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DBA in Mississippi
If you are looking forward to launching a startup in Mississippi, you must be aware of the process of obtaining a DBA or Doing Business As. In Mississippi, DBA registration has its own standards and requirements that differ from most states in the USA. In this article, let’s explore the steps on how to register a DBA as well as the costs associated with them.
Definition
What Is DBA?
To operate your business under a name you want other than the name it has been legally registered, you may use Doing Business As (DBA) or also known as a fictitious business name. In Mississippi, it is not necessary to register your business under a DBA but it is strongly advised due to the benefits it provides such as personal asset protection and boosted credibility. A DBA Registration Form must be filled out in order to register your business as a DBA in Mississippi.
Advantages
What Are The Advantages Of DBA In Mississippi?
DBA registration has both advantages and disadvantages, especially in states like Mississippi that thrive on local businesses. Here are a few of the benefits of registering under a DBA that should be highlighted:
Flexibility and branding
By registering under a DBA, you can not only choose or create a unique and intriguing company name, but you can also align your brand with the vibrant business landscape of the state. A compelling and distinctive DBA name can help your business stand out in a competitive market and attract customers.
Moreover, it allows your company to adapt marketing and business strategies to capitalize on the opportunities presented by Mississippi’s diverse industries, such as in manufacturing, agriculture, and the entrepreneurial ecosystem. This ultimately leads to a broader product offering and increased market presence.
Cost-effectiveness
In Mississippi, registering for a DBA generally costs less than forming a distinct legal company. It has far lower filing costs, starting at just $25. Moreover, annual reports and compliance reports are not generally necessary. This enables firms to hugely cut off their operating costs due to no added tax, franchise fees, yearly reports, and such.
Easier banking and transactions
DBA-registered businesses may open bank accounts and accept deposits through their chosen business name, which helps their financial activities dramatically. Aside from registering to a DBA, in Mississippi, business owners can also file for an Employer Identification Number (EIN), which can grant you additional financial services.
With an EIN, you can open business bank accounts, build business credit, apply for loans and lines of credit, and foster more efficient business transactions. This identification number is an essential financial tool that upgrades the reputation and resources of your business in Mississippi.
Disadvantages
What Are The Disadvantages Of A DBA in Mississippi?
As with any business decision, it’s important to weigh the pros and cons of each side. Here is a list of the disadvantages associated with registering your name or your company as a DBA in Mississippi:
Name availability
There is a likelihood that you may experience problems registering a DBA name due to the availability of those names. Another company may also already be using the same name that you are thinking of right now. Plus, you may not even be aware of it. Fortunately, you can do a comprehensive search of the Mississippi Secretary of State’s database to determine if the name you are interested in is available for registration.
Limited scope
As a result of DBA registration, there are certain limitations on what type of business can be conducted. A few industries are prohibited from using DBAs or may have additional regulations or constraints in place. Business owners are generally prohibited from issuing stocks and executing certain contracts to protect their investments.
Limited legal protection
Compared to a distinct legal entity such as a Limited Liability Company (LLC) in Mississippi, a DBA is typically less secure due to limited legal protection. Business owners are subjected to personal liability in a DBA, putting their personal assets at risk in legal disputes or financial obligations.
DBA Formation
How To Get A DBA in Mississippi
When registering your business or startup under the DBA name, you will need to take several steps to make it a successful venture:
Make your DBA name unique
To learn more about the availability and filing procedure of your chosen name, visit the Secretary of State’s website. To prevent further legal problems, make sure your chosen name does not infringe on an already existing trademark of a company.
Name Availability Search
Go to your local courthouse and fill out a Name Availability Search Form to confirm that the DBA name you’re considering is available for use.
Registration
Either online or at the courthouse closest to you, fill out the necessary forms to register. It may include your name, address, phone number, and the type of entity you want to register. This pertains to sole proprietorship, partnership, or corporation.
Depending on the nature of your business, registering as a DBA may either be done with the Secretary of State or state agencies, such as the Bureau of Corporations, charitable organizations, or the Department of Financial Institutions.
DBA Publishing
Depending on the nature of your business, publishing your DBA registration may be necessary in Mississippi. Publish your DBA registration notice in a nearby newspaper.
Depending on the type of business, filing fees may also vary. But it generally ranges from $50 to $100. DBA registration is typically renewed every five years, this also depends on the kind of business you are running.
Costs
How Much is a DBA in Mississippi?
With DBAs being a crucial part of business registration in Mississippi, their price is determined by local laws and filing fees. In general, you will usually only need to pay for the filing fees as well as added costs like publication and renewal fees.
The price varies depending on your county, but it typically costs anywhere between $50 to $100. The publication cost that may be required as well with the registration could also cost $50 to $100 for a local newspaper to publish your DBA registration details.
Lastly, the renewal costs to active registration costs for DBA range from $25 to $75, still depending on the county.
Registering a business under DBA in Mississippi gives you various advantages when starting a business. However, it is equally essential to consider its drawbacks when doing so.
Getting a DBA is not so difficult. First, you must pick a suitable business name. Next, submit the necessary paperwork to register with the Mississippi Secretary of State or a relevant county office. Lastly, you must pay the associated fees. Additionally, you must remember to have your DBA registrations renewed annually to stay actively registered.
As a business owner, understanding the DBA registration process and requirements can help you make the best decision for your company. Knowing this information can help you stay aligned with your business goals and comply with Mississippi laws and regulations.
FAQ
Frequently Asked Questions About A DBA
Here are the most commonly asked questions about forming a DBA:
Yes, you can use your personal name as your DBA. Registering under a DBA allows you to conduct business under a chosen name — even your personal name — while maintaining the flexibility and branding advantages of having a fictitious name.
In Mississippi, registrations for DBAs typically expire five years after filing. It is, however, vital to check now and then for the most recent information. Always remember to renew and keep your registration active by complying with the renewal requirements.
Yes, you can change or cancel your DBA registration in Mississippi. This requires another process and should be done by the proper authority. Check with the Mississippi Secretary of State for the process of such action.