How to File A DBA In Kentucky

Key Highlights

Learn how DBA enables businesses to conduct operations under a name different from their legal identity.
Discover how to use DBA to achieve various objectives, including branding, market expansion, and rebranding following a merger or acquisition.
Learn how much it will cost and what steps are required to register a DBA name for a Kentucky company.
Learn how a DBA can help with branding and marketing, even if it doesn't result in the establishment of a new law firm.
Recognize that DBA names may be restricted in Kentucky and that picking a legal and pronounceable name is crucial.

What is DBA?

Establishing a successful business necessitates having a solid understanding of the fundamental ideas and terminology used in the sector. The term "DBA," or "Doing Business As," is widely used in the US to describe situations where a firm selects a name different from its registered legal name.

Although DBA is a term that is frequently used in the US, other countries might have a different equivalent. For example, in some locales, it could be called a "Assumed Name" or "Fictitious Business Name." In other instances, the name used is only a made-up alias with nothing to do with the company's legal name. Because these nuances can impact both the financial and legal aspects, business owners need to understand them.

Why do you need a DBA?

"Doing Business As," or "DBA," is a formal method of indicating that a business is operating under a name other than its official one. Numerous factors could influence a company's decision to take this action. One of the key reasons is to develop a better brand name that more correctly describes the company and its goods or services. This might make the company stand out from rivals and draw in additional clients.

A business may also use a DBA to enter a new market or create a distinctive brand identity. For instance, a company could adopt a different name to highlight a particular product line or market segment.

Of course, there are a lot more things that might compel a business to alter its name or choose a DBA. A merger or purchase, for instance, can necessitate changing the company's name to reflect its new ownership or emphasis. Similarly, a business can decide to alter its name to separate itself from a bad reputation or elevate its perceived stature within the sector.

Whatever the reason for using a DBA, businesses must comprehend the legal ramifications and prerequisites of doing so. Penalties, fines, and legal action may be imposed for failing to file a DBA application with the correct state or local government office.

How to set up a DBA in Kentucky

To conduct business in Kentucky under a name other than your legal or registered name, you must submit a DBA application. The actions you must take to register a DBA in Kentucky are as follows:

Decide on a title

Choose a name that correctly reflects your business and is not already used. Find out if the name is available by searching the Kentucky Secretary of State's website.

Deliver a Certificate of Assumed Name.

Send a Certificate of Assumed Name form to the county clerk where your company is situated. The county clerk's office or the Kentucky Secretary of State's website both offer the form.

Send the filing fee's payment.

In Kentucky, a DBA may be filed for around $20. However the cost may vary according to the county. You can get in touch with the county clerk's office to find out the actual price and accepted payment options.

Make an announcement public

Once you have filed your Certificate of Assumed Name, you must publish the DBA in a publication distributed in the county where your business is located. Implement this procedure once a week for two weeks. To submit an affidavit of publication to the county clerk's office after the document has been published a second time, you must get one from the newspaper.

Renew your DBA

The DBA must be renewed regularly under county regulations. Contact the county clerk's office to learn when the DBA renewal process is due and how to complete it.

Kentucky DBA name restrictions

The stringent restrictions on business names in Kentucky must be considered while choosing an acronym for your assumed identity. The following are some important restrictions to bear in mind:

Titles that might mislead the public

Your DBA appellation must not in any way be deceptive or reflect you in a negative light. For example, it is forbidden to use a name that suggests your company is a government agency or that you possess a license or certification that you do not.

Reserved terms

Certain words and phrases, such as "bank" and "insurance," are only to be used by specified enterprises. You may not include terms like "banking" or "insurance" in your DBA name if your company does not operate in such industries.

Vulgar language

It's against the law to use foul language or other offensive content in your DBA name.

Similar titles

Your DBA name shouldn't be too close to the name of an existing business in the same sector or market as that of yours, since this might cause confusion among potential clients.

Legal conformity

Your DBA name should adhere to all applicable federal, state, and municipal rules and regulations.

