What is a DBA and its Benefits in Arizona?
Registering a DBA, known in Arizona as a trade name, establishes your business’s branding. We’ll show you how to register an Arizona DBA. Registering an Arizona trade name is easy! Your Arizona trade name must be unique and meet Arizona’s business name requirements.
In Arizona, businesses are not required by the state to register a DBA. However, several reasons may make a business consider registering their name, such as operation branding, what customers know you by, and use on most documents.
Filing for a DBA in Arizona is less complicated than setting up a corporation or limited liability company (LLC). It does not require the filing of articles of incorporation, and there are no yearly franchise taxes to pay.
How to Register a Trade Name in Arizona
The first step in filing a DBA in Arizona is checking the Arizona Secretary of State Business Entity database for the availability of the fictitious name you want to use for your business. Once you’ve cleared the name, you can move on to registration.
Filing Process:
- Conduct a trade name search in Arizona.
- Create an Arizona DBA through an online Trade Name Application and pay a $10 registration fee.
Trade name registrations in Arizona are valid for a period of five years. They must be renewed online, with the renewal price being ten dollars. LegalZoom can also help you register a DBA in three easy steps, and even offer business formation services.
Cost and Renewal of DBA in Arizona
Filing for a DBA in Arizona costs $10. Expedited filing is available for an additional fee of $35. DBAs must also be renewed every five years for another $10. A DBA allows unincorporated businesses like sole proprietors or partnerships to use a business name that doesn’t include the owners’ names, and can also be used by an LLC or Corporation for branding.
DBA vs LLC: Key Differences
What is the difference between a DBA and an LLC in Arizona? An LLC is a business entity offering personal asset protection from business liability, while a DBA is a registered nickname for your business.
Reasons to choose a DBA over an LLC:
- For formal business structures with multiple brands or lines of business.
- For informal businesses, like sole proprietors and partnerships, for branding purposes.
Under a DBA, there is no personal asset protection as is available with an LLC. An LLC also automatically offers you trademark protection.
To summarize, the main differences between an LLC and a DBA are the legal protection and tax implications provided. An LLC offers limited liability protection and tax advantages, but requires more paperwork and higher filing fees, while a DBA is simpler and more cost-effective but does not provide legal protection or tax advantages.