Business Structure Advice Santa Fe NM

Naming a business is an important step. Common advice says the name you select should typically portray what your business does, be easy to remember and help customers find you. Even with all the thought that goes into selecting the right name, it is often the case that a business outgrows its original name or changes focus. If you reach that point in your business, you may wonder whether filing a DBA (doing business as, which is also sometimes called an assumed name or fictitious name) or forming your business as a corporation or limited liability company (LLC) is the right step.

DBA Filings

A DBA filing allows a company to transact business using a different name. DBA filings often take place at the county level, but some states have state-level DBA filings.
For sole proprietorships and general partnerships, unless a DBA is filed, the company name is the same as the name(s) of owner(s). For example, John Smith is operating a landscaping business as a sole proprietorship.He files a DBA to transact business under the name Smith’s Landscaping instead of as John Smith.

Corporations and LLCs can also file DBAs to transact business under a name different from the name registered with the state when the business was incorporated. For example, a corporation formed as Smith and Sons, Inc. may wish to transact business under a name that more clearly states what the company does, such as The Corner Market, and could file a DBA to use the more descriptive name.

Author: BizFilings

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