The Proper Way to File a Michigan DBA
Being a business owner in Michigan? 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!
Michigan DBA Application Process
Getting a DBA in Michigan is easy. Michigan law requires corporations, limited partnerships, and LLCs to file the required documents at the state level. Other business owners are required to apply at the county level. However, there is a general rule for everyone! They should conduct a business name scan at the initial stage. They can do it here.
This way, you can secure yourself a unique DBA name in Michigan. Now the availability of the desired DBA is beyond doubt, and its future owners can fill out the Certificate of Assumed Name. Here it is essential to indicate reliable information about yourself and your company:
- The legal name of your company/corporation;
- Company/corporation identification number from the licensing bureau;
- Desired DBA;
- Applicant’s signature.
After completing the form, applicants must pay a check for $ 25, and the payee is Michigan. Completed documents and a receipt confirming the payment of the commission fee can be sent online. Also, applicants can send all documents to the postal address: Michigan Department of Licensing and Regulatory Affairs Corporations, Securities & Commercial Licensing Bureau Corporations Division, P.O. Box 30054 Lansing, MI 48909.
The state provides an opportunity for those wishing to deliver documents in person: 2501 Woodlake Circle Okemos, MI 48864.
Michigan 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 Michigan 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 Michigan 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.
A Michigan DBA Validity Period
The official term for the use of DBA in Michigan is five years from the date of its registration. Three months before the end of this period, business owners will receive a notification from the state secretary. If you still need to use the DBA, please apply (Assumed Name Renewal) for its renewal.
All essential information about the procedure and deadlines for applying for an extension is available at the Department of Licensing and Regulatory Affairs website. After registering an application for extending the validity period of the DBA, you will be able to use it for another five additional years. It applies to each such application.
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 Michigan 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 Michigan to publish the DBA name?
– No, they don’t. Michigan law does not require a new registered Fictitious Trade Name publication.