https://bizdeparture.com Just another WordPress site Sun, 27 Nov 2022 09:36:58 +0000 en-US hourly 1 https://wordpress.org/?v=6.1.1 https://bizdeparture.com/wp-content/uploads/2022/08/cropped-favicon-32x32.png https://bizdeparture.com 32 32 How to Find the Registered Agent of an LLC or Corporation in Illinois https://bizdeparture.com/how-to-find-the-registered-agent-illinois/ Thu, 24 Nov 2022 13:08:29 +0000 https://bizdeparture.com/?p=334 The identity of an Illinois LLC or corporation is a public record. This means finding the registered agent is a simple process of searching the Department of Business Services database on the Office of the Illinois Secretary of State’s website.

All you need to complete a search is a file number or part of the name of the entity you’re looking for.

What Is a Registered Agent?

A registered agent, also known as a resident agent or statutory agent, is a business entity or individual that’s authorized to receive official documents and papers for certain businesses. Official documents usually include tax documents, official government correspondence, and legal service of process papers.

A registered agent isn’t necessarily the owner or controlling officer of the business, although they can be. If you’re trying to find an owner of a business, you can sometimes find out who they are using the same process used for finding the registered agent. This is because the manager, partner, or corporate officer of the entity you’re looking for will sometimes be its owner. However, when you look up an entity on the Illinois Secretary of State’s website, it won’t explicitly state who the owner is.

Who Can Be a Registered Agent in Illinois?

In Illinois, Limited Liability Companies (LLCs), Limited Partnerships (LPs), Limited Liability Partnerships (LLPs), and corporations (both profit and nonprofit) must have a registered agent. Generally speaking, anyone can be a registered agent in Illinois if they:

  • Are at least 18 years of age;
  • Are a resident of Illinois;
  • Have a physical street address (not a P.O. Box) in the state where the business is registered, and
  • Are available to receive documents during normal business hours.

Note that either an individual or an artificial legal entity, such as an LLC, LP, LLP, or corporation, can serve as a registered agent.

How to Lookup the Registered Agent and Owner in Illinois

Figuring out who the registered agent is for a business registered in Illinois can be done online and is a simple process.

Step 1: Type of Search

Note: If you are located outside of the U.S.A, you might be facing issues with accessing the Illinois Lookup tool as it is restricted to only being accessible within the U.S.A. You can use a VPN in between your internet Connection to get around this restriction. 
 
Go to the Office of the Illinois Secretary of State website’s Corporation/LLC Search/Certificate of Good Standing searchable database and choose the type of business you think the registered agent you’re looking for is assigned to. If you’re not sure, you can select, “Corporate and LLC.”

Step 2: Choose a Search Method

Depending on the type of search you’ve chosen, you can search for a business entity by using a Name, Key Word, Partial Word, or File Number

Step 3: Search Results

This is where you go through the search results to find the business that has the registered agent you’re looking for. Once you find it, click on the business name. It’ll take you to a page that lists a wide range of information about the entity, including
 
- Type of entity
- File number
- Status (active or inactive)
- The entity’s incorporation or admission date
- Registered agent name and address
- Name and address of key officers (if a corporation) or managers (if an LLC)
Address of the entity’s principal office

As you can see in this example, Apple Inc. has C T Corporation System as its registered agent, which is a Service by Wolters Kluwer.

How Can I Find the Registered Agent of a Nonprofit in Illinois?

The process for finding the registered agent of an Illinois nonprofit corporation is the same as looking for a for-profit corporation or LLC. In Illinois, nonprofit organizations are generally structured as corporations.

Conclusion

If you want to find the registered agent or key individuals of an LLC or corporation in Illinois, all it takes is a few minutes of searching on the Illinois Office of the Secretary of State’s website. You don’t even need the full name of the entity you’re looking for, although having a complete name or file number can save time and limit the number of potential search results.

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How to get a DUNS Number https://bizdeparture.com/how-to-get-a-duns-number/ Fri, 18 Nov 2022 14:59:39 +0000 https://bizdeparture.com/?p=323 A DUNS Number is a unique nine-digit number that identifies businesses worldwide. It’s used by companies to establish credit, obtain licenses, and secure contracts with other businesses.

Getting a DUNS Number is easy and free – you can apply online by providing basic information about your company and its products or services.

Once you have your number, you'll be able to do business with the federal government and collaborate with foreign companies. 

What is a DUNS number?

Dun & Bradstreet’s data universal numbering system (DUNS) is one of the world’s most widely used business credit scoring systems. It was developed in 1963 to address the lack of standardized business information, making it difficult for lenders and other creditors to assess risk. To solve this problem, they created DUNS, which assigns each business a unique nine-digit number. 

The DUNS system assigns a unique identifier for each business in its database. The number is widely recognized and accepted by companies worldwide as a standard way to identify businesses. D&B® maintains a database of more than 265 million businesses worldwide, which includes information on more than 60 million business locations.

DUNS Numbers are used by many businesses and organizations worldwide and are often required when applying for contracts or loans. These numbers are also used to track businesses for credit reporting. Government agencies and large corporations also use them to identify and track businesses. 

When Do I need a DUNS Number?

