Starting a business means making many decisions and learning a lot of new things. If you’re a sole proprietor or own a partnership, corporation, or LLC in Missouri, you can benefit from a DBA (“doing business as”). In some states it’s referred to as a “fictitious name” or “assumed business name”.
Once registered and legally recognized by the Missouri Secretary of State’s office, the moniker allows sole proprietors to gain a level of separation between themselves and their professional endeavors. A corporation or LLC can leverage a DBA to define a new product or service. With few negatives and considerable benefits, a DBA in Missouri might be the right thing for your business. This post should help you understand if it’s worth it for you and learn about the process of getting a DBA in Missouri.
The strategic planning surrounding the use of DBAs may seem a little murky to those who recently opened an LLC in Missouri. After all, you or a third-party business filing platform already negotiated The Show-Me State’s bureaucracy at least once. Why revisit filling out another round of legal documents, uploading them, and paying a modest fee when you already have a business entity name? The reason is that a DBA serves as a secondary name that public-facing organizations can use to brand, market, and connect with customers and clients.
It can be particularly helpful to secure a DBA that reflects consumer trends or better meshes with a new product line or service area. For instance, if your organization’s original name was “Joe’s Towing Service,” and now you own and operate an auto repair facility, it may make sense to switch to a fictitious name such as “Joe’s Towing & Automotive Repairs.” By doing so, you can avoid the time and effort of changing your entire business entity to adopt a more suitable name. It’s important to keep in mind that an assumed business name applies to every legal business structure in Missouri.
The benefits of registering and employing a fictitious name in Missouri are tied to each individual company’s goals. The DBA that an owner or operator registers is typically part of the business’s strategic planning. Although the process of securing an assumed business name in Missouri can be time consuming, these rank among the prominent reasons professionals either invest the time and energy or enlist the support of a business filing platform.
The single greatest disadvantage of operating under a fictitious name without a legally recognized business is the inherent lack of asset protection owners suffer. When go-getters use a DBA instead of forming an LLC or other entity, they are open to civil litigation. In some instances, the contracts they sign as a DBA may not be entirely enforceable. These are other disadvantages of a DBA Missouri business operators would be well served to consider.
Business leaders are sometimes taken by surprise to learn that operating a DBA in Missouri without appropriate registration is a misdemeanor crime. You can actually get prosecuted for this offense. If you open the venture under a DBA, you only have five days to complete a filing with the Missouri Secretary of State.
Not every industry leader is intimately familiar with the tax code. It’s not unusual to believe that adding a DBA will also increase your tax liability. Truth be told, an assumed business does not increase your tax position or add complexity to state and federal filings. The only financial difference might entail adding the DBA on letterhead, checks, and marketing materials.
When preparing to file for a DBA in Missouri, it’s important to understand that the overwhelming majority of states have long-standing naming restrictions. Some are unique to the state, while others are largely standardized. For example, obscenities or trying to mimic another entity by adding labels such as “LLC,” “Corp,” or “Inc” are unlikely to pass muster. A fictitious name that has been federally trademarked will also likely be rejected.
In order to gain approval from the Missouri Secretary of State’s office, a DBA must follow strict rules. These include making the fictitious name clear and distinguishable from other enterprises. It can in no way imply, suggest, or mirror the title of a government agency. The filer must also avoid the appearance that it is a financial institution. Using the words “Bank,” “Trust,” or “Savings” are generally off-limits.
Before you open a laptop and pull up the Missouri Secretary of State website, it’s prudent to have already composed a list of fictitious names. You will quickly learn that many of the popular options have already been taken. That being said, with a little effort and creativity, there are plenty of available DBAs that can further your business interests.
The steps involved in registering a DBA in Missouri are not overly complicated. By following the appropriate steps, you or a designated party can acquire an assumed business name that helps your operation drive profits and achieve goals.
Conduct a search for the fictitious name on the Secretary of State’s website. Start at the Business Registration Online Portal, click on Search by Name and proceed to enter options from your list. If nothing comes up in the search, your DBA is available.
Create an account on the Business Registration Online Portal. Once you have been approved, you can take the next steps.
Fill out the Registration of Fictitious Name form. The document requires your LLC or corporate charter number, fictitious name, business address and ownership information.
Missouri offers a snail mail filing and digital option. To mail in the form and the $7 filing fee to:
Missouri Secretary of State
Corporations Division
PO Box 778
Jefferson City, MO 65102
The U.S. mail and online filing costs are the same, and approvals take 5-10 business days to process either way.
Registering a DBA in Missouri opens up a significant number of opportunities for newly minted ventures as well as established organizations. You can leverage an assumed business name to bring foods and services into the marketplace under an eye-catching label. It’s also possible to use the title to highlight a branch of your growing LLC. For all intents and purposes, a DBA in Missouri is a positive vehicle that can be used to increase profitability and achieve goals.
If you are considering registering a DBA but don’t have the time to invest right now, there are third party business platforms that specialize in forming LLCs and securing DBAs. These professional firms streamline the process while avoiding mistakes that may cause delays.
The short answer is: No. Sole proprietors and partnerships do not necessarily have to have a DBA to operate in Missouri. Forming an LLC and filing a DBA is generally a good idea. A legally recognized business entity affords personal asset protection. The DBA helps brand the venture as credible and professional.
Missouri DBAs have an expiration date. You are required to renew the fictitious name six months before it times out. You can use the same form, and the cost is $7.
The state does not have a limit on the number of fictitious names you can register. Each registration must be made and renewed separately. They must also have a different brand identity.
You can change your fictitious name at any time in Missouri by filing an amendment with the Secretary of State’s office. You can also cancel a fictitious name and replace it with a new filing.
This portion of our website is for informational purposes only. Tailor Brands is not a law firm, and none of the information on this website constitutes or is intended to convey legal advice. All statements, opinions, recommendations, and conclusions are solely the expression of the author and provided on an as-is basis. Accordingly, Tailor Brands is not responsible for the information and/or its accuracy or completeness. It also does not indicate any affiliation between Tailor Brands and any other brands, services or logos.
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