After establishing an Arkansas LLC, business owners often come to the conclusion that they need a “doing business as” (DBA) name in Arkansas. Having a secondary, fictitious name that is different from the business entity you established with the Arkansas Secretary of State provides new opportunities. In order to accomplish this, you’ll need to file for a DBA in Arkansas.
While the process of acquiring an assumed business name in Arkansas can be relatively simple, it’s critical to follow the step-by-step process to the letter. Making mistakes when applying for a DBA in Arkansas can prove costly. If adding a business name could open up new opportunities for your organization, these are the things that you’ll need to know about acquiring an Arkansas DBA.
What is a DBA (“Doing Business As”)
As you look deeper into getting the type of DBA Arkansas business owners require to grow and expand, you’ll likely encounter a variety of seemingly interchangeable terms. These include trade name, “fictitious name,” “assumed business name,” “secondary name,” and “doing business as” (DBA). They all mean the same thing. Where you file depends on your business type: LLCs, corporations, and limited partnerships register a fictitious name with the Arkansas Secretary of State, while sole proprietors and general partnerships register an assumed name with the county clerk. Once your fictitious name has been approved, your operation will gain the ability to strategically employ multiple names.
Benefits of a DBA
A DBA is yet another business asset that savvy business operators can use to their advantage. Having a fictitious name, coupled with the one listed on your initial filing, allows you to separate the wings of an enterprise for new products and services. It also helps sole proprietors and others to distinguish the company from their personal holdings. These are other benefits of a DBA in Arkansas worth considering.
- Lets sole proprietors operate under a brand name without forming an LLC.
- Helps market to new demographics and customer bases.
- Can sync e-commerce with brick-and-mortar stores.
- Creates new branding opportunities.
- Sole proprietors can elevate to a more professional status.
Disadvantages of a DBA
While there are few disadvantages to adding this asset to your holdings, it’s important to understand the limits of an Arkansas DBA. Filing for, and having an assumed business name approved, does not afford you the personal liability protections of most business entities. For example, an LLC allows owners to separate personal assets from the business. In the event of a civil lawsuit, the company can be held responsible and not you personally. That concept does not apply to a DBA used by a sole proprietor without a recognized business entity behind it.
Consequences of operating with a DBA without registration
Arkansas requires businesses to register any fictitious name they use. Operating under an unregistered name can put you out of compliance with the state and cause problems when you try to open bank accounts, sign contracts, or enforce agreements.
For example, if a customer refuses to pay for services, you may have trouble recovering the money in court if the work was done under a name that was never registered.
Tax considerations
There’s a misconception that persists that onboarding a doing business as name will result in companies paying more in taxes. Nothing could be further from the truth. You simply pay a modest filing fee, and you can start using the name. A DBA doesn’t create a separate taxpayer, so there are no additional taxes to pay. It also doesn’t replace any Arkansas business licenses and permits your business needs.
Filing for a DBA in Arkansas
One of the reasons owners and operators reach out for help with a fictitious name filing stems from the pre-registration process. You will need to jump through a few hoops to ensure the DBA meets Arkansas standards.
Many of the popular names have already been taken, leaving entrepreneurs and other decision-makers to spend an inordinate amount of time finding the perfect fit. These are things you’ll need to know and do before making an official filing.
Name requirements
Like other states, Arkansas has adopted strict rules regarding what can be used as a DBA. The Arkansas Secretary of State’s name availability rules include the following prohibitions.
- A registered trademark, trade name or wording that appears similar.
- Words that might lead people to believe the entity is a government agency.
- Corporate endings, such as LLC, Inc., Corp., or Co., among others.
- Adding the word Arkansas or its abbreviation doesn’t make a name distinguishable from an existing one.
- Employing upper and lower case letters to distinguish a DBA from a registered business.
- Using words that would confuse one organization with another.
There are also certain terms that require prior approval, such as “bank,” “trust,” “engineer,” and “Razorbacks,” among others. Adding a city name to an otherwise similar name, such as Bob’s Auto of Jonesboro, may help it gain approval.
Begin with Arkansas Assumed Name Search
To make sure your desired name hasn’t been taken, you can perform an Arkansas business entity search through the Arkansas Secretary of State’s site. Search for your possible DBA as an entity name first, then repeat the search using the fictitious name field. If your name comes up in either search, try another until you arrive at a fictitious name that is not registered.
Steps to register your Arkansas DBA
With a clean Arkansas doing business as name in hand, you can proceed to the state’s Corporations Online Filing portal. Fill in all of the information to avoid a rejection.
Step 1
Click on the Application for Fictitious Name that fits your business entity type.
Step 2
Enter your entity filing number.
Step 3
Enter the DBA name you have selected.
Step 4
Explain the character of the operation.
Step 5
Enter the original business entity name.
Step 6
Check domestic or foreign entity.
Step 7
Provide the complete address.
Filing online vs. by mail
The online filing system takes only a few minutes to complete if you have all of the pertinent information prepared. The Secretary of State also processes hard-copy applications at the following location.
Mail or in person:
Arkansas Secretary of State
Business & Commercial Services
1401 W. Capitol Ave.
Suite 250
Little Rock, AR 72201
The state fee to register a fictitious name is $22.50 online or $25 by mail for LLCs and corporations ($15 for LPs and LLPs). Sole proprietors filing with the county clerk pay the county’s fee. The larger investment for busy entrepreneurs and industry leaders is the time it takes to ferret out an available name and fill out the form.
Conclusion
Registering a DBA in Arkansas creates a wide range of opportunities for bold professionals. For business owners operating under a legal entity, understanding how to start an LLC in Arkansas can help clarify how DBAs fit into a broader business and branding strategy. The secondary name can be used to extend new services to consumers, realign marketing strategies to connect with changing demographics, and increase profit margins for a modest filing fee. If you are considering acquiring one or more fictitious names, there are online firms that specialize in business filing.
FAQ
Having an Arkansas DBA is not necessarily a must. You only need one if you do business under a name other than your legal name. If you plan to run a business as a sole proprietor, it often makes sense to register an assumed name with your county clerk to distinguish the business from yourself. Make sure any name you use is registered before performing services or selling goods under it.
The short answer is: No. Fictitious name filings with the Secretary of State do not expire in Arkansas. However, you must cancel the initial filing and submit a new application if you wish to modify the name at any juncture.
The short answer is: No. The fictitious name is not separate from your business entity. You can, however, open a business account while operating under a DBA.
The short answer is: Yes. Once the filing has been approved by the state, you can freely enter into business agreements and enforce them, if necessary.