You may need a DUNS Number if you’re doing business with the government or a large corporation or looking to get business credit. Once you have your DUNS Number, it will be listed on your D&B® profile, which is available to creditors and other businesses upon request. A DUNS Number identifies a company’s D&B® business credit file and can include the following: 

  • company name
  • company address, 
  • company contact number
  • headquarters, branches, subsidiaries, etc.
  • scores and ratings that measure different financial health indicators. 

All these factors combined are referred to as the Dun & Bradstreet Live Business Identity. A DUNS Number can be used to:

  • request your business credit report containing your company’s D&B® scores and ratings, suits, liens, or judgments
  • your company’s payment history
  • any other information that can be used to help establish your company’s creditworthiness as a customer, supplier, or partner.

Credit history

Just like you need to build your personal credit history to get approved for loans and credit cards, you also need to build your business credit history. A DUNS Number is step 1 in this process. Once you’ve registered and received your DUNS Number, all financial transactions of your business from that point forward will count towards building your business credit history. 

Having a good credit history is essential for businesses because it shows potential lenders that the company is financially responsible. A strong credit history can also help businesses get better loan terms and credit lines.

Doing business with government entities

While obtaining a DUNS Number is optional, having one is required for possible contract vendors and federal grantees or cooperative agreement applicants. Many government institutions conduct risk assessments on prospective partners or suppliers as part of the vetting process. 

You may also need a DUNS Number when submitting a bid. The organization or corporation requesting the D&B® Number can use it to: 

  • help verify the legitimacy of a company 
  • access the D&B® scores
  • access the ratings in the bidder’s business credit report.

Working with foreign companies

A DUNS Number is an essential tool for collaborating with foreign companies. It provides a quick and easy way to establish trust and credibility between businesses. As a result, it is an essential tool for businesses operating in today’s global economy. 

Separating personal and business finances

In addition to obtaining an employer identification number (EIN) and registering your business entity, a DUNS Number is another way to ensure that your business and personal finances are kept separate. With a DUNS Number, you can build your business credit identity separate from your personal credit history. A DUNS Number can also ease the stress of funding your company from your personal credit. 

How to get a DUNS Number

Check if you already have one

Before applying for a DUNS Number, you should check if you already have one. D&B® provides two ways to accomplish this:

  • You can either navigate to the D&B® website to do a lookup or
  • You can call the D&B® on their toll-free number at 1-866-705-5711.

If you choose to use the online lookup tool, you’ll have to provide at least the following compulsory information:

  • Legal business name
  • State and country

If you found your company, you can request your DUNS Number via Email and receive an email similar to this one:

What you will need to apply for your DUNS-Number

You can apply for a DUNS Number online through D&B®’s website by providing some basic information about your business:

  • Legal Company Name
  • Company address
  • Trade or DBA company name
  • Physical address
  • City, state, and zip code 

How to apply

You can follow these steps: 

  1. Open the “Get a DUNS Number” Website.
  2. Select your country and preferred language, then click “Continue.”
  3. Select “I’m starting a new business.” 
  4. Enter your personal information, then click “Continue.”
  5. Enter your business information, then click “Submit.”
  6. Once your request has been processed, you will receive your DUNS Number via email. 

Once you have your DUNS Number, it will be listed on your D&B® profile, which is available to creditors and other businesses upon request.

Register a DUNS Number

Applying for a DUNS Number is straightforward, but you must first decide on your company’s business structure (LLC, C-Corp, S-Corp, sole proprietorship, etc.) and register the entity type with your state. You must also provide your business name, address, and contact information. 

Information about your business, such as the products or services you offer and the size of your company, is also required. Once you have gathered the required information, you can begin the application process by visiting the D&B® website. The website will walk you through the steps necessary to complete your application and obtain your DUNS Number.   

It's also important to remember that DUNS Numbers are location specific. That means each company's branch, division, or headquarters needs its own DUNS Number.  

Reporting past business transactions

With a DUNS Number in place, public records like judgments and bankruptcies can be added to your company’s credit report. Since most merchants and suppliers don’t report directly to D&B, you’ll have to provide your own transaction history for a fee if you want it to factor into your score.

Frequently Asked Questions

How long does it take to get a DUNS Number?

Businesses that apply for a DUNS Number as part of a federal government contract could receive their number in as little as 24 hours. You also have the option to expedite your DUNS application, but it will cost extra. Otherwise, it may take up to 30 days to acquire a DUNS Number. Allow for this processing time when applying for your DUNS number, and submit your application well ahead of when you require your finished registration.

Can I get a DUNS Number as a Sole Proprietor?

Yes. A D-U-N-S number is available to all types of businesses, including sole proprietors. 

Does it cost money to get a DUNS Number?

DUNS Numbers are free from D&B® for all entities doing business with the Federal Government. If you need a number fast, you can expedite your DUNS application through DUNSFile, but it will cost you $229.

Is a DUNS Number the same as a Federal Tax ID Number?

A DUNS Number is distinct from your federal tax ID Number (also known as your EIN). Although a DUNS Number and a Federal Tax ID number serve different purposes, they are both essential for businesses.

What’s the difference between DUNS and EIN?

DUNS and EIN are two different ways that businesses can identify themselves. However, a DUNS Number is used for business credit reporting, while the IRS issues an EIN for tax purposes.

