Who are you doing business as?
March 28th, 2007 | by ScottIt appears that you're new here, if you like what you read, please subscribe to the news feed or sign up for the Leap eTips news and updates email list. Thank you for visiting :)
One of the early decisions you need to make when starting an online business is what to call it. Many people will use their surname in combination with something descriptive of their industry, for example, “Bannon Productions”. This is an easy choice and often the least expensive route as some states don’t charge you to register a business under your legal surname, however it’s not always the best idea for your business in the long run.
While it can certainly work, and there are exceptions to every rule, the fact is that it’s usually easier to brand your business with a more creative and targeted company name than the use of your surname will allow for. Would Gate’s Software have been as easy to brand as Microsoft was? Probably not.
If I had thought about this years ago I certainly wouldn’t have gone with Bannon Productions. That name is fine for the formal business entity, but hardly works well for the various projects I have been and am currently involved with. So I’ve had to work with subsidiaries and sub-divisions, all under the Bannon Productions umbrella over the years. This is a workable solution, but ultimately more costly in time and money than it would have been to have originally created a better fictitious business name to do business as.
The laws vary depending on your location for how to establish a fictitious business name, or DBA (short for “doing business as”), but generally the process is just to file the proper form(s) for your state or county and pay a fee that’s typically under $100. The county clerk’s office in your area should be able to walk you through the process.
While it may seem trivial, and you may be thinking that “Smith’s Websites” will be fine for your startup now, the decision will have an impact on your business forever so should be given serious considerations now. This is advice I wish someone had given me when I was starting out rather than just telling me “either use your surname or file for a doing business as license” as if it was a minor decision, and I hope it’s useful for you.
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