Starting a business means making many decisions and learning a lot of new things. If you’re a sole proprietor or own a partnership, corporation, or LLC in Missouri, you can benefit from a DBA (“doing business as”). In some states it’s referred to as a “fictitious name” or “assumed business name”.
Once registered and legally recognized by the Missouri Secretary of State’s office, the moniker allows sole proprietors to gain a level of separation between themselves and their professional endeavors. A corporation or LLC can leverage a DBA to define a new product or service. With few negatives and considerable benefits, a DBA in Missouri might be the right thing for your business. This post should help you understand if it’s worth it for you and learn about the process of getting a DBA in Missouri.
What is a DBA?
The strategic planning surrounding the use of DBAs may seem a little murky to those who recently opened an LLC in Missouri. After all, you or a third-party business filing platform already negotiated The Show-Me State’s bureaucracy at least once. Why revisit filling out another round of legal documents, uploading them, and paying a modest fee when you already have a business entity name? The reason is that a DBA serves as a secondary name that public-facing organizations can use to brand, market, and connect with customers and clients.
It can be particularly helpful to secure a DBA that reflects consumer trends or better meshes with a new product line or service area. For instance, if your organization’s original name was “Joe’s Towing Service,” and now you own and operate an auto repair facility, it may make sense to switch to a fictitious name such as “Joe’s Towing & Automotive Repairs.” By doing so, you can avoid the time and effort of changing your entire business entity to adopt a more suitable name. It’s important to keep in mind that an assumed business name applies to every legal business structure in Missouri.
Benefits of a fictitious name
The benefits of registering and employing a fictitious name in Missouri are tied to each individual company’s goals. The DBA that an owner or operator registers is typically part of the business’s strategic planning. Although the process of securing an assumed business name in Missouri takes a little planning, these rank among the prominent reasons professionals either invest the time and energy or enlist the support of a business filing platform.
- A DBA in Missouri separates the primary business entity name from the fictitious name.
- It opens opportunities to brand and market products and services under different names.
- A smartly crafted DBA can attract the attention of new customers and clients.
- A “doing business as” name can merge your domain or online presence with other facets of the operation.
- A sole proprietorship gains an added level of professionalism by using a DBA instead of someone’s name.
- Partnerships and sole proprietorships can register under a DBA without a legally recognized business entity.
Disadvantages of a fictitious name
The single greatest disadvantage of operating under a fictitious name without a legally recognized business is the inherent lack of asset protection owners suffer. When go-getters use a DBA instead of forming an LLC or other entity, they are open to civil litigation. In some instances, the contracts they sign as a DBA may not be entirely enforceable. These are other disadvantages of a DBA Missouri business operators would be well served to consider.
- A fictitious business name must adhere to Missouri terminology restrictions.
- A DBA does not necessarily protect a trademark.
- Registering a DBA in Missouri does not stop other entities from using the same name. The Secretary of State notes that registration gives you no exclusive rights to the name.
- In order to secure exclusive rights to a DBA, you usually need to also file it as your trademark.
Consequences for operating with a fictitious name without registration
Business leaders are sometimes taken by surprise to learn that operating a DBA in Missouri without appropriate registration is a misdemeanor crime. You can actually get prosecuted for this offense. Missouri law says you must register before doing business under the name, and no later than five days after you start using it.
Tax considerations
Not every industry leader is intimately familiar with the tax code. It’s not unusual to believe that adding a DBA will also increase your tax liability. Truth be told, an assumed business does not increase your tax position or add complexity to state and federal filings. The only financial difference might entail adding the DBA on letterhead, checks, and marketing materials.
Filing for a Fictitious Name in Missouri
When preparing to file for a DBA in Missouri, it’s important to understand that the overwhelming majority of states have long-standing naming restrictions. Some are unique to the state, while others are largely standardized. Don’t add an entity ending such as LLC or Inc. that doesn’t match your business type. It’s also smart to check federal and state trademark records so you don’t infringe on someone else’s brand.
Name requirements
Under Missouri law, a fictitious name can’t suggest that the business is a government agency, and it can’t be seriously misleading (RSMo 417.210). Unlike LLC names, a DBA doesn’t have to be unique, and other businesses can register the same name. Avoid words that suggest a regulated business, such as bank, unless you’re licensed for it.
Begin with a Missouri Assumed Name search
Before you open a laptop and pull up the Missouri Secretary of State website, it’s prudent to have already composed a list of fictitious names. You will quickly learn that many of the popular options have already been taken. That being said, with a little effort and creativity, there are plenty of available DBAs that can further your business interests.
Steps to register your Fictitious Name in Missouri
The steps involved in registering a DBA in Missouri are not overly complicated. By following the appropriate steps, you or a designated party can acquire an assumed business name that helps your operation drive profits and achieve goals.
Step 1: Fictitious name search
Conduct a Missouri Secretary of State business search for the fictitious name you want on the SoS website. Start at the Business Registration Online Portal, click on Search by Name and proceed to enter options from your list. Because DBAs aren’t exclusive, the search mainly shows you who else is using a similar name.
Step 2: Create an account
Create an account on the Business Registration Online Portal. Once your account is set up, you can start the filing.
Step 3: Fill form
Fill out the Registration of Fictitious Name form. The document requires your LLC or corporate charter number, fictitious name, business address and ownership information. List every owner and their ownership percentage. All owners must sign.
Step 4: File and pay the fee
You can file online through the Secretary of State’s portal, or mail the form with the $7 fee to:
Missouri Secretary of State
Corporations Division
PO Box 778
Jefferson City, MO 65102
The fee is $7 either way; paying by card online adds a small convenience fee.
Your registration lasts five years. You can renew it in the six months before it expires. If it expires, you’ll need to file a new registration. To change the business address, file an amendment ($7). If the name or owners change, cancel the registration within five days (no fee) and file a new one.
Conclusion
Registering a DBA in Missouri opens up a significant number of opportunities for newly minted ventures as well as established organizations. You can leverage an assumed business name to bring foods and services into the marketplace under an eye-catching label. It’s also possible to use the title to highlight a branch of your growing LLC. For all intents and purposes, a DBA in Missouri is a positive vehicle that can be used to increase profitability and achieve goals. Once your DBA is registered, check which Missouri business licenses and permits your business needs.
If you are considering registering a DBA but don’t have the time to invest right now, there are third party business platforms that specialize in how to get an LLC in Missouri and filing for DBAs. These professional firms streamline the process while avoiding mistakes that may cause delays.
FAQ
The short answer is: No. Sole proprietors and partnerships do not necessarily have to have a DBA to operate in Missouri. But if you do business under any name other than your own legal name, Missouri law requires you to register it. Forming an LLC and filing a DBA is generally a good idea. A legally recognized business entity affords personal asset protection. The DBA helps brand the venture as credible and professional.
Missouri DBAs expire after five years. You can renew within the six months before the expiration date, using the same form, for $7. An expired DBA can’t be renewed, so you’d need to file a new registration.
The state does not have a limit on the number of fictitious names you can register. Each registration must be made and renewed separately.
To change the name itself, cancel your current registration (no fee) and file a new one. Address changes can be made with an amendment or at renewal.