Learn here What is a DBA and If You Need One for Your Business

Are you a Latino small business owner who wants to start a business on the right foot?

That’s easier said than done. There are so many legal and financial considerations to take care of that you end up overwhelmed and afraid to make a decision. You simply don’t know what’s the right thing to do.

One step at the time. First things first – officially registering your business.

There are different legal forms to register your business: DBA, corporation or LLC.

If you are a sole proprietor, meaning self-employed, and looking for a simple way to register your business, then choosing a DBA is the right option for you.

What is a DBA?

DBA is an acronym for “Doing Business As” and it indicates the person that runs a business. In other words, it distinguishes the legal name of the business and the name under it runs every day. For instance, when you want to create a brand and use a name other than your own, you’ll use María Fernandez doing business as Creative Ink.

The most significant advantage of a DBA is that it is straightforward to register and easy to maintain. Plus, it is inexpensive to form. Also, you’ll avoid headaches when filing taxes because any revenue earned by the business is actually made by the owner, that is you, so you don’t need to file separate taxes.

On the other hand, since there’s not a clear distinction between the owner and the business, if something goes wrong (for example, if someone sues you), then all your personal assets can be jeopardized.

What will a DBA bring to your business

After officially registering your business, you’ll be perceived as a serious, trustworthy sole proprietor. It will give you credibility so your clients will be at ease knowing that they won’t work with a shady individual who may trick them. Nowadays, everybody wants to avoid scams and work only with reliable companies. As a result of this reliability, you’ll have more clients and successful collaborations.

Likewise, a DBA will help you separate and manage better your business finances. You’ve probably been in the hectic Land of Confusing Finances and juggled your personal funds and business funds at the same time. So complicated and time-consuming. As a registered business, you can open a bank account in the business name which is reserved only for your business revenue and payments. You won’t be able to do so without a DBA.

Last but not least, a DBA will provide you with legal support for your business. For instance, if you need to hire a bookkeeper or any other staff, you need to write up an employment contract. Without having a registered business, this contract won’t have legal power, and it will be invalid. You definitely don’t want to end up in legal trouble and spend your money on trying to save yourself.

How to register a DBA

Every state has its own rules and procedures regarding registering a DBA. We recommend you to check your state’s Secretary of State website and find out what documentation you need to file for a DBA.

DBA in real life

Fernanda is a Latino small business owner who makes lovely women’s bags. Her entrepreneurial story begun unexpectedly. First, she made bags for herself. Her friends liked them so much that asked for bags for themselves. Then, Fernanda started her Facebook page, and her business continued to grow.

However, she realized that she had created a brand and she needed to protect and legalize it. That why she registered a DBA, which allowed her also to make contracts with some shops that would sell her bags. This way, she increased her profit.

All this wouldn’t have been possible without registering a DBA.

Final words

Learn here what is DBA and analyze if you need one for your business. We wish you the best with your future business endeavors!

Steve Max
Steve Maxhttp://www.webzando.com/
A long time digital entrepreneur, Steve has been in digital marketing since 2010 and over the past decade he has built & executed innovative online strategies for leading companies in car insurance, retail shopping, professional sports and the movie & television industry.


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