this could be:
- A state agency
- County government
- City or municipal authority
- Another designated filing office
This is one of the most important steps because DBA procedures are not uniform across the United States.
4. Complete the DBA Application
Provide the correct information needed. This information might cover details related to the LLC, the owners, the DBA, and the address of the business.
Founders who are not US citizens need to ensure that the information corresponds to the LLC records.
5. Pay the Filing Fee
Take into account the filing fee associated with the registration of your DBA.
The amounts involved differ drastically across states and cities. Other additional fees might also be charged in specific places for things like amendments, renewals, certification, etc.
6. Complete Any Publication Requirement
There may be some jurisdictions that will require the publication of the DBA in an authorized newspaper or other public announcement. This is not always the case, so refer to your filing jurisdiction’s rules.
7. Keep the DBA Registration Current
Some places require the DBA registration to be renewed from time to time.
Be aware of when your DBA needs to be renewed, and remember to renew it if there have been any changes to your business.
Documents Needed for a DBA for Non-US Founder
Requirements that are needed for a DBA for Non-US Founder may differ according to the location.
Some of the frequently required details or documents include:
- LLC formation information
- Certificate or Articles of Organization
- LLC legal name
- Proposed DBA name
- Business address
- Information about the authorized person filing the application
- Identification documents, where required
- Completed DBA application
- Filing fee
The foreign founder cannot expect to provide the exact documents in each US state. Verify the document requirements of the filing entity.
How Much Does DBA Registration Cost?
The cost of registering a DBA depends on the jurisdiction and the type of filing.
Potential expenses can include:
- DBA application or filing fee
- Name-search fee
- Publication costs, where applicable
- Certified-copy fees
- Renewal fees
- Professional assistance fees, if you use a service provider
Thus, there is no universal DBA registration price across the country.
For non-US entrepreneurs, it is necessary to take into account not only the price for filing the DBA but also the cost of maintaining DBA registration.
DBA vs. LLC: What Is the Difference?
A DBA and an LLC serve very different purposes.
An LLC is a legal business entity, while a DBA is generally a registered business name used by an existing business.
For example:
Legal Entity: Global Commerce LLC
DBA: Global Market
The DBA usually will not form an additional LLC, nor will it afford any additional liability shield for that matter. The current LLC is the legal entity that carries out the business.
If you want to form some sort of liability shield or a new entity altogether, then a DBA might not be the ideal choice.
Important Considerations for Non-US Founders
Non-US founders should consider several issues before filing a DBA.
State-Specific Rules
The DBA registration requirements differ from one state to another. You should not use the process in another state to prepare your application.
Banking
If you want to either open or change your business bank account using the DBA, make sure that you contact your financial institution regarding its documentation requirements. The bank may require proof of the registration of the DBA along with your LLC documentation.
Taxes
Filing an assumed name usually does not result in the formation of a new tax entity. Your current tax and accounting requirements may still remain valid for your business.
Nevertheless, your unique tax requirements will depend on factors such as the nature of the business, your income, etc.
Trademarks
The DBA registration is different from trademark protection. Registration of your company name doesn’t mean automatic trademark protection in the entire country.
It’s worth considering if you plan on turning your DBA into a trademarked brand.
Common Mistakes to Avoid
When you Register a DBA for US LLC, avoid these common mistakes:
- Assuming DBA rules are identical in every state
- Filing with the wrong government authority
- Choosing a name without checking availability
- Confusing DBA registration with trademark registration
- Assuming a DBA creates a separate legal entity
- Ignoring renewal requirements
- Using inconsistent LLC information on the application
- Forgetting applicable publication requirements
Carefully reviewing the requirements before filing can help prevent delays and unnecessary costs.
Conclusion
Getting a DBA can be a convenient way for a non-resident to conduct his business under a different name through a US LLC. Getting a DBA registration typically entails coming up with a name, confirming its availability, knowing the right agency to file, providing the necessary details, paying the relevant fees, among others.
Due to the nature of the DBA Registration for US LLC, which is regulated according to the state or locality, the specific procedures for registering a DBA may vary widely. It is therefore important to establish the current procedure of registration before filing.
For professional assistance in establishing and managing your US LLC, contacting an experienced US business setup service would come in handy.
FAQs
Can a non-US resident register a DBA for a US LLC?
Yes. A foreign founder may be able to get a DBA for his or her US LLC if he or she is allowed under that particular state’s or locality’s laws to do so.
Does a DBA create a separate LLC?
False. A DBA typically does not form a new entity. The entity formed will still be the LLC that is doing business.
Do all US states have the same DBA requirements?
No. The requirements for DBA vary from state to state, county to county, and even city to city.
Is a DBA the same as a trademark?
Not necessarily. The purpose of the DBA registration is that of a business name registration, while a trademark offers intellectual property protection of names, logos, and other brand elements that may qualify.
