Do you have a company that you believe would benefit from a Delaware DBA? For example, do you need to create a bank account in a title other than your company’s? If so, we would be delighted to assist you with how to affirm DBA in Delaware through this article.
What Does A Delaware DBA Mean?
A DBA means “Doing Business As”. DBA is not a legal name for your business. A Delaware DBA is a fictitious name for your LLC in the state. If a business wants to run under a different name it can file a DBA. Doing this gives the company the flexibility to operate under a different name. You need to pick a distinctive Delaware trade name for your DBA and then submit the filings with the Delaware SOS.
Do I Need A DBA in Delaware?
If you intend to conduct your business under a name that is different from your legal name then, you must get a DBA in Delaware. Although, the Delaware Division of Corporations made clear that it is not mandatory to get a DBA. If your legal name is not acceptable now, you can still operate your LLC in Delaware under a trading name. A Delaware DBA is not required at the state level, but if the corporation or foreign entity wishes to use a registered name, it must file one.
What to Consider While Filing a DBA?
When registering a DBA in Delaware, keep these things in mind. If you do not go by their rules, the secretary of state will reject your DBA request.
- Your DBA name should not be identical to other businesses.
- The reputation of your LLC should be satisfactory to the state.
- Paying by cash or check would be most preferred.
- You need to renew your DBA when the period comes.
- The DBA you create needs to be known by the public.
How Can I Setup a DBA in Delaware?
You must file a Delaware DBA certificate to run a Delaware business. Either this can be done by the county clerk or secretary of state. But before doing that you need to know the 3 steps on how to set up one legally.
Step 1: Start With Delaware Assumed Name Search
Whichever Delaware trade name you choose keep in mind that it must be distinct and should fit Delaware’s company name standards. You must check the Delaware business entity in the state’s records to ensure that the name which you chose is not in use. Don’t forget to examine the state name regulations. Your DBA should not include these:
- Avoid using the government agency’s words or any other which are under restriction.
- Neglect using words like bank, college, and trust, unless you have the authority of the state.
- Your business name should not suggest any illegal activity.
- Don’t use any entity suffix such as LLC, Corp, etc. Except if the company is truly an LLC.
- It should not deceive the general public on the type of business.
Step 2: Register Your DBA with County Clerk
Even though you have a registered LLC in Delaware you will have to file your DBA if you choose one. Delaware DBA can be filed by the County where your firm operates. There are different counties where you can file your DBA whichever is close to you such as New Castle, Kent, and Sussex County.
How To File DBA at County?
You need to register your Delaware DBA in which county you operate your business. There are two ways for you to do that which are mailing or visiting the County office. Download the registration form and start your process. Submission of the following needs to be done: Trade registration, Business, and Fictitious name certificate. A notary is also necessary for the certificates. Keep in mind that you need to cross-check with Delaware trade name records to make certain that the name you chose is not in use.
- Sussex County
Sussex County Courthouse,
1 The Circle, Suite 2,
Georgetown, DE 19947.
- New Castle County
Leonard L. Williams Justice Center,
500 North King Street, Suite 500, LL1,
Wilmington, DE 19801-3746.
- Kent County
Kent County Courthouse,
38 The Green,
Dover, DE 19901.
What is the Cost To Setup A DBA in Delaware?
In contrast to most other jurisdictions, Delaware sets a fixed price for registering a Delaware assumed name. You can only register it with the county. They impose a fee of $25 to file it per county. Unfortunately, you do not have the option to file your DBA by submitting it to the secretary of state.
Can I Update My DBA Information?
Indeed you can update and make changes to your DBA information at any time. Delaware Division of Corporations states that if the business suffers losses of any kind which is direct or indirect, the court will not be liable for it. To update your Delaware DBA you need to fill out this supplemental change form. There is a $25 filing fee that you need to pay when submitting.
Do I Have to Renew my Delaware DBA?
You don’t need to renew the Certificate of DBA to the county of Delaware. This is because the certificate doesn’t have an expiry date, so you don’t need to worry about renewing it.
Can I File Multiple DBAs in Delaware?
When there are several trade names, multiple DBAs can be obtained. However, a DBA is not sufficient to modify the name of a company; therefore an amendment is essential. As per the Delaware Division of Corporations, there is no limit to the number of DBAs that can be given to a firm. Remember the more DBAs you have the more its operating cost as each one of them comes with its own set and cost of paperwork.
What if I Stop Using My DBA/Assumed Name?
You must file a Statement of Abandonment or Withdrawal if you decide to discontinue conducting your business under your DBA name. If you no longer use the DBA your sole proprietorship will be converted to a business entity.
Frequently Asked Questions
1. Do I need to get EIN or my DBA in Delaware?
DBAs are Delaware assumed names for businesses. So you don't need to have a separate EIN for your DBA.
2. What does a DBA name states?
DBA- Doing business is also called assumed name, trade name, or fictitious name. This name is only used for business purposes like branding.
3. Am I able to get an insurance for my DBA in Delaware?
This is one of the important things for you to do as soon as you file your DBA. Get insurance to protect your business in case of liability.
4. Do I have to pay separate tax return for my DBA?
No matter how many DBAs you have you need to file one tax return as DBA is under one LLC.
What After I File My DBA in Delaware?
After filing your Delaware DBA certain other points should be on your To-Do List. Consider creating a website for your business, separate your finances open two bank accounts one for your business and a personal one. The last job for you to do is to get business insurance to protect your business assets as well as your personal assets in case of legal action.