What’s the difference between SAM and D&B® DUNS Numbers?

SAM (System for Award Management) and D&B® DUNS Numbers may seem similar, but they have some important differences. SAM is a government database that contains information on businesses that are registered with the government. D&B® DUNS, on the other hand, is a private database maintained by Dun & Bradstreet. It contains information on businesses of all sizes, both public and private. 

The biggest difference between the two databases is the amount of information each contains. SAM only has basic business contact information, while D&®DUNS has much more detailed data, including financial information. This makes D&B® DUNS a more useful tool for businesses looking for new partners or suppliers.

Final thoughts

A DUNS Number is a unique nine-digit number assigned to businesses by Dun & Bradstreet. It helps companies verify their identity and creditworthiness with suppliers, partners, and other businesses. D&B® is a respected source of business information; having a DUNS Number can help build credibility for your business.

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Do I Need a DBA for a Sole Proprietorship? https://bizdeparture.com/do-i-need-a-dba-for-a-sole-proprietorship/ Mon, 14 Nov 2022 10:59:44 +0000 https://bizdeparture.com/?p=313 If you operate a sole proprietorship, you might wonder if you have to register a DBA, or “doing business as,” for your business.

The short answer is that no, you most likely don’t need to file a DBA.

However, there are a few circumstances where you could be legally required to do so, or there will be distinct advantages to having a DBA for your sole proprietorship.

Naming Your Business

You can use almost any name you want for your business, subject to some practical limitations. For example, you probably can’t (and shouldn’t) use vulgar or inappropriate words in your business’ name. Then there are situations where you can use certain names, but only in certain situations.

For instance, if you’re registering a DBA for your sole proprietorship or partnership, you can’t use terms that imply your business has a different legal form. So a sole proprietorship could use “Acme Consultants” as its DBA but not “Acme Consultants, Inc.” or “Acme Corporation.” Other business name limitations generally include:

  • Not using professional titles or certifications that don’t apply or aren’t present with the business.
  • Using a name that implies the business is a government entity.
  • Using a business name similar to another business’ name.

One thing to keep in mind is that if you use a formal business structure (like a corporation or limited liability company), you’ll need to have a registered agent to accept legal documents on the behalf of the business. An owner, partner or member of the business can serve as the registered agent. Still, it’s usually more convenient and practical to assign someone else, such as a registered agent service.

Advantages of Having a DBA

If you decide to get a DBA for your business, nothing changes about your business besides the fact that it has a business name that’s different from its legal name. But as mentioned earlier, there are a few benefits to filing a DBA for your business if you have a partnership or sole proprietorship.

Legally Operating Your Business

You don’t have to have a DBA for your business just because it’s a sole proprietorship. But if you market or operate your business with a name that’s different than its official name (which would be your personal legal name, in the case of a sole proprietorship), then you must file a DBA.

Opening a Business Bank Account

Banks will often only allow you to open a business bank account if your business has a DBA. Some exceptions could exist if the bank is located in a state that doesn’t have this requirement.

Marketing Your Business

Depending on what business you’re in, having a memorable name can help expand and marketing your business. “John Brown Bakery” doesn’t have the same impact on potential customers as “Magical Bakery Creations and Treats.”

Forming an LLC Instead of a DBA

Despite the above-discussed advantages of a DBA, it still has some limitations. One of the most notable is that it provides no liability protection for the owner. So if your business gets sued and loses in court, you could be personally liable for paying the legal judgment even if you have a DBA for your business.

Forming an LLC, or Limited Liability Company, allows you to avoid this major drawback and avoid personal liability for the legal debts and judgments of your business (subject to a few limited exceptions, such as “piercing the veil”).

Conclusion

If you operate your business as a sole proprietorship, you don’t need to have a DBA. The only major exception is if you’re using a name for your business that’s different from its legal name. That said, certain advantages come with having a DBA, such as opening a business bank account and having a name that makes it easier to market your business. The biggest limitation of a DBA is that it offers no personal liability protection if your business gets into financial or legal trouble.

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Do I Need a DBA for an Online Business? https://bizdeparture.com/dba-for-online-business/ Fri, 11 Nov 2022 13:37:34 +0000 https://bizdeparture.com/?p=307 As a general rule, you don’t need to file a DBA just because you have an online business. This answer can change based on what you sell and how you market your business online.

As a result, there are situations where you may need (or want) to register a DBA for your online business.

When Do I Need to File a DBA for an Online Business?

If your online business name is the same as your business's official name, you don’t need to file a DBA. But if any of the following situations apply to you, then you should consider registering a DBA for your business.

Selling Products Regulated by the Government

If you’re selling a product that’s regulated by the government, such as tobacco, alcohol or health products, you’ll almost always need some type of business license. These licenses may exist at the federal, state and/or local level. Depending on how you operate and market your business, you may also need to file a DBA in addition to getting a business license. This is particularly true if your online business uses a trade or business name that’s different from the legal name of your business.

Selling Products as a Branded Name

Selling someone else’s branded products online doesn’t mean you need to register a DBA. However, you might need to file a DBA if you’re selling one of your products with a name or brand that’s different from your business's official name.

