Start an Ecommerce Business with a DBA
When you start an Ecommerce business, it’s a good idea to give your online storefront a unique name. Thoughtful and effective branding is essential. However, if you are a sole proprietor (which most Etsy sellers are), your business name is your legal name, by default. If you want to use a self-chosen business name, but you’re not ready to go through the steps of forming an LLC, you might want to file a DBA (“Doing Business As”) instead.
Example: Candles by Mary
Mary’s friends and family always look forward to the homemade candles that she sends every Christmas. This year, she decided to finally start selling these candles on Etsy. She doesn’t know if her product will “take off” yet, so she doesn’t want to form an LLC until she feels ready. However, she knows what she wants to call her Etsy store: “Candles by Mary.”
The problem is, her legal name is also her official business name, by default. So, if she wishes to sell on Etsy as “Candles by Mary”, she can file a DBA. (A DBA is also known as an assumed name, a fictitious name, or a fictitious business name.)
Forming an LLC is easier than you may think, and it provides a number of benefits. However, if you are not yet ready to take this step, filing a DBA will allow you to operate under a chosen business name in the meantime. If you are a sole proprietor who wants to do business under an assumed name, but you don’t want to form an LLC yet, a DBA might be a good option for you.
Have a Plan in Place When You Start an Ecommerce Business
It is important to have a plan in place when you start an Ecommerce business. In 2022, the average Ecommerce bounce rate was 43%. A high bounce rate means that your site did not keep potential customers engaged enough. Additionally, sites like Google will often penalize websites with high bounce rates. Your storefront is the face you show your potential customers, and every detail matters, especially your business name. It can be very complicated to file a DBA by yourself, because every state has different requirements. We can help with that.
Law 4 Small Business (L4SB). A little law now can save a lot later. A Slingshot company.
Author: Charles Ellis
Charles is the Product Developer for Law 4 Small Business. With a background in Special Education and freelance content creation, he focuses on the user experience aspect of web design.
