- Get to know the significance of a DBA.
- Understand the procedures of setting up DBA (Doing Business As)
- Be thoroughly aware of the restrictions enforced in Alaska regarding DBA
- Grasp an understanding of the different forms needed while forming DBA
- Get to know the procedures for filing and registering for DBA in Alaska
- Understand the detailed insights on various tax considerations in Alaska while forming a corporation in DBA
- Get information on the filing cost and portals for DBA in Alaska
What is DBA?
While forming a corporation in Alaska, DBA stands for "Doing Business As," the preferred name under which you wish to do business apart from the official or legal name. The company's legal name will always depend on the type of business entity it is structured by (same will be mentioned as Corp or LLC, etc). DBA (Doing Business As) is also often referred to as an "assumed name," "fictitious business name," or "trade name ."There is no limit on the number of DBAs a person can use for their business. However, it is optional to have a DBA in Alaska. Yet, it is one of the best ways for business owners (especially small business owners) to function their business by not using their name. For the type mentioned above, DBAs are essential regarding the ongoing efficacy of applications with efficient databases and access. Along with the above-said information, it is necessary to note that the DBA is filed within 40 days from the commencement date of the business.
Why do you need a DBA?
Alaska DBA offers the privilege to corporations to run the company under a name that is not the company's legal name. As per the laws of Alaska, the company must register for DBA if they set up things to do business under a name previously not mentioned during the documentation procedures. In this way, it gives more leniency to the company to refrain from using their personal names and helps them to use names of their preferred choice, which was not previously available for some reasons. The DBA is accountable for understanding and curating all the databases for the overall smooth working of the company. Below mentioned are a few of the other benefits of having DBA:
Easier banking services
Most of the banks in Alaska have made it mandatory to have a DBA (Doing Business As) name before opening a bank account for the corporate functioning purpose. It helps with easier transactions and further keeps up with your ownership privacy from the customers and other populations.
Improved branding of business
It is undeniable that before any catchy head copies and hero texts, it's the name of your business that drives the maximum attention from your targeted population and the general public. The more catchy your business entity's name is, the more it travels within the population and creates a lasting impact. This, in turn, catalyzes the branding strategy in multiple folds. The concept of DBA (Doing Business As) facilitates both small and large-scale businesses with the provision to name their venture as creatively as possible without worrying about the "LLC and Corp" abbreviations.
More privacy for the business owner
With DBAs, business owners can hide their legal names from the general public and public-facing platforms, giving them an improved privacy shield. However, it is also important to note that a DBA will not provide any protection from legal liabilities and tax considerations.
More privacy in terms of the business structure from the population
The rules and policies of obtaining a DBA from the Secretary of State in Alaska strictly prohibit you from using abbreviations mentioning the business structure of your entity.
For example, terms like LLCs, Corps, and Incorps make it visible to the public the type of business structure followed by the incorporations. Whereas the provision of attaining a DBA further helps in shielding the business structure from the general public.
Helps in maintaining a healthy separation between the owner and the business
DBAs, by nature, are not intended to provide any legal protection or wave off from liabilities, but it effectively helps separate the owners' assets from the business. Apart from that, this healthy separation between the business and personal assets will help gain proper control over the accounts and maintain updated annual reports with foolproof balance sheets and transaction details. This, in turn, will help your incorporation function smoothly with no interrogation from the government body or tax departments.
A great help to small-scale businesses
It is undeniable that the formation of an LLC or corporation is a pretty expensive affair. For small-scale businesses looking to maintain efficient pricing and costing strategies, DBAs are the safest way to create Sole Proprietorship for running their business without forming a separate LLC. This helps the companies avoid hefty charges and maintain the owner's privacy under the provision of DBA.
How to set up a DBA in Alaska
The DBA filer can seek help from Alaska's Corporations Section Database to cross-check the availability of the entity's name. Additionally, to qualify for the name approval status, your preferred name needs to be distinguishable from the currently existing name of the business entity. Below mentioned are the major criteria looked out for a while checking the name availability by keeping distinguishing factors as the benchmark:
- The name should have one or more different words.
- Words can be the same with another entity's name but in a different order.
- Words can be the same, but spellings need to be different (it is recommended to have an extra pinch of creativity in the same)
- Words can be the same but with different meanings (make sure not to make them identical)
DBA name restrictions
Your DBA in Alaska cannot have terms like Corporate, LLC, or any other words that designate and reveal the business entity type. Words like "City," "Village," and "Borough" are also strictly prohibited while registering your business corporation's name for DBA.
Forms needed to file a DBA in Alaska
Official registration of DBA can be done with the help of the Business Name Registration Application. Your DBA documentation has to be filed with Alaska's Secretary of State.
Here are the mandatorily required files while applying for DBA in Alaska:
- Preferred DBA business name
- New Business Name Registration Form
- Business Name Renewal Application
- Your business license number was provided by the Alaska Secretary of State
- The actual structure of the business (sole proprietor, partnership, or entity like an LLC or corporation)
- Purpose of your Business
- Physical and mailing address of your business
- Details of the business owner and mailing address
- Details of the business partners, if any
- Type of business
- Signature of the owner
- Printed copy with name and date
Alaska DBA filing & registration
As a part of DBA filing and registration, a payment fee of $25 has to be made at the Division of Corporations Section of the State of Alaska. Followed by the submission of details, which will include the owner's name, signature, and address, along with the type and nature of the business.
The usual expected time for the entire registration process is 10-15 days, and the yearly time frame for the renewal of DBA is between October 1st and December 31st of that year.
Alaska DBA tax considerations
Since DBA (Doing Business As) is not a separate business structure, it will nowhere affect your business in terms of tax and benefits.
Your tax benefits and considerations remain the same as before (depending on the type of business structure in alignment with the corporate and business laws of Alaska)
How much does a DBA filing cost in Alaska?
Filing procedures in DBA come with a nominal cost that must be paid to the Secretary of States' treasury in Alaska.
Below mentioned are the pricing details as per the various types of business entities:
- Sole proprietors: $25
- Corporations: $25
- LLCs: $25
- Renewal fee after five years: $25.
Filing your corporate DBA starts by choosing a preferred perfect name, then checking the selected name's availability. A DBA filer can seek help from Alaska's Corporations Section Database to cross-check the availability of the entity's name. DBA offers the privilege to corporations to run the company under a name that is not actually the company's legal name. To qualify for the name approval status of your DBA, your preferred name must be distinguishable from the currently existing name of the business entity. Terms like Corporate, LLC, are strictly prohibited in DBA names. DBA documentation is done with the help of the Business Name Registration Application. A nominal fee of $25 is paid to the Secretary of State in Alaska after submitting all the documents. Response from the department is usually received within a time frame of 10-15 days. Having a DBA for your company has numerous benefits. The procedures for attaining DBAs are never tedious when taken one step by carefully following the steps mentioned in this article.
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