Platform Requirements

Of the major online selling platforms, such as Amazon, Shopify, Etsy, or Mercari, none of them require you to file a DBA to sell on their websites. Yet this doesn’t mean an online selling platform isn’t allowed to impose such a requirement. You should check the terms of service and other selling requirements if you’re not sure about your current online selling platform.

Should I Get a DBA as a Sole Proprietor, or If I Already Have an LLC?

Structuring your business as a sole proprietorship, corporation, or limited liability company (LLC) will not typically require you to create a legal requirement for you to file a DBA. The DBA requirement often arises if you’re using a business name online (or anywhere else) different from your legal business name.

One of the reasons people think they might need DBA is because they think it will offer liability or legal protection in case their business gets into legal or financial trouble. For example, if someone wants to sue a corporation or LLC, unless the plaintiff can pierce the corporate veil, the owners of the corporation or LLC won’t need to worry about being personally liable for the debts or legal liabilities of the business they own. Filing a DBA doesn’t offer this or any other legal liability protection.

For What Online Businesses Do I Need a DBA?

You need a DBA for your online business if it carries out its operations using a name different from your business's legal name. For example, if your business’s official name is “Archie Computer Development, LLC” but you sell custom gaming computers online as “Hardware Gameware Tech,” then you need a DBA. So it’s this business name discrepancy that creates the legal need to register a DBA, not where you sell on the Internet.

That being said, there could be nuances to your business. Or there could be policies of specific online platforms where it might be a good idea to file a DBA, even if it’s not legally required. For more information, please see:

Can a DBA Protect My Online Business Name?

No, it can’t. The only thing that can stop someone else from taking your online business name is to get a trademark for it.

Many online selling sites that allow you to have a custom shop name may stop someone else from taking the exact online shop name as you. However, even with these policies in place, they may not stop someone else from creating a very similar online business name as yours. For example, on Etsy, if your shop name was “Cardmaker Shoppe,” someone else could create an Etsy shop called “Cardmaker’s Shoppe.”

Where Can I Apply for a DBA?

The answer depends on your local jurisdiction requirements. This means you need to check with your state, county, and municipality to see what their DBA filing requirements are. Often, you’ll need to go to your local county or court clerk, where your online business is located, to file a DBA. Many state or local government websites will list out the specific requirements and steps needed to file a DBA.

Conclusion

You don’t need to file or register a DBA just because you operate an online business. The legal requirement to get a DBA usually applies if you’re running a business using a name that’s different from the business's legal name. But there might be certain situations where registering a DBA for your business is a smart thing, even if it’s not required.

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Do I Need a DBA to Sell on Amazon FBA? https://bizdeparture.com/do-i-need-a-dba-to-sell-on-amazon-fba/ Tue, 01 Nov 2022 14:02:12 +0000 https://bizdeparture.com/?p=294 If you want to sell products online, Amazon.com’s Fulfillment by Amazon (FBA) e-commerce service is a great option. But before using Amazon FBA, you might wonder if you need to file a DBA to take advantage of this service. The short answer is no, you don’t. But there are specific situations where you might be required to register a DBA, or it might be a good idea.

When Do I Need to File a DBA for Amazon FBA?

The main situation where you’ll need to file a DBA for Amazon FBA is if you’re using a business name on Amazon.com that doesn’t match your business’ legal name. So imagine your business’ legal name is “Jones Bridal, LLC.” If the Amazon FBA name you use is “Bridal Creations and Solutions,” then you’ll need to file a DBA for the Amazon FBA name you’re using.

Understand that this filing requirement exists not because of Amazon FBA’s policies. Rather, it’ll be because applicable state and local laws require it. In other words, if you carried out your business under a name that was different from its legal name, you’d most likely need to file a DBA, whether you were using Amazon FBA or not.

Does Amazon FBA Require Having a DBA?

Amazon FBA doesn’t require sellers to have a DBA. If your business’ legal name is “Jones Sports Products, LLC” and that’s the name you use on Amazon FBA, no DBA is necessary. If you’re a sole proprietor and you use your personal name on Amazon FBA, you can continue using your name to sell products with Amazon FBA without filing a DBA.

Even though Amazon FBA doesn’t require you to have a DBA, you might still want to get one. A DBA makes it possible to open a business bank account and can add a bit of professionalism to your online business presence.

Do I Need a Business License to Sell on Amazon?

No, you don’t, as Amazon FBA doesn’t require sellers to have a business license. That being said, depending on what you sell and where you’re based, there could be a state or local law that requires you to have a business license, even if Amazon doesn’t. For example, if your product is federally regulated, you may need a business license to sell that product. But this requirement exists whether you sell on Amazon, another online platform, or from a brick-and-mortar store.

Another consideration is if you’re required to collect sales tax and forward it to your state’s department of revenue. In this situation, you might be required to obtain a sales tax license or permit. Check with your state’s taxing authority to find out if this applies to you.

Does my Amazon Seller Name Need to Match my Business name?

You can use a name for your Amazon store even if it doesn’t match your business’ official name. But if you do this, you’ll need a DBA. Filing a DBA becomes necessary when the name you use to conduct business is different from your business’ legal name. If you don’t want to file a DBA, then your Amazon seller name needs to match the legal name of your business.

