After establishing an 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 straightforward, 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). There’s no need to worry about the terms because they apply equally to sole proprietorships, partnerships, corporations, and LLCs in Arkansas. What’s important is that once your certificate of assumed or 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.
- Allows you to register as a business even if you don’t file for an LLC.
- A DBA does not require an Employer Identification Number (EIN) to operate if it has no employees.
- 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 no 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 DBAs without a recognized corporate structure.
Consequences of operating with a DBA without registration
It’s illegal to operate a business under a fictitious name in Arkansas without registering it with the Secretary of State. The state can shut down your livelihood and impose stiff financial penalties. In some cases, individuals who fail to secure a legitimate DBA may face arrest and prosecution.
Along with the severe state consequences, a disgruntled customer could refuse to pay for services. By not having a legally recognized DBA, you may not be able to recover the cost. That’s largely because it’s difficult — if not impossible — to file a civil lawsuit when doing work under an unrecognized name.
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 the name is yours. There are no additional taxes to pay.
Filing for a DBA in Arkansas
One of the reasons owners and operators reach out for a certificate of assumed or fictitious name services stems from the complexity of 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 publishes Name Availability Guidelines that 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.
- The word Arkansas or its abbreviation cannot appear in a fictitious name.
- 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. The state also imposes a 100-mile rule for organizations with names that are essentially the same. Adding a city name after something along the lines of Bob’s Auto may garner approval, as long as the geographic customer bases differ.
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. The simplest way to approach the name check is to type in your possible DBA in the Enter Either Name box. Then, go to RA State and set the search engine to Arkansas. If no names populate, repeat the process using the OR Fictitious Name field. If your name comes up in either search, try another until you arrive on 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 of Fictitious Name that Fits Business Entity
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 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 Services Division
1401 W. Capitol Ave.
Suite 250
Little Rock, AR 72201
The cost of filing for a DBA in Arkansas hovers around $25, depending on the county and type of business entity. 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. If you plan to run a business as a sole proprietor, it typically makes sense to get a fictitious name to distinguish the organization from yourself. It’s also important to make sure you file a business entity or DBA with the state before performing services or selling goods.
The short answer is: No. Doing business as filings 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.