Although filing for a DBA is similar nationwide, there are specific rules to follow when getting a Connecticut DBA. Read on to learn more.
Whether you’re making your first steps in the Connecticut business world or expanding an existing enterprise, understanding the concept of a fictitious business name is a must. Also known as a trade name or doing business as (DBA), it allows you to sell your products or services under a name different from your entity name.
Here’s a detailed guide to Connecticut DBA requirements.
DBA in Connecticut: Key Takeaways
Connecticut doesn’t require you to get a DBA, but registering a trade name has numerous benefits.
You file for a DBA with your county’s clerk, not the Secretary of State.
A DBA doesn’t change your tax status or business type.
What Is a DBA?
A Connecticut DBA name is assumed name of your company that differs from your personal name or business entity's name.[1] Business owners who register a DBA do so for several reasons.
For instance, let’s say you’ve started a postcard manufacturing company. If you haven’t registered the enterprise with the state of Connecticut, you’ll be considered a sole proprietorship. More importantly, your organization will be named after your personal name, making it hard for your customers to associate you with certain products.
To remedy this, you file for a DBA (e.g., John’s Postcards or John’s First-Class Postcards). It enables you to operate under a more marketable name with your target audience.
Keep in mind that a DBA isn’t a business structure. A DBA doesn’t dictate how you run your company, but your structure does. Whether you have a DBA or not doesn’t do anything to your taxation or management.[2]
How to File a DBA in Connecticut
Now that you have a basic idea of a DBA, let’s see how you can file for your trade name in Connecticut.
Step 1 — Do a DBA Name Search
The first item on your checklist is to see if the desired assumed name is available. Our business name search tool will tell you if someone else has already taken the name. Once you type in the desired name, industry, and email, it only takes the engine up to an hour to send the results to your email.
Namely, a DBA doesn’t automatically provide trademark protection. Two or more businesses can use the same DBA in the same state unless the original owner has trademarked it. A search tool lets you avoid this by encouraging you to use a different trade name.
Step 2 — File a Fictitious Business Name Statement With the County Clerk’s Office
The next step is to submit the necessary DBA paperwork to the county clerk’s office. An umbrella term for the forms required for DBA registration is a fictitious business name statement, and it varies by county. To familiarize yourself with your requirements, head to the Connecticut Town Clerks Association Directory. Although most are similar, some areas have slightly different requirements and different forms altogether.
Most applications are relatively simple and contain the following information:
Official name of your business
Principal place of business
Addresses of the owner(s) if you’re a partnership or sole proprietorship
Mailing address
Signature of every party who can sign official documents on behalf of your small business
After collecting all the information, have a notary certify your form. The county clerk only accepts certified copies.
You must pay a state filing fee whether you submit your paperwork in person or by mail. According to Connecticut General Statutes, the fee stands at $10. Some counties may charge extra fees. If you’re in Hartford, for example, submitting notarized forms costs $13, while handing in and notarizing your document with the town hall clerk is $18.[3]
The state of Connecticut doesn’t require you to publish your DBA formally. Instead, you can start using the DBA once you receive the green light. Here are a few suggestions:
Making and receiving payments under the DBA
Posting your DBA on your website or social media
Using your DBA on brochures, flyers, business cards, and other promotional materials
Advertising your company under the DBA on billboards or newspaper commercials
Branding the DBA on t-shirts, furniture, or other merchandise, depending on the nature of your business
Opening a business bank account with the DBA
Step 3 — Follow Up
The traditional follow-up procedure of filing a DBA is to renew your trade name every 5-10 years, depending on the state and county. However, there’s no need to renew your assumed name in Connecticut. When you register a DBA with your county clerk’s office, it remains active for as long as you use it.
Don’t forget to trademark your DBA with your state. It will prevent other enterprises from using the same name without legal consequences.[4]
Connecticut DBA Name Restrictions
The county clerk may refuse to register your trade name if it doesn’t abide by the following requirements:
Doesn’t contain the name of a municipality that suggests your entity is located in a different area from its actual municipality[5]
Doesn’t use a business structure identifier that doesn’t match the actual structure
Doesn’t use terms that may make others misidentify your enterprise as a financial organization, such as “bank”
DBA Connecticut Tax Considerations
We’ve mentioned how a DBA doesn’t alter your tax status. Still, this doesn’t mean a DBA is entirely irrelevant tax-wise, especially if you’re an LLC. Some Connecticut areas have several rules regarding your business structure and DBAs:
If you want to operate under a DBA different from the name on your LLC tax returns, you’ll need to receive approval from your county clerk.
There’s no need to register a trade name if you’re already operating under a certain entity name. For instance, if you’re providing landscaping services as “Turf Landscaping LLC,” adding a DBA won’t change your pass-through taxation status.[6]
If you have an umbrella LLC that branches out in multiple DBAs, you don’t have to apply for a separate tax ID or employer identification number (EIN) for each DBA. You only need one EIN because the IRS considers you one organization for tax purposes.
Why Should You Get a DBA?
The DBA filing process may be time-consuming, but is it worth it? The answer is yes, particularly if you want to achieve specific goals with your trade name:
Open a business bank account: Without a DBA, many banks won’t even consider your application.
Own multiple businesses without creating all of them from scratch: A DBA enables you to provide different products or services without setting up a separate company for each product or service.
Market your offerings more appropriately: If your personal name or entity name isn’t related to the products or services you wish to sell, a DBA solves this problem. You can choose any name as long as it’s available and isn’t trademarked.
Elevate privacy: If you’re a sole proprietor, your entity name and personal name are most likely the same. A DBA allows you to operate under a different name, providing much-needed anonymity.
FAQs
What’s the difference between an LLC and a DBA?
An LLC is a business structure, while a DBA is merely another name for your company. You use it to create a different product or service line without starting a new business.
How much does getting a DBA cost?
Most county clerks in Connecticut charge $10 for getting a DBA.
Do I need a DBA for my Connecticut business?
No, Connecticut does not require businesses to register a DBA.
What’s the difference between a trade name, assumed name, and a DBA name?
The terms trade name, assumed name, and DBA name are the same. They’re three different terms for the same concept.
How long does a DBA last?
In Connecticut, your DBA lasts for as long as you use it. There isn’t an expiry date, so you don’t need to renew your trade name.
Is there a limit to the number of DBA names I can have?
No. There isn’t a limit to the number of DBA names you can have.
Is a DBA the same as a trademark?
A DBA isn’t the same as a trademark. On the one hand, a trademark offers legal protection for your enterprise through a word, phrase, or symbol that distinguishes your business from other companies. On the other hand, a DBA is merely another name for the organization under which you operate.
Does a DBA affect my business’s tax status?
No. A DBA doesn’t affect your business tax status. If you’re an LLC, you’ll still be taxed as an LLC after your Connecticut trade name registration.
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Bibliography
U.S. SBA. “Choose your business name.” Accessed October 9, 2023.
IRS. “Limited liability company (LLC).” Accessed October 9, 2023.
2018 Connecticut General Statutes Title 7. “Chapter 92 — Town Clerks.” Accessed October 9, 2023.
USPTO. “How trademarks and trade names differ.” Accessed October 9, 2023.
2018 Connecticut General Statutes Title 35. “Chapter 620 — Trade Names.” Accessed October 9, 2023.
Cornell Law School. “Pass-through taxation.” Accessed October 9, 2023.