Can a DBA Protect my Amazon FBA Name?

A DBA offers practically no protections when it comes to stopping others from using a business name, such as your Amazon FBA name. If you want to stop other people from using your Amazon FBA name, you’ll want to get a trademark for it. Getting a trademark will stop anyone from using your Amazon FBA name on Amazon.com and almost anywhere else in the country. Another advantage of getting a trademark is that you can make use of Amazon’s Brand Registry.

Conclusion

Selling through Amazon FBA doesn’t require you to get a DBA. But certain scenarios might make it a good idea to file a DBA. These include using a name on Amazon that’s different from your business’ legal name and having a more professional and recognizable brand for your online business.

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Do I Need a DBA to Sell on Etsy? https://bizdeparture.com/do-i-need-a-dba-to-sell-on-etsy/ Tue, 01 Nov 2022 13:56:49 +0000 https://bizdeparture.com/?p=291 Etsy doesn’t require its individual or business customers to file a DBA to use the Etsy site.

However, state or local laws may require Etsy sellers to file a DBA in certain situations. The most common scenario where a DBA is required is when the Etsy Shop name is different from the business’ official, or legal name.

When Do I Need to File a DBA for Etsy?

If you sell physical or digital products on Etsy, you’ll need to file a DBA only if your Etsy Shop name is different from your business’ real name. For instance, let’s say your Etsy Shop name is “Monica’s Jewelry Creations.” And your business’s official name is “Precious Metal Manufacturing, Inc.” Because you’re conducting business using a name that’s different from your business's legal name, you need to file a DBA for your Etsy Shop’s name.

This DBA requirement doesn’t exist because you’re using Etsy. This filing requirement arises because you’re using a business name in the real world that’s different from your business’ real name. One potential caveat to the above information is if you’re selling food or food products on Etsy.

Do I Need a DBA if I Sell Food on Etsy?

Etsy allows sellers to sell food and other edible products on Etsy and doesn’t require sellers to file a DBA to do so. However, Etsy advises sellers that they may need to follow state and local laws concerning the sale of food products. These legal requirements may set out certain requirements concerning who can make the food, how the food can be packaged, and how the food must be prepared.

There’s a chance that a local rule or law that applies to your selling of food may also impose a DBA filing requirement. You’ll need to check with your local laws and business requirements to know for sure.

Do I Need a Business License to Sell on Etsy?

Etsy doesn’t require its sellers to have a business license. But this doesn’t mean you don’t need one, as a state or local law might require you to have a business license or applicable permit. Generally speaking, if you want to sell products on Etsy as a hobby, you won’t need a business license. However, if you want to sell products on Etsy as part of your business, then your state or local laws could require you to have a business license.

One thing to keep in mind is that even if a business license isn’t required, you still have a legal obligation to pay taxes on any income your sales generate. This is true even if you’re using Etsy as a hobby. You may also be legally obligated to collect sales tax for your state on every applicable transaction you complete as a seller.

Does My Etsy Shop Name Need to Match my Business Name?

No, it doesn't, but you might want it to if you want online shoppers to know your Etsy storefront is for the same business as yours. Another consideration is if you have a DBA for your Etsy shop name or not. If you don’t, then your Etsy shop name may need to match your business name. In other words, if you’re carrying out your Etsy business using a name that’s not the same as your business's legal name, then you may need to file a DBA for the Etsy business name.

Can a DBA Protect My Etsy Shop name?

The best way to protect your Etsy Shop name is to trademark it. Getting a DBA for your Etsy Shop name offers no legal protections to your business’ name. Of course, someone else can’t use your Etsy Shop name for their Etsy Shop. But it’s Esty’s policies that are preventing them from doing that, not the fact that you have a DBA for your Etsy Shop.

One thing to remember is that while Etsy prohibits other users from having the exact same name as your Etsy Shop, they do allow minor variations. For example, if your Etsy Shop name is “Main Street Hobby Creations,” someone on Etsy can set up a shop with an almost identical name, such as “Main Street Hobby Creation.” 

Conclusion

Etsy may not require you to file a DBA for your Etsy Shop, but that doesn’t automatically mean you don’t need one. If you’re using a business name on Etsy that’s different from your business's legal name, then you probably need to file and register a DBA. Another thing to keep in mind is that there could be state and local laws that impose other requirements on you as an Etsy seller, especially if you’re selling food or using Etsy as a business and not a hobby.

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Do I Need a DBA to Sell on Shopify? https://bizdeparture.com/do-i-need-a-dba-to-sell-on-shopify/ Tue, 01 Nov 2022 13:52:31 +0000 https://bizdeparture.com/?p=287 The answer to this question depends on how your business operates and what you’re selling. But the basic answer is that no, you don’t need a DBA to use or sell on Shopify. Despite the fact that a DBA may not be required by Shopify, there are circumstances where you may want, or need, to register a DBA when selling on Shopify.

When Do I Need to File a DBA for Shopify?

You’ll want to file a DBA for Shopify in at least three situations. Not all of these situations apply to every seller, but it’s good to be aware of them in case your business operations change.

