Filing a “Doing Business As” (DBA) form in North Carolina allows a business to operate under a name different from its legal name. This process, while straightforward, can sometimes be tricky if not handled properly. Understanding common mistakes and how to avoid them can save time, effort, and potential legal issues. This post highlights critical errors to watch out for when completing the North Carolina DBA form.
Inaccurate Business Name
One of the most common mistakes is providing an inaccurate business name on the North Carolina DBA form. Your chosen business name must be unique and not misleadingly similar to an existing business name registered in the state. Failing to conduct a thorough name search before filing can result in your DBA application being turned down.
To avoid this, use the North Carolina Secretary of State’s online database to check the availability of your desired business name. Ensure that the name adheres to state naming guidelines, which include avoiding prohibited words and ensuring it reflects the nature of your business accurately. Additionally, consider the future branding implications of your business name to ensure long-term suitability and appeal.
Incomplete Application Information
Filling out the North Carolina DBA form requires detailed and accurate information about your business. Commonly overlooked details include business addresses, contact information, and the full legal names of the business owners. Incomplete or incorrect information can lead to delays or rejection of your application.
Double-check all the required fields and ensure that every section of the form is filled out correctly. Take your time to review the form for accuracy before submission, and if you’re unsure about any part, seek clarification or professional assistance. Properly organizing all necessary documents and having them ready in advance can also streamline the application process.
Not Following County-Specific Requirements
Another mistake is not adhering to county-specific requirements when filing the DBA form. In North Carolina, DBA filings are handled at the county level, and different counties may have varying procedures and forms. Some counties may require additional documentation or specific steps, such as notarization of the form or publication of the DBA in a local newspaper.
Understand the requirements of the county where your business is located. Visit your county’s Register of Deeds website or office to get detailed information and ensure compliance with local regulations. Understand these requirements to prevent unnecessary delays and complications in your filing process.
Missing Deadlines and Renewal Dates
Missing important deadlines and renewal dates is a frequent error that can complicate your business operations. In North Carolina, some counties require periodic renewal of your DBA registration. Failing to renew your DBA on time can result in the expiration of your business name registration, requiring you to reapply and possibly pay additional fees.
Keep track of your DBA filing date and any renewal deadlines. Set reminders well in advance to ensure you complete the renewal process timely, maintaining your business’s good standing. Maintaining a calendar of important business compliance dates can help ensure you never miss a critical deadline.
Ignoring Legal and Tax Implications
Lastly, ignoring the legal and tax implications of filing a DBA can be costly. While a DBA allows you to operate under a different name, it does not create a separate legal entity. Your business’s legal and tax obligations remain tied to your original business structure, whether a sole proprietorship, partnership, LLC, or corporation.
Ensure you understand how operating under a DBA impacts your business’s legal responsibilities and tax filings. Consult with a legal or tax professional to avoid misunderstandings or compliance issues. Understanding these implications can help you make informed decisions and avoid legal troubles.
Conclusion
Filling the North Carolina DBA form correctly ensures your business operates smoothly under its chosen name. Avoiding common mistakes such as providing inaccurate information, not adhering to county-specific requirements, missing deadlines, and ignoring legal and tax implications, can help you streamline the process and prevent potential issues.
Taking the time to understand and accurately complete your DBA form can save you from unnecessary headaches and allow you to focus on growing your business. Staying informed and vigilant in these areas ensures that your business remains compliant and operates under its preferred name without any hitches.
