The Proper Way to File an Iowa DBA
Being a business owner in Iowa? Do you want to manage it using a prospective name? You have an excellent opportunity to acquire a business and to conduct activities of a sole proprietor under the (DBA) name.
The process of obtaining a DBA for any official business is simple, but it requires considering several nuances. In addition, owners should be aware of the rules for using the new name registered. So, we have prepared a step-by-step guide to use the DBAs in the state under the question.
It is essential: the sole proprietor must understand that he will not receive limited liability protection, as is the case with an LLC. There are no restrictions on the number of DBAs in an LLC. You won’t experience any difficulties while doing it yourself. However, the greater the number of additional names, the more difficult it is to keep accounting correctly. Therefore, hiring an LLC website is the very best idea!
Iowa DBA Application Process
A DBA or a fictitious name for a business in Iowa is easy and quick to get. The first step is to check whether the name you want to use is free to use or it’s already busy. For this, access the official website of the Secretary of Iowa State and perform a business entity search. Once checked and found vacant, complete the Fictitious Name Resolution. The latter will require to provide such data as:
- The business owner’s name;
- The name of the business;
- The business essence;
- The new DBA you want to use;
- The date when the new DBA must take effect;
- The business owner’s signature.
As in most states, there is a fixed fee for DBA registration. In Iowa, it’s only $5. Attach a check with the mentioned amount of money payable to the Secretary of State’s office. Use the following address:
Secretary of State Business Services Division Lucas Building, 1st Floor Des Moines, Iowa 50319
Before you hurry to act, mind that the mentioned form is designed for LLCs, while general partnerships and sole-proprietorships must abide by the local laws. As a rule, the filing processes may differ per county.
Iowa DBA: The Essence
At the initial stage of doing business, entrepreneurs usually use only one type of economic activity. But in the future, there is a need to diversify risks and expand the company.
So, you have to choose: open a new legal entity or apply to DBA? Sole proprietors and general partnerships may use names that differ from the owner’s name.
Limited liability companies and corporations can use several DBAs at once to have the official registered identification of their activities. Why do Iowa companies acquire DBAs? The answer lies on the surface:
- Sole proprietorships and partnerships are a guarantee that your company is conducting official activities. A professional company will attract many more potential clients than a company that has just its name. The company can also obtain a bank account using the DBA. This way, you can separate personal assets and business. It will also be more comfortable for customers, as each sole proprietorship prefers to receive invoices in the company’s name.
- Corporations and LCCs use registered DBAs to use different names within the same trademark. DBA also helps to separate subsidiaries from the parent corporation. For example, this technique is prevalent in the restaurant business. One owner opens several restaurants that are unrelated. Thus, it doesn’t matter what your marketing or accounting goals are! DBAs are advisable in any case, and most importantly, they make doing business very comfortable.
So, DBA in Iowa is the best opportunity for companies to make their image brighter and more recognizable. They can use a variety of tools to express themselves without wasting time on paperwork.
An Iowa DBA Validity Period
According to the state laws of Iowa, every newly registered DBA has a lifespan of two years from the day of filing. So that to use the given name after the expiry date as well, renew the DBA with the Secretary of State’s office. The renewal is effective for an additional two-year time.
Hiring a Professional DBA Filing Service: The Necessity
You do not need to register for a DBA yourself, as there are quite a few companies that provide this service at a professional level. They know all the subtleties. So, you will get a positive result the first time. Of course, their services are not free. They will collect all the documents on their own, and you will only need to provide them with some data. So, it’s up to you to decide what you want: save your time or money.
It is worth noting again that the requirements for obtaining a DBA in Iowa are simple, and many companies fill out the official form online on their own. But if you are still too busy or are afraid to make a mistake, you can turn to LegalZoom, for example. The fees you will have to pay are very fair, and it is worth spending that money!
It makes sense to register a DBA when you need to separate several areas of business. Such a solution will make it possible to assess efficiency better, improve the quality of control over certain types of activities.
Rational use of “Doing business as” to promote a new product on the market – allows you to analyze the consumers’ reaction and not spend money on opening a new legal entity. To file a DBA will not cause additional complications.
Can I get legal protection from the DBA?
– No, you cannot. DBA registration does not provide for the security of business from the point of view of jurisdiction. Personal asset protection is available through a corporation or limited company.
Is there a need for a registered agent when creating a DBA?
– If you acquire the DBA names as a sole proprietor or are a general partnership – you do not need a registered agent. However, companies and limited liability corporations must have a registered agent. The presence of DBA in the latter case does not matter.
Can different companies use the same name?
– A DBA application does not guarantee that your business will have exclusive rights to a fictitious name. The law does not prohibit all interested LLCs or corporations from using your registered name.
Is there a requirement by the State of Iowa to publish the DBA name?
– No, like in most states, there are no DBA publication requirements in the State of Iowa.