Your Business Name on Shopify Is Different from Your Official Business Name

Imagine your business’ official name is “Smith Electronics, LLC.” However, you carry out your business operations as “The Retro Video Game Shop” at your brick-and-mortar store and Shopify online store. In this case, you’ll need to file a DBA for “The Retro Video Game Shop.” This is because your official business name is different from your trade name (the business name you actually use). This name-matching requirement exists whether or not you use Shopify.

You Sell Products Regulated by the Government

To understand why this might require you to file a DBA when using Shopify, you should understand why DBAs need to be registered in the first place. This filing or registration requirement exists to protect consumers. Specifically, it’s to protect consumers from sellers who cause harm.

Should the consumer decide to take legal action against the seller, they’ll know who to sue. Or maybe the consumer wants never to buy another product or service from that seller again. If a DBA is registered, it makes it possible for the consumer to know if the “new” company they’re buying from later on is different from the original company that caused them harm. If a company sells something that could affect the health and safety of consumers, there’s a reasonable chance that the company may be required to file a DBA.

Which Products Are Regulated by the Government?

  • Food
  • Beverages
  • Drugs
  • Firearms
  • Alcohol
  • Health and wellness products or services
  • Personal services
  • CBD-based products

You Sell to International Customers

Countries that you sell to (other than your home country) might require international sellers to be registered with a DBA or have a business license. You’ll need to check with each country to know their requirements.

Do I Need a Business License to Sell on Shopify?

It depends. As is the case with a DBA, you generally don’t need a business license to sell on Shopify. Shopify allows individuals and sole proprietors to use their e-commerce and online small business services, whether or not they have a business license. That being said, there are two situations where you might need a business license.

The first situation exists if you want to sell a regulated product or service. Second, there might be a local law or regulation that requires you to have a business license. In other words, even if Shopify doesn’t require a business license, there’s a chance a law requires you to have a business license.

In case you need a DBA to sell something on Shopify, there’s a chance you’ll also need a business license to do so as well.

When Does my Shopify Name Need to Match my Business Name?

Your Shopify name doesn’t have to match your business name. But if it doesn’t, you’ll probably need to file a DBA. Put another way; your Shopify name must match your business’ legal name if you decide not to file a DBA.

Can a DBA Protect My Webshop’s name? 

No, it can’t. Filing a DBA doesn’t convey any legal protections to your business’ name in the sense that it can stop someone else from taking your webshop’s name. If your Shopify storefront is “Acme Cooking Supplies” and you file a DBA for that name, in certain situations, someone else can still take it and use it for their business. If you want to protect your webshop’s name, you should consider trademarking it.

Conclusion

Using Shopify is a convenient way to sell your goods and services online. As long as your carry out your business using your business’ official name to sell non-regulated products and services, you don’t need to file a DBA.  But if you want to conduct business using a name different from your business's legal name, you’ll likely need a DBA. You may also need a DBA if you use Shopify to sell products or services that are regulated by the government.

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Do I Need a DBA for My Website? https://bizdeparture.com/do-i-need-a-dba-for-my-website/ Thu, 20 Oct 2022 12:30:14 +0000 https://bizdeparture.com/?p=282 Needing a DBA for your website depends on how you’re using your website’s domain name.

If you’re only using it as a URL for your company’s website, no DBA filing is required. But if you’re using your website’s domain in other aspects of your business, then you’ll most likely need a DBA for it.

There may also be other situations involving your company’s website address where you’ll want to consider options that don’t involve creating a DBA.

When do I Need to File a DBA for a Website Domain?

You need to file a DBA when you’re using your website domain in other contexts besides just a website URL. For example, let’s say your business is officially registered as Acme Design, LLC. But when you tried registering “acmedesign.com” and other variations, those domain names were already taken. As a result, you ended up establishing your website address as “smithdesignllc.com.”

If the only time you use the name “smithdesignllc.com” or “Smith Design LLC” is with your domain name, you do not have to file a DBA for it. But if you use that name in your marketing materials, social media accounts, advertising and so on, then you would need to register a DBA for your website domain.

When Does my Domain Name Need to Match my Business Name?

It doesn’t. You can create any domain you want, as long as it hasn’t been taken by someone else. Many businesses want their website’s domain to match (or closely match) their business name, but it’s not a requirement. But as mentioned above, it’s okay to have a website domain that doesn’t match your business’ official name, but only if you don’t use the website domain to carry out your business. Once you begin using your online domain address as if it were your business name, you’ll need to register it as a DBA.

An alternative to registering your domain name as a DBA is to change your business’ official name to match your domain name.

If My Business Has Multiple Domains - Do I Need a DBA for Each One?

No, you do not. But if you want to use any of those domains as if they were your business’ official name, you need a DBA for the domain you use to operate your business.

For instance, let’s assume your business’ official name is Mary’s Consulting Solutions, and your business has the following domains:

  • marysconsultingsolutions.com
  • officemanagementtechniques.net
  • consultinghelpers.biz

The first domain can be used however you want, wherever you want, without getting a DBA for it. The second and third domains only need DBAs if you use them to advertise, when communicating with clients, or any other notable aspect of your business’ operations. If a domain is only used as a domain address, a DBA is not required.

