How To File A DBA In Delaware

Key takeaways

Learn how to file a DBA in Delaware and about submitting the form to the Delaware Division of Corporations along with the filing fee.
Learn to post a notice of your DBA in a Delaware newspaper.
Understand the necessity of a name check before establishing a DBA to confirm that the name you intend to use is available.
Get to know that a DBA does not guarantee legal protection for your company name; you should also explore trademark registration to safeguard your brand.

You must submit a DBA (Doing Business As) if you want to do business in Delaware under a name other than your legal or registered business name. A trade name, fictional name, or assumed name is another term for a DBA. Filing a DBA permits you to conduct business under a name other than your own or your registered business name. It is vital to realize that a DBA does not create a distinct legal corporation but permits you to do business under a different name.

Filing a DBA in Delaware entails completing a form and paying a fee to the Delaware Division of Corporations. You must also post a notice of your DBA in a Delaware newspaper for two weeks. Before filing, it is advised that you do a name check to confirm that the name you intend to use is accessible.

What is DBA?

DBA is an abbreviation for "Doing Business As." It is also known as a business, fictional, or assumed name. A DBA is a legal registration that permits an individual or organization to do business under a name other than their legal or registered business name.

A DBA is frequently used by sole proprietors, partnerships, or companies that wish to conduct business under a name other than their legal name. For example, if John Smith wishes to start a landscaping company named "Green Gardens," he can obtain a DBA registration to utilize the name "Green Gardens'' in his firm.

Filing a DBA does not create a new legal company but permits the firm to conduct its operations under a different name. However, a DBA may be necessary for legal or financial purposes, such as opening a bank account or acquiring a business license. It's vital to realize that a DBA does not give you legal protection for your company's name. A company should consider registering a trademark to protect its brand or identity.

Why do you need a DBA?

You might ask why you need a DBA if you're just starting. Let us tell you; there are a few solid reasons why you should acquire a DBA.

Conducting business Under a Distinct Name: A DBA allows you to conduct your business under a name distinct from your legal or registered business name. This might be handy for branding or creating a more memorable name for your company.

Legal and financial requirements: A DBA may be legally necessary to do business or create a bank account in some situations. For example, if you are a sole owner, you may require a DBA to acquire a business license.

Separating Business and Personal Identity: Using a DBA to separate your business and personal identities can assist. This is especially significant if you run a sole proprietorship since it permits you to do business under a different name.

While a DBA does not guarantee legal protection for your company name, it may help you develop your brand identity. You should consider registering a trademark to protect your company's name or brand.

How to set up a DBA in Delaware?

Choose a Name: The first step is to give your DBA a name. Check the Delaware Division of Corporations website to ensure the name is not already used.

Fill out a Certificate of Assumed Name: Once you've decided on a name, you must fill out a Certificate of Assumed Name with the Delaware Division of Corporations. The filing cost is $25 and can be paid online or by mail. You must enter your legal name, the name of your company entity, the DBA name, and a brief description of your business operations on the form.

Publish Notice: You must publish a notice in a newspaper in the county where your business is situated within 20 days of submitting the Certificate of Assumed Name. The name of your company entity, the DBA name, and your address should all be included in the notification.

Seek Licenses and Permissions: Depending on the nature of your business, you may need to seek licenses and permissions from state and local government authorities.

Renewal: You can renew your DBA registration every five years. To keep using the name, you must renew your registration before it expires.

It's crucial to realize that creating a DBA does not give you legal protection for your company name. To protect your company name, you should consider registering a trademark. Furthermore, if you are a lone owner, you should create an LLC to separate your identity from your company operations and gain liability protection.

Delaware DBA name restrictions

In Delaware, there are several limits on the name you can choose for your DBA (Doing Business As). Here are some of the major constraints:

Similarity to Other Business Names

Your DBA name cannot be the same or misleadingly similar to the name of another Delaware-registered business organization. This comprises corporations, limited liability companies (LLCs), partnerships, and sole proprietorships.

