One of the most important parts of any business is its name. Your limited liability company’s name is your first impression with prospective clients, whether they hear about your business by word of mouth, drive past a billboard advertising your business on the freeway, or if they stumble upon your business as a result of a Google search.
One way to change your business name — or to add an additional name that your LLC can use interchangeably — is by filing a “doing business as” name application, commonly known as a DBA. There are many reasons to get a DBA — from marketing a new product line to granting a sole proprietorship the ability to use an assumed name — so this article will walk you through the process of registering a DBA for your North Carolina LLC.
What Is a DBA?
To begin, let’s quickly run down what exactly a DBA is. One point of confusion we often hear about is that a DBA is not a business entity, like an LLC, corporation, sole proprietorship, general partnership, etc. Instead, you can think of a DBA as an add-on feature of sorts.
The DBA allows you to create alternate business names for your entity, which you can then use interchangeably with your LLC’s official business name. In addition, for informal business entities that don’t have exclusive business names (like sole proprietorships and general partnerships), a DBA can be a great way to inject some additional professionalism into a business venture.
But let’s talk strictly about LLCs, shall we? Why would an LLC want an additional business name? There are several potential reasons, although they obviously vary considerably depending on what your business does. One popular reason is to differentiate a new product line from a company’s existing offerings.
Let’s say that you own a business called “Fine Footwear, LLC” that produces high-end shoes. If you decide to also start a new product line that sells inexpensive flip-flop sandals, you might want a way to differentiate this brand from your core business. In this circumstance, you could register a DBA for “Flip-Flops by Fine Footwear,” and you can use this name to market your new products, while your original product line remains unaffected if your sandal side business fails.
It could also be helpful if you decide to expand your local business into a new market. For instance, if you own a North Carolina-based plumbing business called “Charlotte Plumbing,” and you want to expand beyond Charlotte, you can register a DBA for “Raleigh Plumbing” and use that name in the Raleigh market.
The state of North Carolina does not provide any exclusive rights for DBA names. This means that if another entrepreneur likes your DBA name, they’re legally allowed to use it for themselves. They can even register an LLC or corporation using the name. Due to this reason, we are not fans of registering DBAs in this state.
If you want to create an additional name for your business, you can simply form an additional LLC. While this is certainly more expensive and more effort than filing a DBA, it’s worth it to get exclusive rights to your chosen name. That said, if you still want to register a DBA for your North Carolina LLC, we’ll outline the process in the next section.
How to Get a DBA for a North Carolina LLC
First off, we’ll note that North Carolina typically refers to DBAs as “assumed names,” but for the purposes of this article, we’ll continue to use both terms interchangeably because most states use the term “DBA.”
The process for obtaining a DBA in North Carolina starts with a search of the state’s business database to make sure the name you want is available and hasn’t already been registered by a formal business entity. Once you have determined that your desired name is available, you can fill out the Assumed Business Name Certificate.
The information required for this form includes the assumed business name you’re registering, your LLC’s official business name, your LLC’s North Carolina SOSID number, the nature of your business, your LLC’s business and mailing addresses, the county or counties where your LLC conducts business in North Carolina, your name, your title, your signature, and the date.
When you’re ready to file the form, you can submit it to your county’s Register of Deeds. You can find information about the Register of Deeds in each North Carolina county through this search function. In any county, you will need to submit a $26 filing fee along with your Assumed Business Name Certificate. Because these filings function on a county-by-county basis, the turnaround times may vary.
Should You Hire a DBA Service?
Would you rather pay a reasonable fee to a business services company and have them register your DBA on your behalf? While you can certainly save some money by doing it yourself, it’s nice to have the peace of mind that your new trade name was registered by a professional who really knows what they’re doing.
Here are a few of our favorite services for DBA registrations, all offering the same low price point of $99:
- IncFile: IncFile is one of the best business service providers available, and their DBA service is top-notch. IncFile receives tremendous customer feedback, with thousands of positive reviews all over the web. They also have plenty of experience, as they’ve been around since 2004 and they’ve formed more than 250,000 businesses.
- LegalZoom: LegalZoom actually has two different packages for DBA services, as their $119 Premium package includes a trial of their Business Advisory Plan. LegalZoom is one of the biggest names in the industry, and they’ve served millions of customers. It’s hard to argue with a track record like that!
- Swyft Filings: Swyft Filings really lives up to their name, as they’re one of the fastest business services companies you’ll ever find. Not only do they have some of the industry’s quickest turnaround times, but they also say that you can fill out their entire DBA application in “as little as 10 minutes.”
The doing business as (DBA) name varies more from state to state than most other business filings. In some states, a DBA grants you exclusive rights to your new assumed name, but in states like North Carolina, that simply isn’t the case. Due to this lack of exclusivity, we’re not fans of registering DBAs in this state.
Instead, it’s probably a better option to form an additional LLC if you want to be able to use multiple names for your business. This is certainly more of a hassle that registering a DBA, but at least you’ll have exclusive rights to your name.
If you’re looking for a new way to market your LLC in North Carolina, a DBA might not be the best idea.