Does A Dba Always Need To Be Registered

Sometimes when people get-go a business, they don't get through the process of forming an LLC or otherwise setting upwardly an official legal entity for their business. Instead, they simply choose to do business under a business name that is dissimilar from their individual name — this is known equally a DBA (Doing Business As) name.

Y'all might be wondering if information technology is necessary to hire a Registered Agent for a DBA. The simple answer is no, but the total answer is more complicated — and information technology gets to the heart of how you lot really want to be doing business to protect your personal assets and ensure fiscal security for your business and your personal life.

What Is a Registered Agent?

A Registered Amanuensis is a responsible third party that serves every bit an authorized point of contact to receive certain official notifications and documents on behalf of a corporation or LLC. As a business possessor, your Registered Agent might non need to contact you lot very ofttimes, but they are there in case of farthermost situations. For instance, if someone decides to file a lawsuit against your business, they would serve the process notice (also known every bit "serving papers") to your Registered Agent.

A Registered Agent is also authorized to receive routine correspondence and official notices from government regulators such as the Secretary of State, including tax forms or notices related to keeping your LLC in compliance with the land laws for incorporating and maintaining a business in good standing.

Incfile offers a Registered Agent service that can serve every bit an authorized public-facing betoken of contact and mailing address for your business in any state. A Registered Agent gives you the added benefit of having a business mailing address that is separate from your home, which is available to have and forward whatever official documents to you.

Practice DBAs Accept to Have a Registered Agent?

It all depends on what kind of business you are running. If yous are a sole proprietor and yous annals for a DBA (too known as a trade proper noun, fictitious name or assumed name), you will not demand a Registered Agent. As a sole proprietor with a DBA, yous've merely registered for a business name. Your business is non a legal entity in the eyes of the state.

Registered Agents can simply serve for legal business entities — LLCs or corporations that separate the business structure from the business owner every bit a person. Registered Agents are required of LLCs and corporations and must exist designated when filing the paperwork to course your business. If yous already have an LLC and you file for a DBA, you do not need a separate Registered Agent for your DBA. You lot simply use the Registered Agent already assigned to your LLC (unless yous're filing a Foriegn LLC in another land — more about that below).

Although it can be useful to annals a DBA because it gives your sole proprietorship an "official" business proper name, just using a DBA (with no LLC or corporation gear up) is not enough protection for your personal avails or your business identity.

If you actually desire to protect your personal assets while gaining the revenue enhancement advantages and other legal legitimacy of being "officially" in business, you need to class an LLC or ready a corporation. This creates your concern as a legal entity that gives it a real existence and identity of its own, which is divide from your personal identity and assets.

Can I Use a DBA for My LLC or Corporation?

There are a couple reasons you may desire to get a DBA for your LLC or corporation. If you desire to incorporate in multiple states, and you lot want your concern proper noun to reflect the location, a DBA tin be the answer (eastward.thousand., Florida Cupcakes & Pies, Cincinnati Cupcakes & Pies, etc.). You will need to file a Foreign Qualification outset in gild to operate in a state that's dissimilar from your state of formation. If this is the case, y'all volition demand a split Registered Amanuensis for each state you want to do business in, whether you file a DBA proper noun at that place or not.

Another reason for a DBA is if the products and services yous offer through your business accept changed.

For instance, let'south say yous have a lawn mowing business organization called Bob'south Lawn Care, LLC. You lot decide to get-go offering gutter cleaning services, and instead of setting upwardly a new LLC, you only want to establish a new line of concern that is part of the same company. You tin set up a DBA to do business every bit "Bob's Gutter Cleaning" too as "Bob'due south Lawn Care." Same LLC, two unlike business organization names.

In this case, the Registered Agent y'all assigned to your original LLC would nevertheless be in service, even though you are now doing business with two separate business names.

Using a Registered Agent for My LLC

If y'all are planning to form an LLC, rather than just doing business with a DBA, you volition need to assign a Registered Agent when you lot file your Articles of Organization or Manufactures of Incorporation with the Secretarial assistant of Land. Although we've already established that a Registered Agent volition process legal documents and filing notices from the state, it is important to point out that a Registered Agent is not a mailing service for an LLC. It also does non provide any boosted liability protections.

Although you lot can act every bit your own Registered Amanuensis, there are reasons why this is not a good idea. For one, information technology'south bad enough for your small business to get "served" with lawsuits and subpoenas. Information technology'due south fifty-fifty worse when this is washed in front of customers or while meeting with clients. Another reason why having a third-party Registered Amanuensis is beneficial for an LLC is their delivery to exist present during business hours (viii a.m. to five p.g.) and receive legal documents on your behalf. This is especially important since, equally a small-scale business possessor, odds are that you may not be in the aforementioned concrete location throughout the business organisation day.

Using a Registered Amanuensis for My Series LLC

Much similar their part when information technology comes to LLCs, a Registered Agent fills the same role in a Series LLC. The master difference here is that a Serial LLC is a unique concern entity that is just available in around a dozen states and allows for the formation of "mini" subsidiary LLCs under a parent umbrella LLC. Although a Serial LLC is still a express liability company, this benefit is generally used in real manor companies as a tool to organize and protect their individual backdrop or "mini" LLCs. When it comes to the office of a Registered Agent for a Series LLC, the same agent represents the Serial LLC umbrella likewise as all the subsidiary "mini" LLCs.

Using a Registered Agent for My S Corp or C Corp

C Corps, or corporations, are the oldest form of business entity. Much like an LLC, a C Corp offers liability protection in case annihilation goes wrong with the business. Some other benefit that a C Corp tin can offering is that it can raise capital through its shareholders, which is why many big companies opt for this type of business entity. But when information technology comes to setting upwards a C Corp, a Registered Agent is still required. And if yous are considering interim as your ain Registered Agent for a C Corp, think again. This may not be an efficient way of doing business organization, especially considering the scope and size of the businesses that prefer the C Corp designation.

Unlike C Corps, S Corps are often the preferred business entity for many sole proprietors and small business owners. They are different from the C Corps desired by large businesses and accept an added benefit that they exercise not incur double tax (corporate and personal income taxes). Instead, only similar an LLC, the S Corp is considered a pass-through entity for revenue enhancement purposes. S Corps also allow you lot as the business primary to pay yourself a salary. As an owner drawing a salary, you can avoid incurring a hefty tax beak. Setting up an S Corp also requires a Registered Agent.

Filing for an LLC Instead of Using a DBA for Your Business

At present that we've established that an LLC requires a Registered Agent, let'south have a look at the benefits of forming an LLC rather than simply using a DBA name:

• An LLC provides liability protection. Operating with but a DBA does non offer liability protection since there is no stardom between the business owner and the business organisation.
• A DBA does not course a business entity. Rather, it allows you to apply a fictitious proper noun for your business that differs from your actual name. An LLC, on the other manus, adds legitimacy, helps build credibility and above all, is recognized by the state and affords certain protections under its formation.
• DBAs also do not provide any tax benefits, whereas LLC owners tin cull to exist taxed as an South Corp to potentially reduce their tax pecker.

Instead of creating a DBA name for your sole proprietorship, forming an LLC with your desired business name is the all-time way to protect your personal avails and maximize your business opportunities under the police force.

If you're set up to form an LLC or find out more about DBAs, talk to Incfile today. Our incorporation experts can aid you evaluate your options with land-specific advice.

Source: https://www.incfile.com/blog/post/need-registered-agent-for-dba

Posted by: triggsshoothe.blogspot.com

Share this post