Online Incorporation MaxBlog

It kind of sounds underhanded and sneaky—coming up with a fake name to be the public face of your company. Perhaps, it’s because the thought of a fictitious name produces images of high-stakes cons, or depositing laundered and swindled cash into off-shore bank accounts.

But the reality is that filing for a fictitious name, or a doing business as (DBA) name, is perfectly honest and extremely common amongst small business owners.

There are literally hundreds of reasons why business owners decide to get a DBA name. Here are five of the most common ones:

1. Privacy. If you are the sole proprietor and owner of a business, then your legal and business names are the same. For instance, if a graphic designer named Jane Doe starts her own freelance business, the name of her company will be Jane Doe, unless she specifies a different title by filing for a DBA. For some business owners, they prefer not to have their legal name be public information, so changing the business name to a fictitious one protects their privacy.

2. A bank requires DBA name to open a business account. In many cases, banks require a DBA name if an owner wants to open a business account. So, before you are even able to finance your business, you may have to establish a name for your company.

3. A client may require a DBA name to hire you for a job. Some lines of work require the owner of a business to have a DBA name in order to be considered for a job. For example, consider our graphic designer Jane. If she is a freelance artist, and is seeking out projects from different companies, then she may be required to have a DBA name for her company (herself) in order to be contracted to do the work. Different industries have varying rules when it comes to DBA names.

4. Your company is getting involved in other areas of industry. If your company is entering into a new area or focus of business that is not represented by the name of your company currently, then getting a DBA name may be a good solution. Having a descriptive business name is important for attracting potential customers. For example, let’s say you own a lawn care business called The Yard Guys, Inc., but would also like to do backyard planning during the slower winter months. In this case, you can file for another fictitious name, such as The Yard Architects, to describe the other facet of your company.

5. Your company operates another business or website. For business owners who manage one or more companies or websites on top of their primary existing business, having two DBA names may be simpler. For instance, if you own a marketing company, but also run a business incorporation website, filing for a DBA name for the incorporation business will help keep the two separate and make it easier for customers to determine what your companies do. Also, if you own two companies that aim for two different audiences, you may want specific names that reflect the target customers.

How to File a DBA

You can file for a fictitious business name in a couple of ways. The first is by filling out the appropriate paperwork and paying the fees for your state (and sometimes your county) by visiting a local or county agency.

By far the easiest way for a small business owner to file for a DBA name is to consult the incorporation specialists at Max Filings. We can save you precious time and money. All it takes is a quick email for a price quote to get started filing for a DBA name, so visit our website today.

Taking the next step by incorporating your business can be about as tedious, tricky, and tiresome as solving a difficult puzzle (not to mention just as unexciting). But if you put in the hard work and long hours, the final result can make all the effort worth the hassle.

Unfortunately, mistakes and errors can delay the progression of forming your own LLC, and increase the duration of time that you are unable to begin making profit—time that you may not have.

To make the process easier, here are ten items you will need to have in order to successfully incorporate your small business.

1. Business Name

The legal name of your business is required to fill out the necessary government documents, such as the Articles of Organization. Make sure there is not already a business with the name of your choice in your state before deciding on a name. (Check your state government’s website.) Your final legal business name must also include a corporate identifier—LLC, inc., corporation, incorporated, etc.—when you fill out the necessary documents.

2. Address

State laws vary on whether or not an address for your business is required, so review your own state’s regulation on this issue, or ask your incorporator (the agent or company helping you incorporate).

3. List of Directors

You must include a list of people who are involved in forming your business. Their names, addresses, and contact information will all be necessary for your company to be registered by the state.

4. List of Officers

Other officials involved in incorporating your small business may also need to be documented. However, laws on this list vary around the country, so check your own state’s rules.

5. Incorporator

The person or incorporation company who is responsible for helping you form your business by preparing documents and acting as an adviser must also be included in state registration. You will need their legal name, address, phone number, email, signature, and any other contact information.

6. Business Purpose Statement

The state must have an accurate description of what services or goods your business will sell. Write a purpose statement by asking yourself what your business will offer consumers. This description will need to be either general or specific, depending on your state’s requirements.

7. Registered Agent

A registered or statutory agent is responsible for receiving all letters, packages, and official correspondence related to the business. The agent must have a physical address in the state where your business is to be incorporated.

8. Authorized Shares of Stock

In order to register your business, you will need to authorize a specific amount of shares that can be potentially held by your owners or stake holders, if you should choose to award them in the future. Not all shares have to be authorized, but you are required to set a limit, even if you aren’t offering public stock trading.

9. Par Value of Shares

You must also specify the par value of the shares authorized for reward. Par value can be different than actual value.

10. Preferred Shares

Most small business don’t offer preferred shares, but if you chose to do so you must determine the number of shares available, as well as the voting rights for different levels of ownership. Consult your incorporator if you have questions about shares.

Making certain that you have completed these 10 steps will get you well on your way to completing the arduous puzzle of business incorporation. And if you are feeling weary from the hassles of starting your own business, just keep the final picture in mind.

Visit the U.S. Small Business Administrations website to learn more about incorporating your small business.

You’re partners in life, and you think you’d be great as partners in business, as well. It’s entirely possible that you’re right. Unfortunately, it’s also entirely possible that the stress of business ownership will cause its own set of problems.

