Start a DBA ( Doing Business As)
State and county both usually permits companies to check in opportunity and start a business in their controlled area. That is known as doing business as (dba). This procedure allows an individual to legally conduct your services with a different name that which can be obtained from courts.
DBA is an assumed name for a company that individual can own. This type of entity provides many advantages to business owners. For the sole trader, it allows the company to conduct business using a name other than the personal name of the owner. This is also accurate for C and S corporations. With DBA they can operate their business under a different name from the one that appears on incorporation documents.
Here are some practical examples of how to use the DBA:
An individual may own a computer company. It is being run as sole proprietorship and owners name is Matthew cook. He might decide to file for a DBA name “Chance computers” under which he will start operating his business.
Corporations and limited liability companies (LLC) can register alternate names for certain lines of business. For example, Chance computer Service Inc. could register the DBA name “Chance’s computer.”
Here are some benefits when you start a DBA:
- Better visibility when advertising.
- More credibility with clients.
- Less headache when opening a bank account.
- Ability to perform work online under a different name.
Ways to Start a DBA in Texas
- Get a duplicate copy of document 503 (the assumed name certificates): after checking to make certain that the name you want to use isn’t already taken (you may do that on the texas comptroller of public accountant office), get the copy of form 503 (assumed name certificate). This form may be downloaded from the texas secretary of state website. You can also personally acquire a copy of this form by going to the county clerk’s office.
- Fill out the form 503: Make sure all the information are accurate as you intend to use for your business. Take the time to provide the correct information as it is necessary for taxes later.
Information you need to start a DBA
- The legal name of the company.
- The structure of the business type and file number.
- Jurisdiction of the business.
- Registered office address.
- Period of duration.
- Counties where the assumed name will be used.
- Submit the documents: After cautiously filling the necessary information, send it to the secretary of State. Alway make a second copy for your record.
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