Filing a DBA in Arizona
What does DBA stand for and how does it differ from an LLC and sole proprietorship?
DBA stands for “doing business as” and is an alternative/fictitious name that allows a business to operate under a name other than its legal name. It’s also known as a trade name or assumed name. For example, The Works – Gilbert is a DBA. Our legal name is The Works East Valley LLC.
Understanding Business Structures: LLC, Sole Proprietorship, and DBA
Starting a business comes with a bunch of important decisions, like picking the right business structure. Whether you’re looking into a DBA (Doing Business As), an LLC (Limited Liability Company), or a sole proprietorship, each one has its perks and fits different business needs. Knowing the differences can help you choose what’s best for your business success.
Here’s a rundown:
-
-
- DBA: This is just a name under which you do business. It doesn’t give you any legal protection but allows for brand flexibility.
- LLC: Offers limited liability protection, which means your personal assets are shielded from business debts. It also has tax flexibility, letting profits and losses pass directly to your personal tax returns.
- Sole Proprietorship: The simplest form of business where the business is the owner. It’s easy to set up but doesn’t protect your personal assets from business liabilities.
-
Filing a DBA in Arizona – To file a DBA in Arizona, here’s what you need to know:
-
- Choose a Name: Your chosen name should not be misleading or imply that your business is something it’s not. Sole proprietorships and partnerships can’t use words like “corporation” or “limited liability.”
- Search for Name Availability: Visit the Arizona Corporation Commission to make sure your desired name isn’t already taken by another business.
- Fill Out the Form: Complete the required form from the Arizona Corporation Commission or your county’s office.
- Pay the Fee: Filing fees typically range from $15 to $100.
- Publish Your DBA in Arizona In some Arizona counties you’ll need to publish your DBA in a newspaper for a certain period. Arizona requires that every corporation and LLC formed in the state to publish a legal notice of its formation. The publication must be made within 60 days after, and only after Arizona Corporation Commission approves the Articles of Incorporation (Organization). The notice must be published in a newspaper of general circulation in the county of the known place of business in Arizona for three consecutive publications.
Once your DBA is filed and approved, you can legally operate under that name, open a bank account, and sign contracts.
LLCs in Arizona
What is an LLC? – An LLC, or Limited Liability Company, is popular because it combines flexibility with protection. Your personal assets (like your car, house, or savings) are safe if your business incurs debt or gets sued. LLCs are great for small to medium-sized businesses.
Who needs an LLC? – If you want liability protection without too much administrative hassle, an LLC might be for you. It’s ideal for businesses that might own property or assets that could become liabilities, like restaurants or rental properties.
To form an LLC in Arizona, you must file Articles of Organization with the ACC – Articles of Organization are legal documents. They are an essential part of the formation process and contain important information about the structure and operation of the company.
What To Include in the Articles of Organization – Articles of Organization typically require specific information about the LLC in Arizona. This includes:
-
- LLC’s Legal Name. This must comply with the state’s naming requirements.
- Physical Address. This does not need to be an Arizona address and can be the same as the statutory agent.
- Statutory Agent. An individual or business responsible for accepting correspondence on your behalf.
- Management Structure. Specify whether the LLC will be member-managed (managed by its owners) or manager-managed (managed by appointed managers).
- Members/Owners Details. The names and addresses of the initial members or owners of the LLC.
Where To Submit the Articles of Organization – The fastest and most convenient way to submit your Articles of Organization is online through the Arizona Corporation Commission Arizona Corporation Commission website. If you cannot file the form online, you can do it by mail or fax.
If you mail or fax the document, make sure to include the following:
-
-
- Cover Sheet
- Articles of Organization
- Member Structure Attachment or Manager Structure Attachment
- Statutory Agent Acceptance
- Payment
-
If filing by mail, payment must be by check. No cash is accepted through the mail. Checks must be payable to “Arizona Corporation Commission.” The completed documents and check can be mailed to:
Arizona Corporation Commission, Examination Section
1300 W. Washington St.
Phoenix, Arizona 85007
If you’re faxing the documents, you will need a Money-On-Deposit (MOD) account to pay the filing fee. You can also fax the paperwork to (602) 542-4100 for regular or expedited service. For same-day service, fax documents to (602) 542-0900.
The Folks at LegalZoom explain how to register a DBA in Arizona
Sole Proprietorships
What is a Sole Proprietorship? – A sole proprietorship is the simplest way to run a business. It’s owned and operated by one person, with no distinction between the business and the owner. You get all the profits but are also on the hook for all liabilities and debts.
Who needs a Sole Proprietorship? – If you’re a self-employed contractor, consultant, or small business owner wanting minimal paperwork and easy taxes, a sole proprietorship is a good start. It’s also great if you’re testing a business idea before committing to a more formal structure.
After creating your LLC and/or DBA in Arizona
- If you aren’t planning to meet clients at your home – consider a Virtual Office at The Works. We’ll manage your mail, you’ll receive notifications with images of your mail when it arrives. Then, when it’s time to meet your clients in a professional setting, you can book one of our meeting rooms. And…….you get a free Day Pass every month.
- Get your business cards. We use MOO and love their products.
- Get your business listed on Google Business.
- When revenue starts coming in, think about using a CPA for you business tax returns. A trusted CPA can advise you of best practices in regard to deductible expenses, how to navigate the taxation landscape for small. businesses, and may even have you file your returns as an S Corp (which is something that we’re not going to cover in this article).
