Montana offers entrepreneurial-minded people a great deal of latitude in terms of acquiring a “doing business as” name. Commonly referred to as a DBA in Montana, an assumed business name allows companies and individuals to conduct profit-driving endeavors under a memorable moniker. If you start a business, a legally recognized business entity such as a corporation or limited liability company (LLC) can garner significant benefits by filing for and acquiring a DBA Montana residents and visitors remember.
It’s also possible for sole proprietors and partnerships to secure an assumed business name without a state-sanctioned company. If you are considering launching a startup in Montana or want to onboard a DBA to better distinguish the organization or its goods and services, the following information could prove invaluable.
What is a DBA?
To say the strategies surrounding Montana DBAs and the process of establishing one are complicated might be something of an understatement. For all intents and purposes, a Montana DBA can serve as a secondary label that is separate and distinct from the primary business entity. If you file an LLC in Montana called “Store ABC,” the DBA can be added and used to garner attention by calling it something along the lines of “The Everything All The Time Store.” You get the gist.
That being said, you only need to register an assumed business name if you do business under a name other than your legal name. If you do, Montana law requires you to register it with the Secretary of State (MCA 30-13-203). You can operate under the same moniker as your LLC or the surname often used by sole proprietorships. In fact, go-getters who perform essential services can form an LLC, work under their own name and adopt a DBA in Montana under either scenario. Depending on your operation and long-term goals, filing the paperwork needed to onboard a fictitious name could prove highly beneficial.
Benefits of a DBA
The benefits of a DBA in Montana are inextricably linked to the organization’s goals. The fictitious name that an industry leader registers in Big Sky Country helps lay the groundwork for a variety of important strategies. These are among the top reasons that decision-makers work their way through the sometimes tedious process of acquiring a DBA Montana, which they believe will stand out to residents and visitors.
- Adding a DBA in Montana allows organizations to separate the LLC filed with the state from its branding.
- A thoughtful fictitious name can be more attractive to consumers.
- Adding DBAs allows growing companies to define and label new services and product lines.
- A “doing business as” name can sync a domain or online presence with brick-and-mortar storefronts.
- Sole proprietors may gain an added measure of professionalism by working under a business heading instead of their given name.
- A DBA allows you to effectively register a business name even if you don’t have a business entity.
Disadvantages of a DBA
Perhaps the most consequential disadvantage of working under a DBA is that it does not provide the legal protection of an LLC, corporation, or another legal business entity. In these cases, partnerships and sole proprietors get the right to use an assumed business name by filing with the state. However, a Montana DBA alone does not insulate working people from lawsuits that could target personal wealth and assets. These are other disadvantages of a DBA worth considering.
- A DBA does not offer a separate tax identification.
- Must follow Montana’s fictitious name restrictions.
- Securing a DBA does not necessarily deliver trademark protection.
- Exclusive business naming rights are not necessarily guaranteed.
Consequences for operating with a DBA without registration
Montana law sets out one consequence for operating under an assumed name without registering it first. If you do business under an unregistered assumed name, you can’t bring a lawsuit in a Montana court under that name (MCA 30-13-215). That can make it harder to recover business-related losses, so it’s best to register the name before you start using it.
Tax considerations
One of the concerns that tends to hold people back from acquiring a Montana DBA revolves around taxation. Some worry that adding a fictitious name means they will be liable for another layer of taxes. Nothing could be further from the truth. Other than incurring the nominal cost of adding the DBA to checks and promotional materials, your business taxes remain static. Only business entities and people are responsible for paying taxes.
Filing for a DBA in Montana
The vast majority of states impose general DBA name restrictions, and some are unique to the landscape. In Montana, your assumed business name must be distinguishable from names and trademarks already registered with the Secretary of State, and it can’t use an entity ending such as “LLC” or “Inc.” that misstates what type of business you are.
Begin with Montana Assumed Name search
The first step in adopting an assumed business name is to start a running list of options. You’ll likely discover that many of the popular or high-visibility aliases have already been taken. Prioritize your list and run the names through the search engine on the Montana Secretary of State business services page. The Montana Business Search will reveal which names are reserved. You can then check the DBA possibility on the Montana Trademark Search and the USPTO’s Trademark Search tool.
Steps to file your DBA in Montana
Once you have identified a DBA that meets state guidelines and is available, these steps will help you complete the process.
Step 1: Create an account
First, create an account on the Secretary of State’s online filing system (biz.sosmt.gov).
Step 2: Fill out the registration form
Complete the form called Registration of Assumed Business Name. If you plan to register an LLC in Montana, file the Articles of Organization before the DBA.
Step 3: Pay the filing fee
The filing fee is $20. Expedited processing is available: $20 extra for 24-hour processing or $100 for 1-hour processing.
Montana’s Secretary of State accepts assumed business name filings online only.
Conclusion
Acquiring a DBA in Montana opens a wealth of opportunities for entrepreneurs and businesses throughout the state. The fictitious names help promote goods and services as organizations thrive and expand. You can name a new wing of your enterprise to highlight that facet and develop branding and marketing strategies. Overall, using an assumed business name is a strategic element that can be leveraged to achieve goals and drive profits. Check what other licenses and permits your Montana business may need.
If you are thinking about onboarding one or more Montana DBAs, there are professional support platforms that can handle the tedious process and bureaucracy. Working with an online organization that secures DBAs on a routine basis streamlines the process, avoids missteps, and allows industry leaders to focus on profit, growth, and goal achievement.
FAQ
No, not if you do business under your own full legal name. If you use any other name, Montana requires you to register it as an assumed business name. That being said, it’s typically in someone’s best interest to form an LLC to protect personal assets from business mishaps.
The state requires DBA renewals every five years at a cost of $20 per assumed business name. It’s important to renew your DBA within the 90 days before it expires. Failing to do so will result in the DBA being canceled. When that happens, it becomes available to whoever registers it next.
Yes. It’s common for professionals to make DBA changes, particularly when updating their business entity structure. Changing a DBA comes with a $20 processing fee in Montana.