If you run a business under an assumed name in Tennessee, 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 Tennessee, the DBA is actually called an “Assumed Name.” Essentially, they’re the same concept. “Assumed Name” is just the terminology used by the state. For consistency, we’ll call it an Assumed 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 online services that can help you take care of the paperwork.
Do You Need a Tennessee Assumed Name?
Not all business entities in Tennessee need an Assumed Name. Ordinarily, a business needs an Assumed 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 an Assumed Name in order to use that name. An Assumed 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 an Assumed 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 Tennessee Assumed Name does present a few advantages. While it doesn’t offer any specific legal protections or tax incentives, an Assumed 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.
Filing an Assumed Name with the Department of State is required in Tennessee. You’ll need to file online or by mail.
1) File Your Assumed Name with the Tennessee Department of State
In Tennessee, registering your Assumed Name essentially protects your name from being used by other entities. This protection stems from the state’s distinguishability requirements: all names, including legal business names and assumed names, must be distinguishable on the record of the Department of State.
Before you actually register your name, you’ll want to ensure that your name is distinguishable. To do so, you should run a Business Name Availability Search. Type in the name you’d like to use. If the search results display any exact matches, then you’ll need to make some changes to make the name distinct.
After that, you can file an Application for Registration of Assumed Name (the form will vary based on your entity type). This document serves to officially register your Assumed Name with the state. The form includes some information about your business, including your legal name, a signature of the applicant, and of course, the name you wish to reserve.
There is a $20 filing fee for this application. If you file online, you’ll need to pay using a credit or debit card. Mailed-in filings can be paid with a check made payable to the Department of State. Once your name is registered, other entities must make their name distinguishable from yours, so your Assumed Name is (in a sense) protected.
2) Maintaining your Tennessee Assumed Name
In Tennessee, an Assumed Name registration is valid for five years. After that, if you intend to keep using your Assumed Name, you’ll need to file a renewal. The process is very similar to the initial registration; the fee is also $20.
Similarly, if you ever need to make changes to your name or even stop using it, you can file an amendment or a cancellation of your Assumed Name. You can find all the forms you’ll need to maintain your Assumed Name here.
Need Help Filing your Assumed 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 Tennessee Assumed Name.