Starting a business journey in North Carolina is like tapping a pot of gold. The best-in-class business-friendly climate, the most tax-friendly policies in the nation, and the booming economy serve as fertile ground for the entrepreneurial dream to come alive. If you are a small business owner with a desire to operate under a name that rings more with your brand than your legal business name, then filing for a North Carolina DBA is where to go. A DBA, or “Doing Business As,” frees you to create a unique identity for your business, which helps you to relate better with your customers and run your business professionally. Here’s a step-by-step guide on how to file the North Carolina DBA form.
What Is a DBA and Why Do You Need One?
A DBA is “doing business as,” but it is also known as an assumed business name or fictitious name. This is a registered name under which a business is allowed to operate though it differs from the legal name of the business. So whether you are a sole proprietor, a partnership, or you have already done part of the procedures on how to start an LLC in North Carolina, you may benefit from filing a DBA. This will allow you to do business under a different name, which is particularly helpful if you are branching off into different services or products. For example, you may operate an LLC under the name “Green Leaf Landscaping LLC” but would like to open up a garden store, in which case you might file a DBA under “Green Leaf Garden Supplies.”.
Step 1: Decide if You Need to Register a DBA
Before you proceed with filing a North Carolina DBA form, the first step is to determine whether you actually need a DBA. Common scenarios include:
- Sole Proprietors: If you are a sole proprietor and want to conduct business under a name different from your personal name, you will need to file a DBA. For example, if Mary Doe operates a graphic design business, she might file a DBA to operate under the name “Mary’s Design Studio.”
- LLCs and Corporations: Even if you’ve gone through the process of how to start an LLC in North Carolina, you might want to register another name for different business activities. For instance, “Sunshine LLC” may want to file a DBA for “Sunshine Cleaning Services” to distinguish its cleaning branch from other operations.
Step 2: Choose Your DBA Name
At this point, one has to choose an appropriate name. The chosen name should not be a duplicate. In addition, the name should be unique and meet the standards of North Carolina. Some of the requirements for selecting a name include:
- The DBA name shall not be “substantially similar” to any existing business name in North Carolina.
- It should not contain firm indicators such as “LLC” or “Corp” unless your business is officially structured as such.
In North Carolina, you can check if the name you want is available in the Assumed Name Database. This is to avoid being rejected because of conflicting names.
Step 3: Go through North Carolina’s Assumed Name Laws
Knowing the laws of assumed names in North Carolina will assure you that your filing is within the code. As of 2017, North Carolina now allows a business owner to file for up to multiple counties to conduct business under one filing. Also, if any name changes have occurred under your assumed name, you are required to update within 60 days.
Step 4: File Your DBA Form
Once you’ve settled on a name and reviewed the legal requirements, it’s time to file the North Carolina DBA form. The filing process involves completing the Assumed Business Name Certificate and submitting it to the Register of Deeds in the county where your principal place of business is located. The form typically requires the following information:
- The assumed business name
- The legal name of the person or entity using the DBA
- The nature of the business
- The business’s street and mailing address
- The counties where the DBA will be used
- The signature of the owner or legal representative
In North Carolina, the filing fee for a DBA is $26. You’ll also need to have the form notarized before submission, adding a small additional cost. Most counties allow you to file multiple DBA names at once if needed.
Advantages of Filing a DBA in North Carolina
Filing a North Carolina DBA form has several benefits for small business owners:
- Banking: Most banks require a certified copy of your DBA before you can open a business bank account under the assumed name. This is important in keeping track of personal finances and businesses.
- Branding: Using a DBA can market your business under a new name, thereby highlighting and communicating your brand as well as reinforcing your professional image.
- Legal Compliance: A DBA will protect you from the legal implications of doing your business activities under an assumed name.
A DBA North Carolina form is an easy process that greatly benefits your business since you’ll be able to carry out your activities under a different name. One can expand services, open a new venture, or just require one more professional brand identity that can be easily achieved at a relatively low cost by opening a DBA.
If the process is just too much to handle, or you simply like to focus on running your business, services like MyCorporation offer an all-inclusive DBA filing service. For an affordable fee, their experts will work out all the paperwork for you and make sure everything is filed in the right places so that your DBA is filed accurately and effectively. This way, you can focus on growing your business while they take care of the paperwork.