Don’t take that as discouragement, of course. Successful companies all over the country are joint ventures between spouses. You just need to make sure that your relationship and business goals fit together in the right way.

Starting a Business Together in a New Marriage

Don’t. This may seem a bit harsh, but seriously, don’t. Wait it out a while, until you’re sure you’ve learned how the two of you work together in stressful situations. This is especially true if marriage is your first time living together. You need to know if you can survive the little challenges like arguments over the position of the toilet paper before you can be ready to survive all that starting a business can entail.

Establish Your Roles

Before you even file that first piece of paperwork for incorporating your business, make sure you each know – and are comfortable with – your assigned roles and duties. Put it in writing and make sure you each sign off on it.

Keep it Separate

This is easy if you have a brick and mortar, but if your business runs from your home it might create a bit more of a challenge. Regardless, to safeguard both your marriage and your business, you need to establish a clear separation between when work is going on and when it’s time for home life.

Incorporate Your Business

If you don’t incorporate, then as a married couple your business automatically becomes a partnership in the eyes of the government and the IRS. If you do incorporate, however, your married status could help you.

If you qualify under the Small Business and Work Opportunity Act of 2007, you can have your business considered a sole proprietorship in the eyes of the IRS. You’ll each have to report a portion of your business income separately, but the benefit of that is that by doing so, you each contribute to and receive credit for Medicare and Social Security.

On the other hand, not incorporating and allowing the automatic partnership means that only one of you will be able to contribute to government retirement programs. That fact alone makes incorporating a safer and better option.

When it Works, it Works

If you have the right communication and the right temperaments, starting a business could end up being the best possible choice for your marriage, your future and your financial outlook. Just be ready to jump those hurdles together.

LLC, “S” corporation, “C” corporation . . . you might think you know all there is to know about the different ways to incorporate a business.  What you might not know, however, is that there’s another business type called a PLLC and – depending on your industry – you might be required by law to form this specific type of company.

What does PLLC stand for?

PLLC stands for Professional Limited Liability Corporation. In this context, “professional” indicates required licensing. Attorneys and health care professionals most commonly fall under the PLLC umbrella, but it really applies to anyone who is required to obtain government licensing to practice in their field.

What does it take to form a PLLC?

In most ways, a PLLC functions just like an LLC, and the formation is similar as well, with a few caveats. You’ll need approval from your state’s licensing board, and depending on your state’s specific laws, you’ll need to file certain forms. There’s a lot of variance here between states, but you can expect the incorporation process to take a bit longer if you are going the PLLC route.

You may also face restrictions on who can own shares in your business. In some states, for example, only licensed attorneys can hold stock in law firms. In other states, those who aren’t attorneys may be allowed to own shares, but only with the approval of the appropriate licensing board.

What’s the point?

If the system seems restrictive, realize that there are many benefits to these types of requirements, both for businesses and consumers. PLLC requirements insure the integrity of your field by not allowing those without the proper knowledge and licensing to influence – and possibly harm – your field as a whole.

They also restrict your competition to other qualified professionals, therefore protecting your bottom line. Without these restrictions, the going rate for the services you offer could plummet as the market fills with those who charge lesser rates because they don’t truly understand the magnitude of what it takes to obtain licensing in – and excel at – your profession. Then, of course, you have professions like medicine, where the requirement to form a PLLC keeps health care in the hands of those who are knowledgeable and dedicated to healing.

The process of forming a PLLC may take a bit longer, but it affords you the same protections as an LLC and – perhaps more importantly – keeps you on the right side of your state boards and the IRS.

You have a concept, fresh ideas and a fantastic product or service to share with the world, and you’re getting ready to incorporate your business, but one obstacle remains: you need a great name.

Deciding what to name your business is an important decision. Words carry weight, and your business’s name is likely to be a customer’s first impression.  So how do you make it a great one?

Make your business name memorable

A short name always packs a punch, as does a great acronym if your chosen business name is longer. Ever heard of International Business Machines Corporation? No? Sure you have. Most people know them as IBM.

To get started creating a unique and memorable name for your business, let yourself brainstorm. With a pen and paper handy, think about the products or services you’ll be offering and the community you’ll be serving. Write down any name that comes to mind, even if it seems completely wrong. Once you have at least five possible names, walk away from your list for a while and clear your head.

Later, come back to your list. Read over each name and see if any more ideas for naming your business come to mind. Create variations of the names you’ve already written down. Expand and cut names from the list as many times as you need until you have chosen a favorite and at least one backup.

Verify that your chosen business name is viable

The name you choose for your business may be a perfect fit, but there are still a few details to work out. First, you’ll want to conduct a name check to verify that someone else hasn’t already registered your name in your state.

While you are waiting for your name check service, you can do a bit more legwork on your own. Search online to see if an acceptable website address is available and, if you plan to incorporate social networking in your marketing strategy (something that’s just about mandatory these days), you’ll want to go ahead and reserve appropriate names on the applicable networks.

Once your name passes the check, make sure to have it reserved so that you can be sure it will still be available when you are ready to formalize your business.

Finally, as you formally incorporate your business, consider having your name trademarked. This provides you protection and a means for legal recourse should someone else neglect to take the naming precautions listed here and run a business under the name you have chosen.

Image is everything

Prospective clients and customers will make their very earliest assumptions about your business based on the name you choose, so make sure it’s memorable and fits the personality of your company. When you have a great name, you are already one step closer to starting a business with a successful future.