Which Mistakes Can Impact Filing a DBA in North Carolina?
Starting a business is an exciting journey, and many entrepreneurs in North Carolina choose to file a Doing Business As (DBA) to enhance their business’s professionalism and expand their operations. However, the process, while simple, has its pitfalls. This post is about the common mistakes to avoid when filing a DBA in North Carolina, ensuring your business steps off on the right foot.
Understanding the Importance of a DBA
A DBA, also known as an assumed name or fictitious business name, allows businesses to operate under a name other than their legally registered name. This is particularly useful for sole proprietors who wish to do business under a more marketable name without forming a corporation or LLC. Some of the mistakes that can impact filing a DBA include:
Mistake 1: Choosing a Name That’s Already Taken
One of the first and most significant steps in how to file a DBA in North Carolina is choosing your business name. A common mistake is selecting a name that’s already in use. North Carolina law prohibits registering a DBA that’s identical or deceptively similar to existing names. This is to avoid confusion among the public and protect the identity of already established businesses.
To avoid this pitfall, conduct a thorough name search through the North Carolina Secretary of State’s website or use a service like MyCorporation, which can perform the search for you. This ensures the name you want isn’t already taken and prevents potential legal issues down the line.
Mistake 2: Not Adhering to Name Restrictions
Another critical error is choosing a name that implies your business is a different entity type. For example, including terms like “Inc.” or “Corp.” in your DBA when your business isn’t incorporated can mislead the public and regulatory bodies, leading to legal complications. Ensure your chosen DBA complies with state naming requirements and accurately reflects your business structure.
Mistake 3: Filing in the Wrong County
When you know how to file a DBA in North Carolina, while filing the same, you must do so in the county where your business operates. A common mistake is filing in a county where you do not conduct business, which can lead to your DBA being invalid where you actually operate. Make sure to file your DBA in the correct county to ensure that your business name is recognized and protected where you do business.
Mistake 4: Incomplete or Incorrect Forms
Filing a DBA requires submitting specific forms, including the Assumed Business Name Certificate. Errors in these forms, such as incorrect business addresses, owner information, or leaving sections incomplete can delay the approval process. Double-check all information for accuracy and completeness before submission. Consider using professional services like MyCorporation to handle the paperwork, ensuring everything is filed correctly.
Mistake 5: Ignoring Local Regulations
Local regulations can vary, and not complying with specific county requirements in North Carolina can be problematic. Some counties might have additional stipulations or require different documentation. It’s important to review the local rules of the county where you’re filing your DBA. Neglecting these can lead to your DBA filing being rejected.
Mistake 6: Not Properly Managing DBA Amendments or Discontinuations
In North Carolina, once a DBA is filed, it does not expire, and there is no need for periodic renewal. However, a common mistake businesses make is not properly managing amendments or discontinuations of their DBA. If your business undergoes significant changes, such as a change in ownership or ceasing operations under the DBA, you must file the appropriate paperwork. This could include filing an amendment to the original DBA registration if key business details change, or a discontinuation if you are no longer using the DBA. Neglecting these filings can lead to legal complications and confusion about the status of your business. Proper management of your DBA ensures that public records remain accurate and reflect your current business operations.
Mistake 7: Not Utilizing Your DBA Effectively
Once your DBA is filed, using it correctly is crucial. Many businesses file a DBA and then fail to use it in all their business operations, such as banking, marketing, and contracts. Consistent use of your DBA helps to establish your brand and can protect your legal rights under that name.
Mistake 8: Assuming a DBA Provides Legal Protection
A common misconception is that a DBA offers legal protection like a trademark. This is not the case; a DBA does not prevent others from using your business name. If protecting your business name is critical, consider filing for a trademark. A DBA allows you to operate under a chosen name but doesn’t offer exclusivity.
Filing a DBA in North Carolina is a strategic move for many businesses. It can bolster your marketing efforts and simplify transactions. However, overlooking key aspects of the filing process can lead to delays, legal trouble, and potential fines. By understanding and avoiding these common mistakes, you can ensure that your DBA filing supports your business goals and enhances your professional presence in the marketplace. Whether you decide to handle the paperwork yourself or enlist the help of a filing service like MyCorporation, being thorough and vigilant throughout the process is key to your success.
