What’s in a name? When it comes to your small business, the name can influence the enterprise’s success or failure. There are various ways of attaining a business name in West Virginia, and a Doing Business As, or DBA, is among the most common. Filing a DBA in West Virginia is not a difficult process. Once completed, DBA registrations do not expire, and there are no additional fees.
What is a DBA (“Doing Business As”)?
In a nutshell, a DBA (Doing Business As) allows a business to operate under a name different from its legal name. For instance, a sole proprietor, who must use their own name for their business, can use a DBA instead. John Smith may choose a DBA such as Smith’s Lawn Service.
After registering with the state of West Virginia, you can use the DBA as a trading name. Such registration is required. You cannot just decide to use a different trade name on your own.
DBAs apply to all types of businesses, whether your business structure is an LLC, partnership, corporation, or sole proprietorship.
Benefits of a DBA
A DBA allows you to have a business name registration even if you don’t have a business entity. It can help with branding, along with protecting privacy if the alternative is using your own name. When banking, you can open an account under the DBA name. Payments are made to the DBA, so the owner remains unidentified.
If you are a sole proprietor or a single-member LLC with no employees, you do not need an Employer Identification Number (EIN) with a DBA. It is not a separate legal entity.
A DBA offers greater flexibility. If you expand your enterprise, you might find that your business name is already in use in that area. By using a DBA, you can grow your business under a fictitious name.
Many entrepreneurs operate multiple types of businesses. Rather than use a company name for entirely unrelated product lines, the brands have separate DBAs under the owner’s or the company’s direction.
Disadvantages of a DBA
Unlike an LLC, a DBA does not grant liability protection, as it is not a business entity. A DBA just permits operation under a fictitious name other than your company’s name. Failing to register a DBA means you could face legal action from the company with the same, registered name.
While having a DBA does not protect you from litigation filed by a company with a similar name in your state, it can reduce the risk. However, real protection arises from creating a business structure, such as an LLC, which stands for Limited Liability Company, or corporation.
A DBA does not provide name rights in other states. Another business in West Virginia can have a DBA name similar to that of your company, as long as it adheres to the name requirement restrictions.
Consequences of operating with a DBA without registration
Operating a DBA without registration is a misdemeanor in West Virginia. If charged and convicted, the consequences could include:
Fines: The fine for operating a DBA without registration is not more than $500. This amount does not change even if there are subsequent offenses.
Jail: There is the possibility of a sentence of up to six months in jail if found guilty of operating a DBA without registration.
Tax considerations
There are no tax considerations when it comes to DBAs. Since it is not a business structure, it doesn’t change the way your company is taxed. Sole proprietors still report the DBA’s income and expenses on Schedule C of their personal income tax return.
Filing for a DBA in West Virginia
Use the West Virginia One Stop Business Portal to file for a DBA online. An LLC or corporation can also apply via mail by completing and returning Form NR-3, the Application for Trade Name (DBA).
Sole practitioners and general partnerships registered with the West Virginia State Tax Department should file Form TN-1, Trade Name DBA Registration.
Name requirements
Naming restrictions: West Virginia law requires that the DBA name requested is distinguishable from any other name registered in the state. The name must be unique. A common reason for business filing rejection is that the desired name is already in use in West Virginia.
Checking name availability: You can check for name availability by performing a WV business entity search. You can also file a Name Reservation, which allows you to pay a fee to reserve your chosen name for up to 120 days if preparing a business registration.
What does not make a name distinguishable: Changing minor details in a DBA name does not make it distinguishable from a registered name. For instance, using apostrophes, singular and plural words, corporate name endings, or word separators such as “and” or “the” does not offer a significant distinction. The same holds true for separating or combining words in a registered name. For example, if a business is registered as Dave’s Food Market, you cannot DBA as Dave’s FoodMarket.
Prior approval for certain terms: You cannot DBA as a bank, engineering firm, or other entities requiring licensing and extensive regulation without prior approval.
Using a designator: You cannot use a designator, such as an LLC or Corporation, unless your business structure is that of an LLC or corporation. A single-member LLC can use a designator, but not a sole proprietor.
Begin with the West Virginia Assumed Name Search
LLCs and corporations can get started by visiting the West Virginia Assumed Name Search to ensure the desired name is not already taken. If the name is available, you can begin the formal DBA registration process. Sole proprietors and general partnerships must confirm DBA name availability through the West Virginia Tax Division.
If you are a “foreign” company, which simply means registered out of state, and your home state’s DBA is not available in West Virginia, you must register a Forced DBA name. The company must submit a forced DBA letter of resolution authorizing the use of the forced DBA name in West Virginia.
Steps to register your West Virginia DBA
- Step 1: Choose an available, unique business name.
- Step 2: Register your DBA name with the West Virginia Secretary of State, either online or by mail.
- Step 3: Receive your DBA registration within five to 10 business days or pay for expedited service.
Filing online vs. by mail
Filing a West Virginia DBA online is the most efficient method. Begin by creating an account. Then select the right form for your business structure. Both forms require the DBA name, the name and address of the registering entity, and the address of the principal place of business.
The mail option involves printing the correct form, filling it out, and mailing this DBA filing along with a check for fees to any West Virginia Secretary of State Hub Office. These are:
WV One Stop Business Center
13 Kanawha Blvd. W.
Suite 201
Charleston, WV 25302
North Central WV Business Hub
153 West Main Street
Suite G – Third Floor
Clarksburg, WV 26301
Eastern Panhandle Business Hub
229 East Martin Street
Martinsburg, WV 25401
File one original, and two if you want a filed stamped copy returned to you.
DBA costs
When filing for a DBA by mail, there is no charge for the standard five to ten-day service options for sending the license. Expediting the service involves the following costs:
- 24 Hour Expedite: Enclose the $25 fee with any other fees.
- 2-Hour Expedite: The fee for this service is $250, along with any other applicable fees.
- 1-Hour Expedite: The fee for very fast service is $500, along with any other fees.
You must mark all documents with the appropriate expedited request.
If you are a sole proprietor or general partnership, West Virginia does not charge a DBA filing fee. Other types of business structures, such as an LLC or corporation, are subject to a $25 fee.
Conclusion
Filing a DBA in West Virginia is a relatively straightforward and inexpensive matter. For some business structures, such as sole proprietors, there is no cost. For small businesses, a DBA in West Virginia has several advantages and few drawbacks. For businesses forming a legal entity, understanding how to form an LLC in West Virginia can help clarify when a DBA is optional versus when your entity name must be used.
A lack of DBA registration can lead to misdemeanor charges, fines, and even potential jail time for those who ignore the filing process.
FAQ
No. A DBA is optional, but it’s required if you operate under a name different from your legal business name.
No. A DBA is not a business entity, does not provide liability protection, and does not change how your business is taxed.
Operating an unregistered DBA is a misdemeanor and can result in fines of up to $500 and possible jail time of up to six months.