The Proper Way to File an Alabama DBA
Being a business owner in Alabama? Do you want to manage it using a prospective name? You have an excellent opportunity to acquire a business and to conduct activities of a sole proprietor under the (DBA) name.
The process of obtaining a DBA for any official business is simple, but it requires considering several nuances. In addition, owners should be aware of the rules for using the new name registered. So, we have prepared a step-by-step guide to use the DBAs in the state under the question.
It is essential: the sole proprietor must understand that he will not receive limited liability protection, as is the case with an LLC. There are no restrictions on the number of DBAs in an LLC. You won’t experience any difficulties while doing it yourself. However, the greater the number of additional names, the more difficult it is to keep accounting correctly. Therefore, hiring an LLC website is the very best idea!
Alabama DBA Application Process
Suppose you want to establish a new business and need a legit name. What to do? Provided that you and your new business are in Alabama, search the desired name in the Alabama Secretary of State implementing the convenient tool on their website. If it’s available, you can register it.
Sole proprietors operating under fictional names aren’t requested to register the said name. And yet, if it’s a corporation or LLC using a different name from the one of the parent company, a DBA must be reserved through the template of the Name Reservation Request Form. The latter will require to enter such data as:
- The business description;
- The date that the DBA was used in Alaska or elsewhere for the first time;
- DBA ownership statements;
- The relationship between the DBA and the parent company;
- A copy of the federal registration form of the company.
When reserving a DBA in Alaska, you will face a special term requirement. According to it, anyone who wants to include the name “engineer” in the business name, must have a licensed engineer on staff.
Before submitting the form, attach a check for $10 payable intended for the “Alabama Secretary of State”. Mail the two documents to the Secretary of State’s office. Mail to the following address:
PO Box 5616 Montgomery, AL 36103-5616
Alabama DBA: The Essence
At the initial stage of doing business, entrepreneurs usually use only one type of economic activity. But in the future, there is a need to diversify risks and expand the company.
So, you have to choose: open a new legal entity or apply to DBA? Sole proprietors and general partnerships may use names that differ from the owner’s name.
Limited liability companies and corporations can use several DBAs at once to have the official registered identification of their activities. Why do Alabama companies acquire DBAs? The answer lies on the surface:
- Sole proprietorships and partnerships are a guarantee that your company is conducting official activities. A professional company will attract many more potential clients than a company that has just its name. The company can also obtain a bank account using the DBA. This way, you can separate personal assets and business. It will also be more comfortable for customers, as each sole proprietorship prefers to receive invoices in the company’s name.
- Corporations and LCCs use registered DBAs to use different names within the same trademark. DBA also helps to separate subsidiaries from the parent corporation. For example, this technique is prevalent in the restaurant business. One owner opens several restaurants that are unrelated. Thus, it doesn’t matter what your marketing or accounting goals are! DBAs are advisable in any case, and most importantly, they make doing business very comfortable.
So, DBA in Alabama is the best opportunity for companies to make their image brighter and more recognizable. They can use a variety of tools to express themselves without wasting time on paperwork.
An Alabama DBA Validity Period
The lifespan of a DBA in Alabama is fairly longer than those of other states. Here your DBA will be at your full disposal for as long as 10 years. When the date expires, you can still renew it for another 10 years. For this, you must file an Application to Renew a Trade Name to the Secretary of State’s office not longer than within 6 months after the expiration date.
Hiring a Professional DBA Filing Service: The Necessity
You do not need to register for a DBA yourself, as there are quite a few companies that provide this service at a professional level. They know all the subtleties. So, you will get a positive result the first time. Of course, their services are not free. They will collect all the documents on their own, and you will only need to provide them with some data. So, it’s up to you to decide what you want: save your time or money.
It is worth noting again that the requirements for obtaining a DBA in Alabama are simple, and many companies fill out the official form online on their own. But if you are still too busy or are afraid to make a mistake, you can turn to LegalZoom, for example. The fees you will have to pay are very fair, and it is worth spending that money!
Final Thoughts
It makes sense to register a DBA when you need to separate several areas of business. Such a solution will make it possible to assess efficiency better, improve the quality of control over certain types of activities.
Rational use of “Doing business as” to promote a new product on the market – allows you to analyze the consumers’ reaction and not spend money on opening a new legal entity. To file a DBA will not cause additional complications.
FAQ Section
Can I get legal protection from the DBA?
– No, you cannot. DBA registration does not provide for the security of business from the point of view of jurisdiction. Personal asset protection is available through a corporation or limited company.
Is there a need for a registered agent when creating a DBA?
– If you acquire the DBA names as a sole proprietor or are a general partnership – you do not need a registered agent. However, companies and limited liability corporations must have a registered agent. The presence of DBA in the latter case does not matter.
Can different companies use the same name?
– A DBA application does not guarantee that your business will have exclusive rights to a fictitious name. The law does not prohibit all interested LLCs or corporations from using your registered name.
Is there a requirement by the State of Alabama to publish the DBA name?
– In Alabama, you are not demanded to publish a DBA.