When you register your LLC in NC, the LLC gets an official legal name. You’ll need to use the legal name for some official purposes, such as paying taxes.
You might want to have another name that you can use for operating your business. Perhaps a different name would better promote the nature of your brand. You could also choose to have multiple alternative names that you could use for different aspects of your business.
These names are known as DBA names or assumed business names. In North Carolina, you must register your chosen assumed business names before you can use them.
A DBA (which is an acronym for 鈥淒oing Business As鈥�) is a business name that is different from the legal name of the business. A DBA is sometimes referred to as a 鈥渇ictitious name鈥� or a 鈥渢rade name.鈥� In North Carolina, a DBA is most commonly called an 鈥渁ssumed business name.鈥� 听
In North Carolina, you need to register an assumed business name with your local Registrar of Deeds before you can begin using it. Once the name is registered, you can operate your business under that name. You will, however, still need to use your LLC鈥檚 legal name for some official purposes, including paying taxes.
Any type of business can use an assumed business name, including a sole proprietorship, partnership, LLC, or corporation.
If you鈥檝e already formed your LLC, an assumed business name might better convey your brand than your LLC鈥檚 legal name. For example, if your LLC鈥檚 legal name is bland or matter of fact, a more descriptive, catchy, or memorable assumed name might work better as the name of a restaurant or store or as the name you use in your advertising.听
Alternatively, you could register an assumed business name even if you don鈥檛 have a formal business entity. 听
Like sole proprietorships and single member LLCs without employees, business owners who have an assumed business name without a formal business entity do not need to get an Employer Identification Number (EIN) from the IRS.
Using an assumed business name on its own will not provide any liability protection if you have not also formed an LLC. Unlike registering an LLC, registering an assumed business name does not create any kind of formal business entity. It鈥檚 having the LLC, not the assumed business name, that may provide you with protection from personal liability for the debts of the business. 听
No. Having an assumed business name is completely optional.听
Deciding to get an assumed business name will depend on your business strategy. Think about how you want to brand your business. Do you want to use your LLC鈥檚 legal name for all purposes? Would an assumed name be easier to remember, and/or would it make your branding stronger?
Your assumed business name can be a powerful tool for branding. When you choose a name, think about selecting one that will stick in the minds of your customers and potential customers.听
Ideally, your assumed business name should also convey something about your business. That could be by using words that describe what your business does, or it could be just by conveying a certain tone or mood, such as cute or traditional, that matches the 鈥渇eel鈥� of your business.
The name should not be the same or substantially similar to the names of other businesses in the state.
North Carolina prohibits businesses from using in their business names without official approval. For example, you can鈥檛 use the words 鈥淏ank鈥� or 鈥淎rchitect鈥� unless you can prove you have the legal qualifications to use them.听
Also, check with the county where you are requesting your assumed name to see if it has any additional requirements.
Before going any further, you should check to make sure another business in North Carolina has not already claimed your desired assumed name. Do a search online on the Secretary of State鈥檚 Assumed Business Name search page to find existing business names in the state.听
To register your North Carolina DBA, fill out the 听form. You can register up to five different assumed names on a single form.
Before you turn in your Name Certificate form, make sure that you have included:
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