Think of a domain as a mailing address. No business is required to register a DBA as “123 Park Ave.” simply because that’s the business’ physical address. 

Can a DBA protect my website’s name?

No, it cannot. The only way to protect a website’s name from others legally taking it is by registering it with a registrar. Simply getting a DBA that’s the same as your website’s URL won’t stop someone else from using the URL if you didn’t properly register it with a domain registrar. Getting a DBA also won’t stop hackers or scammers from trying to steal your domain or take control of it.

Sometimes, others might indirectly try to get your domain name by registering domain names that are very similar to yours. So if your business domain is “readysteadygo.com” other people might try to register, “redysteadygo.com” or “readystedygo.com.”

One way to prevent this is to register your domain name and company name as a trademark with the United States Patent and Trademark Office (USPTO). Doing this may prevent others from utilizing domain names similar to your domain name or identical to your business’ name.

Another option is to preemptively register those alternative domain names so you own and control them before someone else can.

Conclusion

You’re not required to get a DBA for a website domain. But you might need to if your domain name is different from the official name of your business and you’re referring to your business using its domain name. Also, if you already have a domain name and want to protect others from using it, filing a DBA for it won’t help.

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Who Can Be a Registered Agent? https://bizdeparture.com/who-can-be-a-registered-agent/ Thu, 20 Oct 2022 12:27:23 +0000 https://bizdeparture.com/?p=278 A registered agent can be either an entity (such as LLC or corporation) or an individual. In the case of individuals, almost any adult can be a registered agent. As long as they’re at least 18 years old and have a street address in the same state as your company, they can most likely serve as your registered agent.

The more practical question isn’t who can be a registered agent. Rather, it’s why someone should choose one person to be a registered agent over someone else.

General Requirements for Registered Agents

The exact requirements will vary from state to state. That being said, most states will have the following requirements for registered agents:

  • They must be a resident of the same state as your company.
  • They must have a physical mailing street address to receive documents; P.O. boxes are not allowed.
  • The registered agent must be physically present at the registered physical mailing address during normal business hours.
  • If the registered agent is an individual, they must be at least 18 years old.

Can a Registered Agent Be a Member of the LLC?

Yes, but that may not always be practical or wise. From a practical perspective, the member of the LLC who is a registered agent must be physically present at the LLC’s physical address during all business hours. This means if they’re in a meeting, on vacation, or out sick, they can’t accept important documents on behalf of the company while they’re away.

Another potential drawback with using an LLC member as a registered agent is that, most likely, they’ll register their physical address as the same location as the LLC. There’s nothing inherently wrong with this. However, if a law enforcement officer or process server makes a delivery or serves the LLC, it might be in front of customers, clients, and/or business partners. This might create questions about whether the LLC is in financial or legal trouble. 

Can the Owner Be a Registered Agent?

Yes, if you’re the owner of your business, you can be your own registered agent as long as you meet the above-listed requirements. But there are risks and drawbacks to being a registered agent and owner of your business. These mirror the problems with having an LLC member serve as your company’s registered agent.

Keep in mind that even if the owner can be a registered agent, some states such as California, will not allow a business entity to serve as its own registered agent (also known as an agent for service of process).

Can I Use a Mail-Forwarding Company as a Registered Agent?

It depends. In theory, a business that only acts as a mail-forwarding company probably can’t serve as your company’s registered agent. This is because the physical address of the mail forwarding company may not be in the same state as your company. There’s also a possibility that the physical address of the mail forwarding company isn’t the same as the physical address attached to your company’s registered agent.

In practice, you can probably use a mail forwarding company as your registered agent because many mail forwarding companies offer registered agent services to their customers.

Can a Registered Agent Be a P.O. Box?

No, because the majority of states require the registered agent to have a physical street address. Also, recall that part of the registered agent’s duties is to be physically present at the registered address during normal business hours. This allows them to receive delivery of mail or other important documents personally. This would not be possible with a P.O. Box.

Who Should I Hire as a Registered Agent?

When deciding who to have as a registered agent, the first major decision is to decide if you want to use a company, such as a registered agent service, or an individual. And if you choose to use an individual, you’ll need to decide what kind of individual to use. Below is a discussion of common registered agent choices and the pros and cons of each.

Registered Agent Service

Pros

  • They offer privacy in that the address of a registered agent service won’t be a personal or home address and any service of process is made away from the eyes of customers or clients.
  • They are professionals and know the ins and outs of what they must do to carry out their duties as registered agents.
  • They often operate in multiple states, making it easier to have one registered agent serve various jurisdictions. This is especially handy if you want to expand quickly.

Cons

  • They cost money. Although they’re not expensive, they can cost a few hundred dollars a year.
  • The business owner has less control over how and when they manage their paperwork.
  • Creates additional paperwork for a company by hiring an outside entity to handle part of the business’ operations.

Business Accountant

Pros

  • The business probably already has an accountant and this individual is motivated to act in your company’s best interests.
  • Many accountants are in the office during not just normal business hours but early in the mornings and late into some evenings.
  • Could cost less money than hiring a registered agent, at least if your business accountant is also an employee of your company.

