How to Set Up a DBA in Utah

DBA meaning

The acronym “DBA” stands for “doing business as” and is used to refer to a business operating under a different name from its legally registered name. Different states use a variety of terms to refer to this concept, like “fictitious name,” “assumed name,” or “trade name,” but they all amount to the same concept. 

A DBA is a name that’s used for business operations. It’s what you may see on signage and business cards, what customers will know you by, and what you will use on most documents. But with a DBA in place, your business’s true legal name remains something else, usually the personal name of the owner. 

How to do a name search for a Utah DBA

Do you have a company name in mind? Even if you have the perfect name picked out, you have to see if the name is already in use. If it is, you can’t use it. No two businesses can have the same name in Utah. Here’s what you should know about naming your new business:

The State of Utah keeps a record of all businesses in the state, including DBAs. You need to enter the name you’d like to use into this search tool to see if it’s available. 

Take a look at your search results. Are there any businesses that already exist with the name you want? If so, it’s time to brainstorm new ideas. If you try to complete your DBA registration with a name that’s already in use, the state will reject your application. 

Every business name must be unique. 

If the name you want is available, but you don’t have plans to file the DBA paperwork with the state immediately, you can reserve the name. By filing a name reservation, you can hold a name for 120 days for $22. 

What does “hold” mean? It means no other business can use the name. It’s essentially put on hold until you’re ready to register it. You can renew the reservation after 120 days too. 

You do not need to reserve the name if you plan to register it. Once it’s registered, it’s yours to use so there’s no need to reserve it. 

How to register a DBA in Utah

The state has DBA registration streamlined. All small business owners register their assumed name on the state website. The process does require you to create an account. Here are the steps to follow and links you’ll need to take action:

On the state’s website, you can find the necessary forms to fill out. Start your filing process here.

Through the state’s website, you’ll create an account. With a dedicated login, you’ll be able to submit your application, pay the filing fee, and track your application. You’ll be asked to provide basic information to create your account, like your name and contact information, along with a username and password.

Every kind of business registration comes with a filing fee. In Utah, the fee is $22.

If you have any questions about the process, you can reach out to the Utah Department of Commerce’s Division of Corporations and Commercial Code: (801) 530-4849 or (877) 526-3994.

The state will take three to five business days to approve your application. You can see the progress in your account.

What’s next

Congrats on registering a business name with the state. Now, you’re on to the next steps. You need to think about things like an EIN, paying state taxes, and obtaining the necessary licenses. 

Here’s what to consider as you build your business from the ground up:

The IRS issues EINs, or employer identification numbers. Not every business needs an EIN, but if you plan to hire employees or open a business bank account, you’ll need one. Obtaining the number is easy. You simply visit the IRS website, answer a few questions, and get a number on the spot.

Your next task on the to-do list is to open a business checking and savings account. 

Some business owners assume they don’t need a separate account if their business is only generating a few hundred dollars a year, but that’s not true. Any business, of any size, should keep its income and expenses separate. 

If you make a $40 sale, that money should go directly into the business checking account. If you spend $10 on marketing flyers, it should come out of the business account. 

When tax time arrives, you’ll have a clean ledger of transactions that clearly show income and expenses. 

Not only is it a good business practice, but it will prevent you from sifting through transactions one line at a time. 

Every state, county, and city has its own business license requirements. You need to check with each entity. Start your search on Utah’s Division of Professional Licensing.

To reach customers and promote your business, you’ll need a website. To start, you need to buy a domain name. The domain name should match your DBA name. With a name purchased, you can build your site. Consider using a DIY site builder to get a site up and running quickly. 

You’ll need web hosting too, which is an ongoing cost. A lot of website builders combine all of these services, so you can buy a name, design a site, and set up web hosting all in one place. 

Social media accounts coincide with the website. Consider setting those up at the same time.

As a business, the way you file taxes may change. If you’re a sole prop with a DBA registered with the state, you’ll likely pay income taxes on your business’ profits on your personal tax returns. If your business is registered as an LLC with a DBA on file, that alters your tax process too. Every business is different. You should talk with an accountant about your specific tax situation. 

The state offers tax information on its website, which is a good place for new owners to begin their research. 

Who is a DBA best for? 

Sole proprietorships often use DBA names so they can separate their personal name from the business name to protect personal assets. General partnerships use it for the same reason, and so all partnerships can monitor business dealings. 

Any type of legal business entity can do business under a DBA, and many do it to build a branded image or because they have multiple niche businesses they wish to keep as separate legal entities. The idea is to keep a DBA name from the legal name, which can be a company or personal name. The name of the business is one of the most important things you can do.

Why would entrepreneurs choose to set up a DBA?

There are many reasons to get a DBA instead of an LLC or any other business entity, especially when you are just starting. With that in mind, here are some of the benefits of starting a DBA: