DBA’s and Doing Business As (Fictitious Names) – ☕Coffee With Carl EP-27 (New Series)

– Hello everyone. Welcome to another Coffee with Carl. I’m your host, Carl Zoellner. I’m one of the attorneys with
Anderson Business Advisors. And today’s subject, we’re
going to talk about DBA’s. I get lots of questions on
what it is; how it works. Is it appropriate? So let’s talk a little bit
about some of the differences or the appropriate ways to use them. DBA is just a simple form
of “Doing Business As,” meaning you’re using, some states call it, a fictitious name. What it is is doing business in a name that is not an official name as the Secretary of State would recognize it. So as an example, let’s
say I had Imperial LLC. I like the name of the LLC,
so I’m using Imperial LLC. However, I’d like to now
either use a separate name. Say I’m maybe using or want to potentially get into landscaping or
multi-level marketing, or something like that, and I
want to use a different name. That would be a time to use a DBA. DBA’s are sort of neat
because they can allow you when to file it with
your Secretary of State. Some places even make you
file it with the county if you’re doing business in that county. But when you file it,
you can actually even, once it’s registered, you can
actually set up a separate bank account for it. But really the flexibility
allows you to use a different business name in the same business entity. So if I had a corporation,
and that corporation’s main purpose was management or real
estate or actively managing flip properties, things like that; but my wife wanted to
have her own multi-level marketing company, Essential
Oils or something like this, we could file a DBA for that corporation. Set up a separate bank account
and it could be, you know, Essential Oils, it would be
the name of the DBA name, okay. So it’s interesting in that
it’s an interesting tool. The problem or the thing
you run into is this, a DBA does not provide asset protection; it simply provides a name. Additionally, if you were to look up a DBA on the Secretary of State
website, it would connect directly to that business
entity or individual that filed the DBA and so that you
would be able to see that. So we still would need
to use business entities, but it is an interesting
tool if you want to use it for multiple streams of
businesses or if you maybe have numerous very small businesses. It’s an interesting tool that’s
out there that you can use. Like I said, the real shortcoming though, is that it does not
provide asset protection. To me, it’s also creative
or also a good way, like I said, I like that it
has a separate bank account. Because if I’m doing a separate business and I want somebody to write me a check, I can have them pay
that other bank account. Also help for bookkeeping and accounting, making sure everything
goes where it’s supposed to and all the you can see
where the money’s generated also keep track of your books. But the DBA is, like I said, it’s simply using a different
name, a fictitious name, as some states refer to it. And that’s sort of its base use. Now, interestingly enough,
when you say, I don’t know, I guess Texas is at the
front of my mind today. But if you want to foreign
file your business, if you had a business maybe
you started in California and you want to actually
move that business if you’re moving to Texas or want to be at a state you’re moving to. In Texas a DBA is actually how you file or transfer a business by
filing that fictitious name so that you can use it
in the state of Texas. So there’s lots of
little nooks and crannies when we’re talking about DBA’s and their purposes and their uses. However, the main thing
to take away from this is it’s a cool tool you
have available to you. Usually, they’re very reasonable to file. Make sure you’re using somebody
who knows what they’re doing when they file it. Otherwise, you may just be
sort of throwing money away if it’s not done
appropriately or correctly for the type of business
you’re going to be conducting, especially in the state
you’re conducting it in. Like I said, some states just
file it at the state level. Others want you to file
at the county level. But make sure you have somebody
who can do that for you. That is one of the services
we provide as well, so if you want to use Anderson Advisors, always happy to help ya,
and talk to ya about that. Once again, please take advantage of all of our free content. Come to one of our
three-day Asset Protection and Tax classes so you can get
your individual consultation as well as a Wealth Planning
Blueprint drawn out for ya. It’s going to be exciting
to see y’all there at the next one if you’re attending. Otherwise, this is Coffee with Carl. And I’m Carl Zoellner. It was good speaking with ya, and we’ll catch you next episode. Thank you.

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