If you run a business under an assumed name in Delaware, you may want to set up a DBA. Short for “Doing Business As,” a DBA serves as an alternate title for your business. Often, a DBA is the name customers will use to refer to your company. In this guide, we’ll cover everything you need to know about DBAs: who needs one, who doesn’t, and two easy steps to filing with the state.
NOTE: Keep in mind that filing a trade name will not give your business protection through the corporate veil like an LLC will. If this is something you want or need, don’t fret, there are many top rated LLC formation services that can help you take care of the paperwork.
Do You Need a Delaware DBA?
Not all business entities in Delaware need a DBA. Ordinarily, a business needs a DBA when the name of their business differs from the name registered with the state.
So let’s say that Lauren operates a sole proprietorship; her legal business formation documents list her full name as the legal owner of the business. But if she wants to run her shop under the name Sew Sweet Creations, she’d need to file a DBA in order to use that name. A DBA is also useful for corporations which want to establish additional businesses or locations with a name that’s different from the Corporation name.
Limited liability companies, nonprofit corporations, and corporations operating exclusively under the name on file with the state usually do not need a DBA. They may choose to use one if they want to establish a new product line or chain of businesses under their original parent company.
A Delaware DBA does present a few advantages. While it doesn’t offer any specific legal protections or tax incentives, a DBA allows you to get a business bank account. You can also give your customers peace of mind—most people are more comfortable writing a check to a business than an individual.
Delaware does not have a state-level requirement for filing a DBA. Instead, you’ll need to register at the local level.
1) File Your DBA with Your County’s Office of the Prothonotary
In Delaware, all business entities wanting to use a DBA must file that Trade, Business, or Fictitious Name with their county’s prothonotary. The process is a bit unique; while you’re technically filing with the county, you’ll make the payment to the state of Delaware. In addition, if you will conduct business in multiple counties within Delaware, you’ll need to register in each county where you’ll operate.
Prior to registering your DBA, Delaware recommends that you conduct a search of the Trade, Business, & Fictitious Names database. This database will help you know which names are already on file with the state. Unlike some states, Delaware does not allow multiple businesses to use the same DBA. So you’ll need to ensure that your DBA is unique.
Once you’ve established that your DBA is yours and yours alone, you’ll need to fill out the Registration Certificate. This form includes some important information about your business, including your address and contact information, owners or members, and the name you wish to file.
There is a $25 fee for this registration, made payable to the State of Delaware. You can deliver the form in person or by mail.
2) Maintaining your Delaware DBA
Delaware does not require a renewal for your DBA. That said, if you ever need to make a change to your name, you are required to submit a Supplemental Certificate. This form will serve as the official way to update your name. Like in Step 1, you’ll need to ensure your updated name is unique, too.
Similarly, if you ever need to terminate your name, you can file a Termination Affidavit Form. This will remove your name from the state records (and as a result, other businesses would be able to use the name if desired).
Need Help Filing your DBA?
If this process sounds like a hassle, you can get help with setting up your business’s name with a service like Legalzoom. They make the process simple: you simply provide them with the necessary information about your company, and they’ll fill out the paperwork so you don’t have to. The process is both easy and affordable, letting you focus on running your business.
Conclusion
Your name is an important part of your business, but keeping compliant with state requirements can be tricky! We hope this guide made it quick and easy to set up your Delaware DBA.