Just like every Idaho business, yours started with a dream. But before you can open your doors, whether they’re physical or virtual, you have a big decision to make. What are you going to write above that door? Although a great business name doesn’t guarantee success, using the wrong one can confuse customers, limit your growth, or even lead to legal issues in the future.
Choosing the perfect name may seem simple, but you might later need more flexibility than your registered name provides. Maybe you want to add different product lines, or build a website with a URL that doesn’t match your registered business name, or just wish to avoid using your personal name as a sole proprietor. Whatever the reason, a DBA (Doing Business As), or an ABN (Assumed Business Name), as it is called in Idaho, is your solution.
What is an ABN (“Assumed Business Name”)?
An Assumed Business Name (ABN) is simply a name under which a business trades, and not a new or different business. After registering your ABN with the Idaho Secretary of State, you can use it for many of the same activities as the formal name of your company, such as trading, marketing, and even opening a bank account. However, it does not form a new business entity, nor provide you or your company with liability protection.
Any form of business may register one or multiple ABNs. However, before you do, you need to fully understand the advantages and disadvantages that go along with them.
Advantages of an ABN
A few of the good things about an Assumed Business Name are:
- ABNs make it easy to expand a product line or add a website for business without having to form a new company.
- You can open a bank account under an ABN and charge customers under an ABN.
- Protects your personal name if you have a sole proprietorship by allowing you to operate legally under a business name instead.
Disadvantages of an Assumed Business Name include:
- An ABN won’t shield your personal finances from liability like an LLC does.
- Since filing an ABN in Idaho is only considered notice that a business is operating under a different name, anyone else can choose the same or a similar name for their own business.
Consequences for operating with an Assumed Business Name without registration
Failing to register the ABN you use in Idaho can lead to a variety of legal issues. The consequences are laid out in Idaho Code §30-21-810, and can include:
- The loss of all rights to sue in an Idaho court with the unregistered ABN as the plaintiff. This means Idaho courts can dismiss any case you bring to enforce a contract, collect money that is owed to you, or handle other civil legal matters if you have an unregistered ABN. You will need to formally register your ABN before you can pursue your case.
- If someone else is harmed because a business did not register an ABN, you can be responsible for paying for damages as well as their legal costs.
It is important to note that if the registration for an ABN is incomplete, false, or misleading in any way, these consequences may also apply.
Tax considerations
Registering an ABN for your business doesn’t change how you will be taxed. You will continue to be taxed according to the structure of your company that you chose when you formed it.
If you are a sole proprietor and use an EIN or Social Security Number for paying taxes, that won’t change either.
Filing for an ABN (DBA) in Idaho
Now that you know a little bit more about what an Assumed Business Name is and why you may want to register one, you will probably want to know how to register one. This brief overview will guide you through the steps to file for your own ABN in Idaho.
Naming restrictions on an Assumed Business Name in Idaho
Just like a business name, there are certain restrictions when choosing an ABN for your business. According to the Idaho ANB registration form and the Idaho Statute §30-21-301, these restrictions include:
- The Assumed Business Name you choose must be significantly different from any domestic filing entity, LLC, LLP, or foreign entity registered to do business in Idaho, or a name that is reserved or registered.
- The name you pick may not state or imply that your company is affiliated with any government organization or agency.
- You cannot use terms that state or imply your business is a category of business it is not. For example, you can’t use “PC,” “Corporation,” or “LLP” if your business is not one.
Begin with the Idaho Business Name Search
After reviewing §30-21-301 to ensure your name is legally acceptable to use, your next step should be conducting an Idaho business entity search on the Idaho SOS website. Just type in the name of the business you want to use, and the tool will show if any businesses in the state use that name. Remember that Assumed Business Names are not restricted in Idaho, but you’ll probably not want to use a name that another ABN is already using to avoid any confusion.
To prevent any legal issues in the future, it is a good idea to also check if the business name you are considering is trademarked. You can search for trademarked names using the Trademark Search on the USTPO website and on the Idaho Trademark Search tool.
Steps to register your Idaho Assumed Business Name
Step 1
Choose whether you want to file the form online or through the mail. If you choose to do it online, go to the SOSbiz website. You will need to log in or create a new account before you can access the form. Otherwise, you can find the form for registering your ABN through the mail.
Step 2
Fill out the form with all the relevant information. If you plan to submit the form by mail, be aware that handwritten forms are not accepted.
Step 3
Submit the completed form online or mail in the typed form along with your payment. Mailed submissions must include a check made out to the Idaho Secretary of State, but you can pay electronically online.
The mailing address is:
450 N 4th Street
PO Box 83720
Boise, ID 83720-0080
Differences in filing an ABN online vs. by mail
Most business owners choose to complete and submit the ABN form online because it is easier and cheaper.
The fees for registering an Assumed Business Name are:
- Basic registration: $25.00 (plus an extra $20.00 for mailed-in registrations)
- Expedited service is an additional $40.00
- Same-day service is an additional $100.00.
Conclusion
Whether you choose to file an Assumed Business Name for your business online or by mail, it can be a valuable tool to make your company a success. For business owners forming a legal entity, understanding how to start an LLC in Idaho can help put an ABN in context and clarify how it fits into your overall business structure. As long as you are aware of the small disadvantages of using an ABN, the upside far outweighs any negatives. To get your business off on the right foot, or if you want to manage or grow it, Tailor Brands has an extensive selection of tools and services that can help.
FAQ
No. You can operate your business without one. However, having an ABN opens up a lot more options when it comes to marketing and the way your customers perceive your business.
No. Due to a recent change in Idaho law, ABNs no longer need to be renewed and remain in perpetuity until canceled by the company that registered them.
No. In Idaho, more than one business can register the same Assumed Business Name. If protecting your business name is important to you, try trademarking it or using the name to register a new business entity.