DBA, or doing business as, is a great way for sole proprietors to do business under a different name. If you want to come up with a unique name for your freelance operation it can be handy to come up with a fictitious name, which is what DBAs are referred to as under Virginia state law.
That said, forming a DBA in Virginia isn't always simple, and there are a lot of things you need to consider. What's more, you need to know the advantages and disadvantages of a DBA before you consider one because a different entity, like an LLC, might be better.
The good news is that we're here to help. While DBAs may seem complicated, they don't have to be. This article takes you through what a DBA is in Virginia, along with how to register your business as a DBA. Furthermore, we cover some common questions about DBAs in Virginia. Read on to learn more below.
DBA Virginia
Step 1: Create a Business Plan
Step 2: Check to See if the Name Is Available
Step 3: Choose a Legal Entity for Your DBA
Step 4: Complete the Certificate of Assumed or Fictitious Name
Step 5: Pay the Necessary Fees and Submit the DBA Certificate
Contents
What Is a DBA?
DBA is a term for businesses that operate under a different name than their name. This can apply to companies that have an LLC with a different name in a different state, or individuals who want to run a freelance business under a unique name instead of their own.
For these reasons, you may also hear about DBAs being fictitious names. Plus, most Virginia state laws reference fictitious names instead of DBAs, so it helps to know that the terms are often used interchangeably.
What Is an Assumed Fictitious Name?
There are no differences between an assumed fictitious name and a DBA. When it comes to a DBA vs an LLC, the only difference is that a fictitious name is the term used to refer to DBAs by state law and registration. Therefore, they’re the same type of thing and only different when it comes to their names.
Do You Need a DBA in Virginia?
A DBA is necessary for people who want to use a fictitious name for their business. Essentially, someone whose name is Thomas may want to run their freelance operation as ContentKing for marketing purposes. In this case, you would need a DBA for your sole proprietorship.
However, LLCs and corporations can also leverage DBAs in Virginia. Ultimately, any business that wants to operate under a different name requires a DBA designation.
How Much Does a DBA Cost in VA?
DBAs in Virginia cost $10 to file. This means that you can visit the office of the clerk and drop off your paperwork for only $10.
However, if you want exclusive rights to the name you’ll have to trademark the name. The cost to trademark a name will vary, but if you file for the trademark yourself expect to pay between $250 and $350. However, if the name is more complex or you want to file for multiple DBAs, you may have to spend more money.
What Are the Advantages of a DBA in Virginia?
When it comes to DBAs in Virginia, there are a handful of benefits. You can enjoy more privacy, open business accounts, and take your marketing ideas to the next level. Learn more about some of the advantages of DBA in Virginia below.
More Privacy
First and foremost, it helps the public learn more about a company but keeps the owner’s name private. This means that you can keep your legal name out of the public eye if you’re a freelancer who writes content for a company; using a name like ContentGuy instead of your name can give you a layer of privacy.
While your information will still be available to the public, it’s not as obvious or easy to find with a DBA.
Opening Business Bank Accounts
Another benefit of being a DBA is that it makes it easier for banks to approve you for credit lines or credit accounts. While you can open business accounts as a sole proprietorship, it’s better to open accounts with a DBA to keep your funds separate.
What’s more, banks have a better chance of approving you for credit lines or new accounts if you plan on using a DBA. Furthermore, investors and other organizations who might want to fund your venture will likely prefer a DBA over a sole proprietorship.
Better Marketing and Expansion
One of the biggest reasons to choose a DBA is to have better expansion and marketing opportunities. With a fictitious name for your business, you can market to people without using a generic name. It also allows you to put this fictitious name on your marketing materials to promote your company.
Aside from basic marketing, you can also leverage expansion tactics with a DBA. For example, you can move a restaurant to another state or town and call it something that’s more in tune with that region.
What Are the Disadvantages of a DBA in Virginia?
DBAs also have some disadvantages in Virginia. For example, you may not have full control over the name and less liability protection than other companies. While these disadvantages can be managed with the right strategy, you still have to consider them when opening a DBA in Virginia. Learn more about them below.
Less Liability Protection
The benefit of starting an LLC with a unique name is the liability protection. While you have to pay more to start an LLC, the liability protection is usually worth the trouble. Unfortunately, a DBA without the legal structure of an LLC won’t have the same protection. This means that if you get sued your personal assets can enter the crossfire.
No Exclusive Rights to the Name
Many people who start a DBA believe that it gives them exclusive rights to the name. While it gives you the right to work under that name, it doesn’t mean the name is yours.
If you want exclusive rights to the name you’ll need to trademark it. This means that you have to file for trademark paperwork, which can cost several hundred dollars. Additionally, you can’t always use the name on paperwork, and that can confuse people.
How to File DBA in Virginia
Starting a DBA in Virginia is a simple process. There is less paperwork involved for sole proprietorships, but if you have an LLC you may need to offer additional paperwork. Follow the steps below to learn more about how to start a DBA in Virginia.
Step 1: Create a Business Plan
When you want to start any type of business it’s important to create a plan. You need a plan to outline what your business will evolve and turn into as it grows.
It’s also a good idea to outline who will be involved in the company, any names you want to choose, and whether or not you want to stay a DBA in the future. That said, you should also focus on writing an executive summary and focusing on the nature of the company.
