There’s a lot to consider when starting a business, but naming is one of the most important decisions. Many business owners will ultimately opt to use a fictitious name or a DBA. Keep reading to learn why this option exists and how key naming requirements can be fulfilled, especially important if you are learning how to start an LLC in Nevada.
Nevada DBA key points
- In Nevada, a DBA, officially called a “fictitious firm name”, must be registered with the county clerk of each county where you do business, such as Clark County, Washoe County or Carson City.
- A Nevada DBA lets sole proprietors and partnerships operate under an alternate name without forming a new entity, but it offers no liability protection, forming an LLC or corporation is required to shield personal assets.
- Under NRS 602.070, you can’t bring a lawsuit over a contract made under an unregistered fictitious name until the certificate is filed.
- To file, conduct a county-level name availability search, complete the FFN registration form provided by your county clerk, and pay the filing fee. The filing fee is $25 in Clark County, Washoe County and Carson City; check your county clerk for its current fee.
- In counties that have adopted a renewal rule, including Clark and Washoe, a fictitious firm name certificate expires 5 years after filing and must be renewed. Fictitious firm names are governed by NRS Chapter 602.
What is a DBA?
Doing business as (DBA) references the common need for an alternate name, especially among sole proprietors. In Nevada, this additional label is officially known as a fictitious name. It is handled at the county level but common among businesses across the state.
Benefits of a DBA
As mentioned, a Nevada DBA can be a valuable option for any single-member LLC that intends to conduct business under a different name.
For example: a photographer named Susan Jane Fox might want to do business under the name Susan Jane Photography. If so, she would first need to file a fictitious firm name certificate with her county clerk. Upon doing so, she would be able to operate with her preferred name, enhancing her credibility as a business owner and better standing out to prospective clients.
Doing business can also be helpful for larger entities. Often, for example, it’s beneficial to launch a specific branch of a business rather than open an entirely new entity. This makes it easier to provide a wider range of products or services that appeal to specific types of clients or customers.
Disadvantages of a DBA
While DBA is generally advantageous, there are a few downsides worth noting. Chief among these? The general lack of liability protection. This may come as a surprise to some, who assume that DBAs act as a safeguard. In reality, however, DBA is nothing more than a naming designation. As such, many sole proprietors and general partnerships secure fictitious names without ever actually obtaining genuine liability protection.
If you’re intent on safeguarding against liability, you’ll need to undergo the full process of launching an LLC or corporation. An LLC can be an excellent middle ground, but be prepared to complete major paperwork, including the articles of organization and an operating agreement.
Another minor downside? Regardless of whether you opt to run an LLC, sole proprietorship, or general partnership, you’ll need to undergo the often confusing process of registering your DBA. As previously mentioned, this occurs at the county level. The lack of state-level oversight can prompt significant challenges, as the DBA process can look considerably different depending on where your business is based.
Consequences for operating with a DBA without registration
With so much paperwork required, it can be tempting to simply operate your business under a fictitious name without actually submitting any official forms or fees. This approach is risky. Under NRS 602.070, you can’t bring a lawsuit over a contract made under an unregistered fictitious name until the certificate is filed.
Tax considerations
If you’re worried about the tax implications of registering for DBA in Nevada, relax: there are none. From a tax perspective, DBA is essentially meaningless. In fact, straightforward taxation procedures represent a key benefit of obtaining a fictitious name. Under this approach, it’s possible to make the most of a targeted name without changing taxation procedures. Remember: using a DBA does not change the official structure of your Nevada business.
Filing for a DBA in Nevada
Once you’ve decided whether to use a DBA in Nevada, it’s time to make it official. Begin by getting in touch with the relevant county clerk based on where your business is located. Remember: fictitious names are not handled at the state level.
Get familiar with Nevada’s name requirements
Prior to choosing a fictitious name, it’s important to understand general business name requirements in Nevada. These will depend largely on the type of entity you run.
An LLC, for example, must include a designator such as “limited liability company” (or relevant abbreviations) in its name. Nevada also maintains a long list of prohibited words for business names. Take a close look at this restricted words list before selecting a name, fictitious or otherwise.
Complete a Nevada Assumed Name Search
There are multiple options available for determining name availability. If you run an LLC, you’ll want to conduct a Nevada LLC search via the Secretary of State’s ORION business portal. If you launch an LLC, you may also be able to take advantage of name reservations through the Secretary of State. This option is not available to local sole proprietors or general partners.
If you’re specifically searching for an assumed name, you’ll need to do so at the county level. The Clark County Clerk’s Office, for example, offers a fictitious firm name search tool online.
Register your Nevada DBA
You’ll need to verify specific DBA procedures and fees with your local county clerk. Thankfully, many provide easy access to fictitious firm name (FFN) forms online. That being said, you may need to print the provided form and submit it in person or by mail.
Keep in mind that separate forms are typically provided for sole proprietors, partnerships, and registered entities. Keep an eye on requirements for renewals, mailing address updates, and fictitious name termination. Again, requirements vary from one location to the next. Once your DBA is filed, check which Nevada business licenses and permits you need under that name. In Clark County, for example, fictitious names must be renewed within five years of the original date of filing, and the county mails a renewal reminder about 60 days before expiration.
Conclusion
No matter which type of business you run in Nevada, it’s worth your while to consider adopting a fictitious name. This solution could provide much-needed flexibility or credibility. As long as you remember what a fictitious name can and cannot accomplish, establishing a DBA could provide considerable advantages.
FAQ
A DBA, or “doing business as,” is also called a fictitious firm name in Nevada. It allows businesses to operate under a different name than their legal one without forming a new entity.
Any sole proprietor, partnership, or business entity that wants to operate under a name other than its legal name must register a DBA with the county clerk of each county where the business operates.
In counties that have adopted a renewal rule, including Clark and Washoe, a fictitious firm name certificate expires 5 years after filing and must be renewed.
Clark County lets you search fictitious firm names online, but filings are made in person or by mail. Other counties may differ, so check with your county clerk.
No, a DBA doesn’t grant exclusive naming rights statewide or provide liability protection. To protect your business name or personal assets, consider forming an LLC or trademarking your name.