Everything You Need to Know About a DBA
A business name is one of the most important assets for any business, and it should be chosen carefully. A business can have several names, its legal business name, and a DBA. What is a DBA?. It stands for “Doing Business As” It is, therefore, a name that a business operates under, apart from its legal business name. A DBA name enables potential customers to easily locate you through various marketing platforms. A DBA name should, therefore, be chosen wisely. You should focus on capturing customer’s attention towards your products through your DBA.
Why Do You Need a DBA for Your Business?
Here are a few reasons why a DBA may be beneficial for your business.
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1. Low Registration Costs
A DBA helps you register your business in the most inexpensive way possible. All you need to do is register the name with the authorizing body in your county or the local area, and you are good to go. It does not take much time or money. For small businesses that have limited budgets, a DBA is the most convenient business name to use. You do not have to miss a business opportunity trying to create a business name for your small business. You can get a quick DBA and start your operations immediately.
If you already own an established corporation or LLC, and you wish to open new entities under the original corporation, you can use DBAs for each new business. The new entities can then be under the original LLC or corporation. The original business will then serve as an anchor helping the new entities to grow into big corporations. It is an easy way of growing your business empire without having to go through lengthy registration procedures. It also gives you a chance to diversify and operate in different industries under one corporation.
If you are a sole proprietor or you are in a partnership, you can do business without having your names displayed in public. All you have is to register a DBA that will be used in all your business operations. A DBA makes it easy for people who value their privacy to operate with ease. Popular people like politicians and celebrities can do business and still hide their identities using a DBA. Amazing, right?
The law in most countries requires that your business name be unique from that of all other businesses. In many cases, your legal business name may already exist in a foreign country where you may want to introduce your products. This is a limitation that many businesses face. However, it is very easy to solve such a problem with the use of a DBAS. When your legal business name already exists in a foreign country, all you have to do is register a DBA and start operating using it but still under the main corporation. This way, you can flexibly expand your operations into new markets.
5. Brand Value
A DBA allows you to increase the value of your brand by using a catchy name to attract customers to your products. If your legal business name that your corporation operates under does not rhyme with your current products, all you have to do is create a DBA that implies the products you are selling. A DBA, therefore, allows you to describe your products through your business name. This is one way of marketing your product and increasing the brand value of your business name. Therefore, stress no more if your current corporation name is boring!
6. Legal Compliance
Registering a DBA means that you can conduct your operations under a legal business name without getting on the wrong side of the law. Many countries require that you operate under a registered business name no matter how small your business operations are. A DBA, therefore, allows you to operate legally without risking breaking laws. Failure to operate under a legal name can make you suffer legal fines and other related costs. With a DBA, this is the least of your worries.
7. Affordable and Easy Banking
Just as DBAs are easy to register, they are also flexible in helping your bank for your business. You can open your bank account under a DBA. If you have various DBAs under your main corporation, you can open different accounts for each to9 make accounting easy for your business.
8. Wind Up
It is now clear to you that you no longer need to worry about business names if you want to do business. From small to large businesses, a DBA will have you sorted when it comes to naming your business. You also get to maintain your privacy, save time and money in the process!