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There are many reasons to set up a DBA in the state of Michigan. Perhaps you’re an author wanting to operate strictly using your pen name. Alternatively, you have a small business and would prefer using a DBA to registering a second LLC. In any case, getting your DBA is a straightforward process. That said, it might be a little confusing for first-time applicants. Don’t fret: We did the research for you to create this simple guide on filing your DBA in Michigan.
What Is a DBA?
A DBA, short for “doing business as,” refers to an assumed name or alias under which you choose to do business. Sometimes DBAs get referred to as trade names or fictitious names. Within Michigan, the Department of Licensing and Regulatory Affairs, or LARA, usually oversees DBA filing and registration. Even so, you’ll want to familiarize yourself with county paperwork and filing fees for the location(s) your company will operate.
Who should get a DBA?
Before applying for a DBA in Michigan, you might wonder if it’s the best option for your business needs. Perhaps an LLC might be a more efficient option? Well, it generally depends.
Do you want to:
- Do business using an identity other than your legal name?
- Open a bank account using your alias?
- Operate an LLC under a different name without creating a new organization?
If you answered “Yes” to any of the above, you should strongly consider registering a new DBA.
With that said, if you want to:
- Provide liability shielding for your business in the event of a lawsuit
- Successfully separate your private and business assets
- Take advantage of S corp. or C corp. taxation
Then you might want to consider registering as an LLC or corporation.
Michigan DBA Costs
Below you’ll find the series of steps necessary to register a Michigan fictitious name. If there’s anything you’re not sure about, always check with state sources. DBA filing fees tend to range between $10 to $16, depending on the county. To find out the correct fee amount, contact the County Clerk in the location where you intend to file. Go here for a list of county addresses.
You may also be required to obtain certain licenses or permits, depending on your business type. Be sure to also visit the U.S. Small Business Administration (SBA) website for details on what industries are regulated at the federal level, as well as their current fees.
Setting Up Your DBA in Michigan
Below you’ll find the series of steps necessary to register a Michigan fictitious name. If there’s anything you’re not sure about, always check with state sources.
Select a Name
First, decide on an alias. You’ll want to aim for a unique trade name that wouldn’t be confused easily with an existing company. You can perform a Michigan business name search by visiting the official website. It’s an often necessary step to avoid having your DBA rejected because it’s already being used by another business.
Submit Your Forms and Payment
The form completion and submission processes will vary depending on the type of business entity applying for the DBA.
Sole proprietor or co-partnership: Individual business owners or those with a general partnership should file a Certificate of Persons Conducting Business Under Assumed Name in every county where the brand will do business. Information to include on the form:
- The name under which the sole proprietorship or partnership will do business
- Name and business address of the individual or partnership (can be a residence)
- Nature of the business entity
- State or county where the company first organized
- For co-partnerships, detail the nature of the relationship
LLCs, LLPs, and corporations: These businesses must register their DBAs on the state level with LARA. They have the option of completing the process online or downloading and submitting a Certificate of Assumed Name PDF form. Corporations and LLPs pay a $10 filing fee. Meanwhile, LLCs get charged $25.
It’s possible to expedite the process, but expect to pay extra fees. If you want your registration completed within an hour, for instance, be prepared to pay $1,000. If you don’t mind waiting a day, the 24-hour expedition fee is a comparatively milder $200.
To submit your documents in person, you can visit the following facility:
2407 N. Grand River Ave.
Lansing, MI 48906
Telephone: (517) 241-6470
Otherwise, mail your forms and payment to the following address:
Michigan Department of Licensing and Regulatory Affairs
Corporations, Securities & Commercial Licensing Bureau
Corporations Division
P.O. Box 30054
Lansing, MI 48909
Adding an Assumed Name to an Insurance License: In this situation, send a completed Individual Insurance Licensee Registration or Cancellation of DBA form to the Department of Insurance and Financial Services (DIFS).
What Comes Next for Your Michigan DBA
Like many states, a Michigan DBA registration doesn’t last forever. After you successfully file, it’s good for a period of up to five years. After that, you can keep your trade name by using the same registration process and paying the applicable fees. It’s generally a good idea to check for any changes in fee amounts or forms. That way, you can avoid any confusion and continue to get the most out of your Michigan DBA.
Forbes Advisor legal expert Jane Haskins, J.D. contributed to this article.