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A DBA may help entrepreneurs name their business

| May 17, 2021 | Business Law |

One of the most exciting aspects of starting a business for many Michigan entrepreneurs is choosing a business name. In some cases, if parties are acting as individuals only, they may choose to name their business after themselves. In other cases, however, they may want to create a more eye-catching or enticing name to draw in clients or customers.

In order to have an original name that is not just the name of the business owner, entrepreneurs may need to create an assumed, fictious or trade name. This name is created by filing for a “doing business as” name that will apply to the company. The DBA will act as the name that clients and customers know the business as. In many cases, DBAs are desired because the legal name of a business owned by one person automatically becomes owner’s name, and a DBA provides another option.

Not all business entities need a DBA name, and not all business owners want an alternative name. However, parties operating as any of the following entities may want to consider obtaining a DBA:

  • Sole proprietorships
  • General partnerships
  • Limited liability companies
  • Franchises
  • S corporations
  • C corporations

In some cases, depending on state and local laws, a DBA is required for sole proprietorships and other entities to name their business. If they are not required by law, having an assumed business name may still be an option for those interested in creating one. As a result, entrepreneurs may want to discuss this topic with legal professionals to gain reliable insight into what may be required or optional when it comes to DBAs and Michigan businesses.

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