Having the right business name is essential to branding and growing, but sometimes a business鈥檚 official name isn鈥檛 perfect for reaching customers. If you’re starting a business and you鈥檇 like to use a business name that鈥檚 different from your business鈥檚 official one, that鈥檚 what a DBA is for. Here鈥檚 how to file a DBA in Vermont.
A DBA (doing business as) allows your business to operate under a name other than the one used for official state purposes.
Your official business name might be your personal name if running a sole proprietorship, or something with 鈥淟LC鈥� if you have a limited liability corporation. A DBA can be entirely different, allowing you to reach customers under a name that鈥檚 more suitable for branding and marketing.
For example, consider John Doe who鈥檚 a self-employed plumber working in Burlington. He operates as a sole proprietor, and thus would likely have to use his name 鈥淛ohn Doe鈥� for advertising, depositing checks, and everything else. A DBA would let him operate as 鈥淏urlington Plumbing鈥� instead, which is much more effective for reaching customers.
Filing a DBA doesn鈥檛 change your business structure or status, but is simply a different name to use. It can be used by any type of business, including sole proprietors, LLCs, corporations, partnerships, nonprofits and others.
Vermont refers to a DBA as an 鈥渁ssumed name,鈥� and used 鈥渢rade name鈥� previously. Assumed name, trade name, DBA and doing business as all refer to the same thing — a name that your business can use. Sometimes a DBA is also referred to as a 鈥渇ictitious name,鈥� but Vermont doesn’t use this term.
There aren鈥檛 many disadvantages of a DBA per se, but business owners should understand two significant limitations:
Vermont Law () requires businesses to register any name that they鈥檙e going to use within the state. Using a business name other than any officially registered one can result in fines of $50 per day (maximum $10,000). Official names include the name that your business is registered under, and any registered assumed names for the business.
There can be other legal consequences for operating without a DBA registration, too. Your business won鈥檛 have legal protection if there鈥檚 a dispute over using the name. You also could face a defamation or infringement lawsuit, if another business has officially registered the name.
If your business is an LLC, partnership or corporation, using a non-registered name might help an opposing attorney pierce the corporate veil. This could leave your personal assets vulnerable even if your business鈥檚 structure would normally give protection.
Finally, using a non-registered name could force your business to establish its brand from scratch. Should you be forced to stop using the name, you鈥檇 have to rebuild the business under a different one.
There is one exception to the assumed name requirement. Under, single business owners don鈥檛 have to register their business name if using their full name. For example, 鈥淛ohn Smith Carpentry鈥� wouldn鈥檛 need to be registered.
Registering an assumed name does not affect how your business is taxed. Your business will continue to be taxed based on its underlying legal structure (sole proprietorship, partnership, LLC, corporation, etc.).
The process of registering a DBA in Vermont is straightforward. It requires filing a simple assumed name form, and paying a $50 assumed business name fee.
Any business name, including assumed business names, must meet certain requirements set by state law (). are as follows:
A Vermont assumed name search will show you whether a business name is available, meaning that no other business in the state has a legal claim to it. The Vermont Secretary of State鈥檚 Corporations Division has a business name search:
You can also select 鈥渃ontains鈥� for a more thorough search, although your name should be distinguishable from anything that鈥檚 not an exact match. You might consider a trademark search in case a name is trademarked but not registered, but this is quite unlikely.
You can register a Vermont assume name online, which is the faster and preferred option. Mail-in assumed name registration is also available, though.
The registration form for an assumed name is fairly simple. You can complete it online through the (account required). You鈥檒l be walked through each step after choosing to register an assumed name.
To register using a mail-in form, you鈥檒l have to the Vermont Secretary of State. The form will be sent to you, and is self-explanatory once you receive it.
Note: A Vermont Trade Name (DBA) Registration Form is available via an online search. This uses the state鈥檚 old name for a DBA, however, and isn鈥檛 up to date. You鈥檒l need to request a form from the Vermont Secretary of State instead.
Complete the online registration, or send the mail-in form to:
Business Services Division
128 State Street
Montpelier, VT 05633.
You can call 802-828-2386 or 888-647-4582 if you have any questions.
A $50 assumed name registration fee is required when submitting your form. The fee can be paid by credit card if filing online, or check if filing via mail.
You鈥檒l receive confirmation once your assumed name registration has been processed. Processing time for online filings is normally 1 business day. Processing time for mail-in filings can be 7-10 business days.
You can request a certificate of assumed name from the Vermont Secretary of State, should you ever need one.
Assumed name registrations are good for 5 years in Vermont, after which you鈥檒l. Make a note somewhere so that you don鈥檛 forget to renew. Renewals are best submitted online, through BizFilings.
Filing an assumed business name online, through Corporations Division鈥檚 BizFilings, is the preferred method. You can immediately file online, and processing takes just 1 business day.
Filing by mail requires first the Vermont Secretary of State. You鈥檒l mail the form to Business Services Division, 128 State Street, Montpelier, VT 05633 after you receive and complete it. The state typically takes 7-10 business days to process, once the form is received.
The filing fee of $50 is the same, regardless of how you submit your business鈥檚 information.
Registering an assumed name will let your Vermont business market and operate under a name other than its official one. That鈥檚 often a better option than using your personal name or needing to include a designator like 鈥淟LC,鈥� and registering an assumed name is both simple and inexpensive. Filing a DBA for your Vermont business could be the next step to growing your business and its brand.
No, operating with an Assumed Name in Vermont is optional. It鈥檚 only necessary if you want to operate under a name that鈥檚 different from your business鈥檚 official name.
The filing fee for a Vermont Assumed Name is $50. This fee is the same whether you file online or by mail.
Yes, Vermont assumed name registrations are good for 5 years. You鈥檒l need to renew a DBA after this time.
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