The Proper Way to File a Minnesota DBA
Being a business owner in Minnesota? 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!
Minnesota DBA Application Process
Minnesota residents can get DBA without much complication. However, this process includes several additional steps that are absent in other states. The initial stage is to launch the business name scan, and it is accessible using the convenient tool on their website.
Thus, the future owners of DBA will receive a guarantee that they will be monopolists of the desired trade name.
The next step is filling out the Certificate of Assumed Name. Be careful, as you need to provide reliable information regarding your business:
- The state/district where your business or company is registered;
- What trade name do you want to get;
- Personal and contact information of all managers and members of the corporation that conducts business activities under the registered fictitious name;
- Description of the nature of the applicant’s business (as prescribed in Minnesota Business Snapshot);
- Applicant’s signature.
Next, make a payment (commission) of $ 30. Having registered online? – The commission will be $ 50. Indicate the payee is the Minnesota Secretary of State. Of course, the most convenient way is to send documents applying to the Secretary of State’s website. However, you can send them by mail: Minnesota Secretary of State Business Services Retirement Systems of Minnesota Building 60 Empire Drive, Suite 100 St Paul, MN 55103.
Also, applicants must publish the newly registered DBA in the local newspaper. In this case, it is necessary to take into account the following nuances:
- These must be two local newspapers (the state where they are published must coincide with the one of registration of the business for which the DBA was issued);
- The news section should be legal.
Be sure to get a publication affidavit. The absence of the publication itself and the affidavit confirming it invalidates the DBA.
Minnesota 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 Minnesota 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 Minnesota 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 Minnesota DBA Validity Period
The owners of registered DBAs can use them for only one calendar year. The Secretary of State accepts the renewal application online. You will find comprehensive information in this step-by-step guide. Each renewal application guarantees Minnesota applicants one additional year of use of the DBA.
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 Minnesota 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 Minnesota to publish the DBA name?
– Yes, it is. Submit your new trade name in two local Minnesota newspapers.