How to Start a DBA ( Doing Business As)
Learn how to start a DBA and file theirs taxes. We will also review the taxation for a DBA and what to do in case of an IRS audit audit problems.
Both the state and the local government usually allows corporations to register alternative names under which they can conduct their business. Also, it is valid for an individual. As a result accountants call thisDOING BUSINESS AS (DBA). This process allows you to legally conduct your business under a different trade name other than your name. If you have questions regarding DBA and its tax preparation in Houston contact us and get all your answers today.
We can also, call a DBA an assumed name. This entity provides many advantages to business owners: For example, the sole proprietorship, allows the company to conduct business using a name other than the personal name of the owner. likewise, for other types of corporations (S and C) and nonprofits. To clearify a DBA can operate their business using a different name from the one that appears on incorporation documents.
Here are some practical examples of how to use the DBA:
In this case, an individual who owns and runs a sole proprietorship computer company under the name Chris Chance might decide to file for a DBA name “Chance computers” under which he will start operating his business.
Corporations and limited liability companies (LLC) can register alternate names for certain lines of business. For example, chance computer Service Inc. could register the DBA name “Chance’s computer.”
Always remember if you need help with income tax filing or an IRS audit help, contact us at 713-384-9432.
Start a DBA and receive the following benefits:
- Firstly, a better visibility for marketing purposes.
- Secondly, some credibility with suppliers and customers.
- Thirdly, you can open a business account in the bank under assumed name.
- Lastly, the ability to do business under a different name on the Internet.
So, How to Start a DBA in Texas?
- Get a copy of form 503 (the assumed name certificate): After checking to make sure that the name you want to use is not already taken (you can do this at the Texas comptroller of public accounts office), get the copy of form 503 (assume name certificate). This form can be downloaded from the Texas secretary of state website or you can personally obtain a copy of this form at the county clerk’s office.
- Complete the form 503: Pay great attention to general instructions while filling the form. Take your time to study the form and provide the correct information. Briefly, you need these type of information:
- The assume name you wish to use.
- The legal name of the business.
- The structure of the business type and file number.
- Jurisdiction of the formation.
- Register an office address.
- Period of duration which is usually 10 years.
- County where assume name will be providing service
- Finally, submitting the form: After carefully filling the form 503, notarized the form and make sure you keep your own copy for your own records. The filing fee is $25.
Finally, contact our Houston tax office to start your DBA process.
How much does a DBA cost to start?
$79
Processing Fee + State Fee
713-384-9432