Some additional information to include in a business plan includes:
- Competitive analysis
- An overview of the company and its members
- SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis
- A cover letter or title page
- Requests for funding
- Financial projections
Aside from this information, you’ll also need to include your name and your reason for getting into the business. It doesn’t hurt to include other information as well.
Step 2: Check to See if the Name Is Available
The next part of the process is to check to see if the name you want to use for your DBA is available. While you may want to use a DBA, that doesn’t mean you’ll have exclusive rights to it, and someone might already be using it in your state.
Fortunately, Virginia has a handful of tools that can help you determine if a business name is available. The best tool you can use is the Virginia State Corporation Commission website. This website helps you learn about names that are available or taken in Virginia.
While that will help you reserve the name in Virginia, if you want exclusive rights to the name you need to file with the United States Patent and Trademark Office.
You can check their database to see if the name is available and then file the appropriate paperwork for the trademark rights to the name. If you only have a DBA and don’t want other people using the name, this is the best way to go about registering your business name in Virginia.
Step 3: Choose a Legal Entity for Your DBA
A sole proprietorship is usually the entity that’s used for a DBA because you can usually create a different name for an LLC or corporation without extra steps. However, sometimes you may want to use a DBA for your LLC or corporation if you plan on expanding into Virginia.
In these cases, you’ll have to file similar paperwork but provide different information about your business. If you plan on staying as a sole proprietorship you don’t have any extra work you need to do, aside from filling out the right form.
Step 4: Complete the Certificate of Assumed or Fictitious Name
The next step is one of the most important ones that you need to follow. It involves filling out the Certificate of Assumed Fictitious Name, which is like your Virginia DBA registration form. On the application, you have to provide the following information about your business:
- The name of the person who will be operating the DBA
- The fictitious name that you plan on using
- Your address
While this is the only information you have to include if you’re a sole proprietor, LLCs will have to provide additional information and fill out a different form. In these cases, the entity must fill out the Certificate of Assumed Fictitious Name for business entities.
This form must include the following information:
- The original name of the business entity
- The fictitious name that the entity will register
- The type of entity
- The jurisdiction for where the entity was formed
- SCC ID number for corporations and LLCs
Other than the information required, the process for filing a DBA in Virginia is similar for both filing types. If you’re unsure about what the SCC ID number means, it’s the number your company is issued by the Virginia State Corporation Commission.
Step 5: Pay the Necessary Fees and Submit the DBA Certificate
When you want to be a DBA in Virginia you need to submit the DBA certificate along with your payment. The certificate can be filed online via the State Corporation Commission Clerk’s Information System. However, you can also mail your payment and certificate to the office of the clerk.
You can also visit the office of the clerk in person as well if you want to submit the paperwork that way. Therefore, you have a few options as long as you submit payment along with your certificate.
Once you submit the forms it will take about 2-3 days to get approved. You’ll know the process is complete when the state sends you a Fictitious Name Receipt.
Fictitious Name Certificate vs Release
If there comes a time when you no longer need your DBA, whether you’re making a career change or you’re totally rebranding, you can release your fictitious name. You can do this by filing a certificate of release and paying $10 to the office of the clerk.
If a fictitious name certificate allows you to operate under a certain name, a fictitious name certificate of release allows you to stop using that name.
DBA Virginia FAQ
If you still have questions about DBAs in Virginia, you’re in the right place. We answer common questions below.
Can You Have More Than One DBA in Virginia?
You can have more than one DBA in Virginia. The state allows you to register as many DBAs as you need to operate properly. Many companies will register multiple DBAs in Virginia to operate multiple brands under one company.
As long as you file the necessary paperwork and pay the fees associated with forming a DBA, you can have as many as you want. Still, multiple DBAs under one primary LLC are not the same as a series LLC, so keep this in mind when filing.
What Is the Statute of Fictitious Names in Virginia?
The Statute of Fictitious Names is a part of Virginia Code § 59.1-69. This code states that no person can do business in the state of Virginia under a fictitious name without filing a Certificate of Fictitious Name with the clerk of the commission’s office.
The certificate has to include the printed name and title of the individual signing the paperwork. It also has to state that the name won’t be used for malicious purposes like misrepresenting geographic location. Failing to file the appropriate paperwork will lead to fines, loss of licenses, and even jail time in some cases.
Do You Have to Renew Fictitious Name in Virginia?
Some states require you to renew your DBA every year or every other year; Virginia is not one of these states. Once you file the appropriate DBA paperwork with the Virginia State Corporation Commission, you don’t have to worry about filing it again or paying the $10 filing fee again.
The only time you have to go through the process again is if you plan on using another fictitious name or changing the fictitious name of your business.
Start a DBA in Virginia Today
Doing business as is a great way for sole proprietorships to instantly gain more trustworthiness. People love to see a business that has a unique name and strong branding, so filing for one in Virginia can help you take your business to the next level.
What’s more, many people will use a DBA to test the waters with their freelance business or small business before becoming a full-fledged LLC or corporation. So,, it gives you some wiggle room to experiment with your marketing and branding.
That said, when it’s time to start a DBA in Virginia you need to follow the right steps and consider the advantages and disadvantages of the structure. Typically, this comes down to whether or not you need liability protection or if you have the startup costs to start an LLC.