The Proper Way to File an Illinois DBA
Being a business owner in Illinois? 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!
Illinois DBA Application Process
Registering a DBA in the state of Illinois is as easy as it can be. You can do it online or by mail without much hassle. Visit the online business name directory of the Secretary of State to make sure another company has not taken the preferred DBA yet.
If the business name is still available in Illinois, you can legally register it.
Fill in the form for the Certificate of Assumed Name using this link. You will have to enter the following information:
- The legal name and address of the business;
- The preferred DBA name;
- Your valid name and postal address;
- A Certificate of Good Standing (comes with a $25 fee);
- Signature of the applicant.
Please note that you will need to pay a $150 fee using a credit card. In addition, some counties require you to do extra paperwork with the local clerk in the county where your company primarily operates.
You might have to contact the clerk’s office in your state to find out about the required forms and fees. Do not forget to notarize the paperwork if needed. Last but not least, you have to publish an official notice of your DBA in a local newspaper. It should be done within 15 days after sending the application.
Illinois 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 Illinois 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 Illinois 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 Illinois DBA Validity Period
DBA in Illinois is valid for five years. The countdown starts from the date the documents are filed by the Secretary of State. You should renew the assumed name before the expiry date to continue using it. It will be valid for another 5 years after the renewal.
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 Illinois 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!
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.
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 Illinois to publish the DBA name?
– Yes, the applicant is must publish a notice of intention to use a DBA in Illinois. It has to be done no more than 15 days after filing the document. It should run once a week three times in a row. The newspaper has to be from the same county where the business is located. Within 50 days of filing the form, the applicant is required to provide the proof of publication to the office of the Secretary of State.