Cons

  • Handling registered agent duties may take time and attention away from their primary duties of handling your company’s finances.
  • Most accountants only practice in one or a small handful of states. So if you plan to expand quickly or broadly, an accountant may not be ideal.
  • Because an accountant has other duties, it’s more likely they’ll forget to notify you of an important document that was just delivered.

Lawyer

Pros

  • Could potentially be cheaper than hiring a registered agent service.
  • Many businesses already have an attorney, either in-house or an outside firm, so hiring them as a registered agent doesn’t involve bringing in a total stranger.
  • Lawyers often have experience receiving important legal documents and promptly responding to them.

Cons

  • Lawyers are rarely licensed in more than three states. So they may not be a good choice if you plan on expanding to a state that your lawyer doesn’t practice in.
  • A lawyer acting as a registered agent may charge you the time it takes for them to handle your important mail. This may not be a lot of money, but in most cases, you’ll be overpaying for what you get.
  • Lawyers can get very busy and often spend time outside the office in court, at meetings or attending legal conferences with other attorneys.

Conclusion

The qualifications to become a registered agent are relatively modest. But this doesn’t mean you should hire or appoint just anyone to serve as your company’s registered agent. There are special factors to consider when choosing a registered agent, including maintaining privacy, ensuring availability during business hours and knowing what to do when important documents get delivered. 

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LLC Registered Agent Powers https://bizdeparture.com/llc-registered-agent-powers/ Fri, 14 Oct 2022 12:29:04 +0000 https://bizdeparture.com/?p=272 If you decide to create a limited liability company (LLC) for your business, you’ll notice that one of your requirements is to have a registered agent.

But what are the powers of registered agents, and what do they do? The short answer is that they are individuals or businesses that accept legal and government notices, as well as any other important documents on behalf of your business.

What's the Difference Between a Registered Agent and a Managing Member?

A managing member is someone who owns at least part of the LLC and also helps run the business. In contrast, a registered agent is simply an organization or individual that can receive important documents during normal business hours (9am - 5pm). This means that the managing member of your LLC can usually be your LLC’s registered agent, although that may not always be the case depending on state law.

However, it’s not always practical or wise to have your LLC’s managing member as its registered agent. For one thing, your managing member may not always be available to receive service of process or other important correspondence during the typical workday.

Another potential drawback is that a managing member who is also a registered agent will likely use the LLC’s primary business address as the physical address for registered agent purposes. This means there’s the potential for potentially uncomfortable or awkward situations where a law enforcement officer or process server shows up at your business (and in front of clients and customers) to serve your business with legal papers.

Is the Registered Agent a Member of the LLC?

No, although they could be. A member of the LLC or other LLC employee is often qualified to serve as the LLC’s registered agent, as most states simply require the registered agent to be 18 years of age and older, have a physical address, and be available to receive correspondence and legal papers during normal business hours. But this doesn’t mean a registered agent will have the same powers as an LLC’s member, founder, or owner. Besides being available to receive special documents on behalf of the company, a registered agent generally has no other purpose.

Can a Registered Agent Sign Documents on Behalf of an LLC?

Yes and no. The registered agent can sign documents on behalf of the LLC, but only to the extent they directly relate to receiving documents, like mail or service of process. For example, if your LLC is being served by U.S. Certified Mail, return receipt requested, someone must physically sign a document (usually a green postcard) identifying who they are and that they received a certain piece of mail. A registered agent will need to sign this document to carry out his or her duties as a registered agent.

That being said, the registered agent can’t sign any other documents on behalf of the LLC, like contracts or other legal documents, such as business filings. Suppose your LLC’s registered agent must also have the power to sign documents on behalf of your LLC. In that case, you should consider assigning the appropriate employee, officer, or managing member to be your LLC’s registered agent.

Can a Registered Agent Sign for a Trademark?

No. According to the U.S. Patent and Trademark Office (USPTO), only the attorney representing your LLC in the trademark matter or an appropriate LLC member can sign documents relating to trademarks.

Can I Change Who My Registered Agent Is?

Absolutely. Many LLCs and other required business organizations will hire a registered agent service to act as their registered agents. You are, therefore, free to choose a different registered agent service or individual to act as your LLC’s registered agent whenever you choose. The exact process will depend on where your LLC is located, but will typically entail paying a small fee and completing a few forms for your state’s relevant agency.

Things might get a little bit more complicated in situations where the current registered agent is an employee or owner of the LLC, and the LLC has specific policies or rules in place regarding how to choose a different registered agent. For example, the LLC’s operating agreement contains instructions on how the company should be managed, which can include how changes can be made to the responsibilities and voting powers of its members. But in these situations, it’s the LLC’s operating agreement that’s placing restrictions on changing the registered agent, not state law.

Can a Registered Agent Open a Bank Account on Behalf of the LLC?

Probably not. Remember, all a registered agent can do is accept legal documents, mail, notices, and other important papers for the LLC. They do not have the authority to enter into contracts, legal agreements, or business deals on behalf of the LLC. In cases where registered agents exercise these abilities, they will act as the LLC’s managing member or another authorized individual, not the LLC’s registered agent.

Conclusion

Having a registered agent is an important part of your business if you’re an LLC. Despite this requirement, registered agents have very little power, as they’re only needed to accept service of process in a legal matter and other important papers on behalf of the LLC they represent.

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