Forms needed to file a DBA in Kentucky

There are a few procedures you must complete in Kentucky if you want to register a DBA (Doing Business As). An Application for Registration of Assumed Name must first be completed, and it asks for basic information about your company, including your name and address, as well as the name you intend to use for your DBA.

The application must also be accompanied by a Certificate of Assumed Name, which must be notarized and attests to your authority to use the name you've chosen for your DBA. Remember that you might need to publish a notice of your DBA in a local publication depending on where your business is situated in Kentucky.

Last but not least, you must pay a filing fee to register your DBA. The cost of this item might vary from $20 to $30 depending on the county. Once you have followed all the guidelines and met all the requirements, your DBA will be validly registered in Kentucky, allowing you to conduct business using the name of your choice.

Kentucky DBA filing & registration

A DBA (Doing Business As) can be used by a person in Kentucky who wants to do business under a different name than their registered business name. The first step entails choosing an identity that still needs to be used by another business in Kentucky. It is crucial to remember that some limitations apply to the names that can be used in a Kentucky-based DBA. The name cannot deceive or mislead, for example, by implying that the business is a corporation or any other form of organization that it is not.

After selecting a DBA name, the Application for Registration of Assumed Name must be completed. The application must include basic information about the firm, such as its address and the name it intends to use. Providing accurate and current information is essential.

A Certificate of Assumed Name is to be filed immediately after the application is delivered. A notary public must examine this document, which confirms the company's authorization to use the DBA name of its choice. It is crucial to carefully fill out the certificate and have a notary public sign it before submitting it.

It could be essential to post the DBA notice in a local newspaper, depending on the county in which the company is situated. If applicable, a public affidavit must be delivered to the Secretary of State's office to confirm that this requirement has been satisfied. Again, providing accurate and current information is essential.

Kentucky DBA tax considerations

First, it's crucial to know that a DBA is only a distinct name a business uses to conduct its operations rather than a separate legal entity from the business owner. As a result, rather than filing a separate tax return for the DBA, the owner will record the company' earnings and outlays on their tax return.

Kentucky has several state and municipal taxes that apply to businesses, including sales tax, income tax, and property tax. Based on the type of business you run and where it's located, different taxes may be applicable to your DBA.

For instance, if your DBA involves the sale of products or services, you may need to gather and send Kentucky sales tax. Kentucky's current sales tax rate is 6%, while individual counties may have a different rate.

Additionally, you must report any income your DBA generates on your tax return and pay any applicable state income taxes. Depending on your earning level, Kentucky's state income tax rate ranges from 2% to 5%.

Finally, you might be responsible for paying property tax if your DBA owns or rents the property. The county and property valuation in Kentucky determines the different property tax rates.

How much does a DBA filing cost in Kentucky?

A filing fee must be paid to register a DBA (Doing Business As) in Kentucky. The charge may vary based on the county in which your company is situated, but it typically ranges from $20 to $30.

There can be other costs associated with registering a DBA besides the filing fee. For instance, you would be responsible for additional charges if your county requires you to post a notice of your DBA in a local newspaper. A Certificate of Assumed Name must be obtained; the notary public who signs the certificate may charge a fee for their services.

It's vital to remember that these additional costs will change depending on the particular criteria in your county. To get a more accurate idea of the overall fees for establishing your DBA in Kentucky, you should check with your county clerk's office or speak with a local business attorney.

Conclusion

In Kentucky, registering a DBA is a straightforward process overall. Business owners who choose a unique name that complies with the state's naming requirements and complete the necessary papers can legally operate under a name different than their official business name. It's critical to remember that additional rules, such as those requiring publication of a notice in a local newspaper, may apply depending on the county where the business is located. Business owners need to be aware of the tax ramifications of forming a DBA and ensure they appropriately report and submit their revenue. With careful planning and attention to detail, keeping the legal advantages and protections of a company while operating under a different name is simple.

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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.