How To File a DBA in Michigan in 5 Steps

A DBA is any name that a business uses that is different from its legal name. A DBA is also called a trade name, an assumed name, or a fictitious name. A DBA is not a legal entity. The underlying legal entity is the organization responsible for the business during the use of the DBA.

It will be your decision whether to use a fictitious name instead of the business owner's name or the legal name of your Michigan business. However, depending on the type of business, there are some situations where a DBA filing is virtually required.

Sole Proprietorship or Partnership

The most common use of a DBA is in a sole proprietorship or a partnership, like a limited liability partnership. Often, the business name used differs from the full legal names of the entrepreneurs who operate the business. This is true even if the name is a part of the business—for example, "Bob's Greenhouse."

If you are a sole proprietor, you can register your full legal name as your business name. For questions about this, contact the Michigan Secretary of State's office.

LLC and Corporation

It is a slightly different process if the existing business is a corporation or limited liability company (LLC). You do not need a new DBA if the corporation or LLC's name is registered. However, a DBA registration is required if the corporation or LLC wants to do business under another name than what is on file. An example would be a holding company operating a restaurant: "XYZ Holdings DBA Mulder's Pencil Emporium."

There are certain words that you cannot use in a Michigan DBA:

• Misleading about the nature of the business
• Connected to banking unless you have a fiduciary license
• Connected to insurance unless you are a registered insurance company
• Refer to your company as a profession, like a doctor or attorney, unless you are one in the state.

After deciding that you want to go through with the DBA filing process, you should make sure your proposed name is available. Do a name search on the internet and social media to make sure no one is using it. Ensure you check domain names, too.

If no other entrepreneur is using your DBA online, now check Michigan's Corporations Division and run a business entity search. If no one else has that business name, trademark, tradename, or DBA, then move forward with owning it.

If you do not want any other entrepreneur to use your DBA business name, then you must own the name. Simply registering your DBA with Michigan is not enough. You must also “own" it by trademarking it within the state of Michigan. That is the only way to prevent another person within the state from registering a company with your DBA name.

Next, trademark your name with the United States Patent and Trademark Office (USPTO) if you expect to work in other states. This process takes time and money, but it allows you to seek attorney's fees and damages if someone else uses your name without permission.

Michigan Department of Licensing and Regulatory Affairs (LARA) registers DBAs.

Registering DBAs for Michigan Sole Proprietorships and Co-Partnerships

Sole proprietorships and general partnerships in Michigan need registration at the county level in each county where the DBA does business. Every County Clerk's office has a form for doing this. It is the “Certificate of Persons Conducting Business Under an Assumed Name."

The DBA form asks for basic information:

• Your DBA name
• Owner address
• Owner name
• Where the business organized (county and state)

Do not take this step until you have verified that your DBA name is available, taking the steps outlined above. The DBA form requires you to state (verify) that you have done that search before submitting your paperwork.

Remember, a form must be filled out, notarized, and filed in each county where the DBA is doing business.

Common County Clerk Contact Information

After the form is filled out, it must be notarized and physically filed at the County Clerk's office.

• Ingham County (located in Lansing, Michigan)
• Oakland County
• Wayne County

The filing fee varies from county to county but is generally $20. There may also be a notary charge.

Registering DBAs of Michigan Corporations, Limited Partnerships, and LLCs

Corporations, LLCs, and limited partnerships (LLPs) register their DBAs at the state level through the LARA website. There is an associated state fee to file. The DBA form is a "Certificate of Assumed Name" form.

After registration of your DBA, make sure to add the assumed name to insurance licenses. You may also have to register with different Michigan state agencies.

Adding an Assumed Name to an Insurance License

An individual insurance licensee with a DBA must submit an "FIS Individual Insurance Licensee Registration" form. If you cease using your name, you must file a "Termination of Assumed Name" form.

A business entity (agency) licensee must register an assumed name on the Michigan DIFS insurance licensing website.

DBAs and Tax Identification

A sole proprietorship DBA can use the owner's Social Security Number (SSN) for taxes. It does not require an employee identification number (EIN). Any other type of company should have, use, or obtain a business EIN.

The fictitious company name you created does not have to obtain a federal EIN. The underlying legal entity is responsible for:

• All taxes for the DBA
• Employment taxes
• Unemployment insurance
• Business Insurance
• Local and state business permits

If the underlying legal entity does not have tax identification numbers, then get a federal EIN from the Internal Revenue Service (IRS).

You need to file a business registration with the State of Michigan to pay taxes on any business sales. You must register with the Michigan Department of Treasury and Unemployment Insurance Agency if you have employees.