St. Louis Small Business Law: Does Your Business Need A DBA?
Do you have questions regarding small business law in St. Louis? Perhaps you are wondering whether you need a DBA for your business. DBA stands for “doing business as.” A DBA is also called a fictitious business name. Whether your business is a sole proprietorship, general partnership, corporation or LLC (limited liability company), the purpose of a DBA is to inform the public of the name of the owner of the business.
The DBA was originally intended to protect consumers from dishonest business owners who are operating under another name. But honest business owners often use an invented name in order to establish name recognition, create a business identity, or identify the products or services sold.
You will use your business name when collecting payments, advertising, or conducting legal transactions. Your bank might require you to have a DBA in order to open a business bank account. Or a client might require you to have a DBA in order to enter into a contract with you. A corporation or LLC might need a different name when diversifying its business. It is a simple, effective way for companies to establish more than one business without the expense of creating separate legal entities for each one.
Setting up a DBA is a quick, easy, and inexpensive solution, which will allow you to conduct business under another name while maintaining transparency and complying with the law. The requirements for filing a DBA vary from state to state and from county to county.
You should consider filing for a DBA before conducting business under a fictitious name. For further information about a DBA, please contact us.