Michigan DBA

What is a Michigan DBA (Assumed Name)?

A DBA (“doing business as” name) is like a pseudonym for your business—it allows you to operate your business using a name that isn’t its legal business name. In Michigan, DBAs are called assumed names, and in other states, they’re referred to as trade or fictitious names. Businesses often use DBAs to rebrand, start a new business line, or appear more professional.

What’s unique about DBA registration in Michigan?

• Registration required: According to state law a business cannot legally operate under an assumed name without registering that name. This applies both to unincorporated businesses like sole proprietorships and formal businesses like LLCs and corporations. Not registering can result in fines and other negative legal consequences.
• State- and county-level registration: In Michigan, how you register your assumed name is based on your business type. Informal business structures such as sole proprietorships and general partnerships register in the county where they operate, whereas business entities like LLCs and corporations register with the state’s Department of Licensing and Regulatory Affairs (LARA).

• Sharing assumed name: Two or more business entities can use the same assumed name if those entities are engaged in a partnership or joint venture (MCLA §450.1217(2)). In this case, each entity must file its own Certificate of Assumed Name.

• Insurance company DBA registration: If you are an insurance company or individual insurance agent, you’ll need to add your DBA to your insurance license through the Department of Insurance and Financial Services (DIFS). Individual agents can use the Individual Insurance Licensee Registration or Cancellation of DBA form, while business entities can register online through the DIFS Insurance Licensing Online Services portal.

Michigan DBA Registration

Why Register a DBA in Michigan?

Popular reasons to get a DBA for your business in Michigan include:

You’re a sole proprietor

If you’re a sole proprietor, your legal business name is your own full name. This is because there is no legal separation between you and your business. For many sole proprietors, this situation isn’t ideal. For example, you may want to do business under a more memorable or descriptive name, like “DJ Sasquatch” instead of Devon Roberts. That means you’ll need a DBA, and Michigan state law requires any person conducting business under a name other than their real name to register that name (MCLA §445.1).

To market your business

DBAs are often used for marketing purposes, especially when a business is rebranding or expanding. Using a DBA can make it easier to expand your business because you don’t have to form a whole other business to launch a new product or service. For example, if you own a sandwich shop called Stacked Lunch LLC, you could use a DBA to start operating a food truck called “Stacked Snacks.”

Common ways to use a DBA to market your business include:

• On websites and social media accounts
• On signs, business cards, and other marketing materials
• In commercials and advertisements
• On merchandise

As part of maintaining your business’s professional image, you can also open a business bank account under your DBA. That way, you can make and receive payments under that name.

To do business under your domain name

Some businesses need to register a DBA because they operate under their domain name. For instance, if the domain name StackedLunch.com isn’t available, you might get StackedSammies.com instead. If you start building your brand around StackedSammies.com or simply “Stacked Sammies” instead of Stacked Lunch LLC, you’ll have to register your domain name as a DBA.

Tip: Registering a Michigan assumed name doesn’t guarantee that another business won’t use it in another state. For stronger legal rights to your name, you can apply to trademark your DBA name at the federal level. Here’s how to apply for a trademark.

How to Renew an Assumed Name in Michigan

Regardless of business type, you must renew your assumed name every 5 years.

LLCs, LPs, and corporations:

• • Renew online through the Corporations Online Filing System.
  • Filing costs $10 for LPs and corporations and $25 for LLCs.

Sole proprietorships and general partnerships:

• • Renew through your county clerk’s office. Many offices provide a renewal form or require you to file the same form used to register.
  • Filing a renewal costs the same as filing a registration.

Can I cancel my DBA?

Yes, to cancel your Michigan DBA, you must file paperwork with the agency you registered with and pay a fee.

LLCs, LPs, and corporations:

• • Cancel online through the Corporations Online Filing System or by filing a Certificate of Termination of Assumed Name.
  • The filing fee is $10 for LPs and corporations and $25 for LLCs.

Sole proprietorships and general partnerships:

• • Cancel through your county clerk’s office. Most counties provide a cancellation form, like Oakland County’s Certificate of Discontinuance of Business Under an Assumed Name.
  • The filing fee for cancellation is the same as the fee for registration and renewal.

Filing a DBA vs Starting a Business

While getting a DBA might feel a little like starting a business, filing a DBA doesn’t create a new business or change the structure of your existing business. So, if you’re a sole proprietor before you get a DBA, you’re still a sole proprietor after (but now you can go by a different name).

It’s important to note that because a DBA isn’t a business on its own, you must continue to use your legal business name on government and legal documents. For example, you must file taxes under your legal name. You also need to sign contracts with both your legal and DBA name to ensure that the contracts hold up in court.

So? How do you start a business in Michigan?

• Sell something. You don’t need to do much to establish an unregistered business (sole proprietorship or general partnership). Charge a client for an hour of consulting or sell a vintage t-shirt on Ebay, and you’re in business—it’s that easy. Keep in mind, though, that you may need to get a business license for certain types of work.

• Register your business with the state. In Michigan, formal business entities (LLCs, LPs, and corporations) are formed by registering your business with LARA. You’ll need to submit formation documents and pay a filing fee.

DBA vs LLC in Michigan

A DBA is just a name, but an LLC is a legal business entity. Because of the legal separation between the entity and its owners, a Michigan LLC provides business owners with liability protection, meaning that in the event your business owes debts or gets sued, only your business assets are put at risk. Your personal assets (property, vehicles, retirement funds) are considered off-limits.

Getting a DBA doesn’t increase protections for business owners. So, if you’re a sole proprietor, there’s no legal separation between you and your business, regardless of whether or not you have a DBA. For those who want liability protection, forming an LLC is the best way to get it.

Does a Michigan DBA keep my personal information off the public record?

No. DBA registration is designed to allow consumers to figure out who they’re doing business with, so you must include your business name and other information on your DBA certificate. And if you work from a home office, this could include your home address.

To restrict the amount of personal information you provide on government documents, you can hire a Michigan registered agent like Northwest and form an LLC. We can list our information instead of yours on state documents wherever possible, increasing your privacy.