When starting a business and getting involved with government contracting, understanding the different types of business structure is crucial. Here’s a breakdown of the key terms you need to know:
1. Legal Business Name.
Your legal business name is the official name of your business as registered with your state. It’s the name you use on legal documents, tax filings, and for business licenses. For example, if your business is registered as “Ernie Tech Innovators LLC,” this is your legal business name.
2. Doing Business As (DBA).
A DBA, or “Doing Business As,” allows you to operate your business under a different name than the legal business name. This is often used when the legal name is too lengthy or doesn’t convey the business’s nature. For instance, “Ernie Tech Innovators LLC” might use a DBA of “Ernie’s Tech & Solutions” for marketing purposes.
3. Assumed Business Name.
An assumed business name, often used interchangeably with DBA in some states, is another name under which your business can operate. In California, for example, the assumed business name is referred to as a Fictitious Business Name (FBN). So, “Ernie Innovative Marketing LLC” might operate under the assumed name “Ernie’s Marketing Solutions.”
Examples:
– Legal Business Name: “Ernie’s Global Tech Enterprises, LLC”
– DBA: “Ernie’s Tech Services”
– Assumed Business Name (FBN): “Global Innovations”
Important Considerations:
– Ensure that your business name is consistent across all official documents, registrations, and applications.
– Using a DBA or assumed name can help simplify branding and marketing efforts.
– Always check for name availability and register your DBA or assumed name with the appropriate state agency to avoid legal issues.
State Requirements.
Each state has different requirements for registering a legal business name, DBA, or assumed business name. It’s essential to research the specific regulations in your state to ensure compliance. For example, while some states require you to file your DBA with the county clerk’s office, others might require state-level registration.
For more detailed information, visit your state’s business registration website or contact your local small business development center. Make sure to do your research to comply with your state’s specific requirements.