Use of Certain Terms

Your DBA name cannot contain terms that indicate your company is a different sort of entity than it is. For example, if you are not a business, you cannot use "Corporation" or "Inc." in your DBA name.

Use of Restricted or Required terms

Your DBA name cannot include restricted or required terms such as "bank," "trust," "insurance," or "university." If you wish to use one of these terms in your DBA name, you must first seek permission from the appropriate regulatory agency.

Use of Profanity or Obscenity

You may not use profanity or obscenity in your DBA name. Selecting a name that is distinct, distinctive, and embodies your business identity while still adhering to the limits indicated above is critical. You can contact the Delaware Division of Corporations website or an attorney if you are unclear if a particular name is permitted.

Forms needed to file a DBA in Delaware

To register a DBA (Doing Business As), you should first file a Certificate of Assumed Name with the Delaware Division of Corporations. You may submit the form either online or via mail. Here is what you must include:

Your full legal name as a person or the legal name of your business organization.

If you're operating as a commercial entity, such as a corporation or LLC, you must submit the entity name, state of formation, and date of establishment.

DBA Name: This is the name under which you want to do business. Check that it complies with the Delaware DBA name regulations.

Explanation of Business operations: A quick explanation of your company's operations.

Filing Fee: A Certificate of Assumed Name costs $25 to file.

After you've completed the form and paid the cost, you must post a notice in the county where your business is situated in the newspaper within 20 days of completing the form. Your legal name, DBA name, and address should be included in the notification. After publication, you must file an Affidavit of Publication with the Delaware Division of Corporations.

Delaware DBA filing & registration

Choose a name that complies with DBA name requirements, file a Certificate of Assumed Name with the Delaware Division of Corporations, and pay a $25 fee to file and register a DBA in Delaware. Your legal name, business entity name, DBA name, and a brief description of your company operations are all required on the form. Within 20 days of completing the form, publish a notice in your firm's county newspaper. Obtain all the necessary licenses and permissions. Every five years, renew your registration before it expires. If you have any questions, contact an attorney or accountant knowledgeable about Delaware's business rules and regulations.

Delaware DBA tax considerations

There are various tax concerns to keep in mind while conducting business under a DBA (Doing Business As) in Delaware:

Delaware should have a state sales tax, but businesses must still collect and pay other taxes, such as gross receipts or withholding tax.
Personal Money Tax: If you are a sole owner, every money generated by your DBA is subject to personal income tax. If you have created an LLC or another business entity, you may be required to submit a separate tax return for the company.
Employer Taxes: If you have workers who work under your DBA, you must pay employer taxes such as federal and state unemployment taxes and Social Security and Medicare taxes.
Business Deductions: As a DBA owner, you may deduct business costs on your tax return, such as office supplies, equipment, and travel expenses.

To guarantee correct tax filing, keep complete records of all company revenue and costs linked to your DBA. You should speak with a tax professional or accountant to ensure compliance with Delaware tax rules and regulations.

How much does a DBA filing cost in Delaware?

A DBA (Doing Business As) registration in Delaware costs $25. This fee is necessary when filing the Certificate of Assumed Name with the Delaware Division of Corporations. There may be additional fees for posting your DBA notice in a newspaper, getting licenses and permissions, and renewing your registration every five years. When contemplating registering a DBA in Delaware, it is critical to account for these costs.

Conclusion

To summarize, registering a DBA in Delaware is a simple procedure that entails selecting a name that complies with state limitations, submitting a Certificate of Assumed Name, and paying a $25 cost. Businesses should address tax implications after registration, such as prospective business taxes, personal income taxes, employer taxes, and company deductions. As with any business choice, getting expert advice and verifying compliance with Delaware laws and regulations is critical. Businesses can operate under a DBA in Delaware and create a distinct brand identity for their activities by following these procedures.

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Note: Our content is for general information purposes only. Levy does not provide legal, accounting, or certified expert advice. Consult a lawyer, CPA, or other professional for such services.