If you run a business under an assumed name in North Dakota, 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.
In North Dakota, the DBA is actually called a “Trade Name.” Essentially, they’re the same concept. “Trade Name” is just the terminology used by the state. For consistency, we’ll call it a Trade Name throughout the rest of this guide.
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 cheap LLC services that can help you take care of the paperwork.
Do You Need a North Dakota Trade Name?
Not all business entities in North Dakota need a Trade Name. Ordinarily, a business needs a Trade Name 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 Trade Name in order to use that name. A Trade Name 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 Trade Name. 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 North Dakota Trade Name does present a few advantages. While it doesn’t offer any specific legal protections or tax incentives, a Trade Name 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.
All entities using a Trade Name in North Dakota can find and complete all their filings with the Secretary of State.
1) File Your Trade Name with the North Dakota Secretary of State
In North Dakota, if you are the first to register a Trade Name with the state, then you have exclusive rights to the name. Once you’ve registered your name, no one else will be able to use the name or create one that is deceptively similar. (Please note that this name protection is not the same as a trademark right. Those rights would require further registration).
Because registered names are protected, you’ll need to check that your name is available to begin with. You can do so by running a Business Search. Simply type in the exact Trade Name you’d like to use. If any exact matches pop up, then your name has already been claimed in North Dakota. You’ll need to make a few changes to make the name distinguishable.
Next, you’ll need to complete a Trade Name Registration. This form includes important information about your business, including your entity type, your principal office address, signatures of the individuals who will own the Trade Name, and of course, the Trade Name itself. You can file the form by mail, in person, or by fax.
There is a $25 filing fee for this application. You can pay by check or credit card. If using a card, you’ll also need to fill out the credit card authorization at the end of the form.
2) Maintaining your North Dakota Trade Name
Your initial name registration grants you five years of exclusive use of that Trade Name. After that, you’ll need to submit a renewal to the state. The Secretary of State will send the form to you roughly 90 days prior to when your name expires.
Other than that, you’d need to file a cancellation of your name if you ever intend to stop using your Trade Name. This cancellation would essentially release your name for use by others.
Need Help Filing your Trade Name?
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 North Dakota Trade Name.