Long-term Effect of DBAs and Subsidiaries on BRAND

[MetalGear]

Hi Everyone,

I started a corporation about a year ago and after doing tons of research, I finally found a niche to pursue.

However, that niche has a different name than the corporation.

I have read plenty about filing for a DBA name and trademark, but are there any cons to going this route?

Should I file for a subsidiary or should I dissolve the previous corporation and start a new one with the name of my business and brand?

I am concerned about potential name copy-cats...luckily I have secured the domain and social media user names. Is there something I am missing?

Thanks,
MG

 

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[MetalGear]

I am leaning towards keeping the company structure as is...and filing for a subsidiary under the current S-CORP if the new venture is a success....

Any thoughts though, especially for people that have run into the same issue?

Thanks,
MG

 

[CareCPA]

I was looking into DBAs for a different reason today. Not sure about NY, but in PA, filing a DBA does not guarantee you exclusive use of the name - other people can actually use the same name (which seems ridiculous). I would go ahead and file for the name to cover your bases.
Whether you dissolve and file a new one, or file a subsidiary, depends on other tax and legal matters that would need to be analyzed.

 

[MetalGear]

I spoke to my mentors and the suggested that filing for the DBA until I make enough cash-flow to justify forming a completely new LLC or CORP makes the most sense.

Would highly value input from anyone with more experience

MG

 

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[CareCPA]

I spoke to my mentors and the suggested that filing for the DBA until I make enough cash-flow to justify forming a completely new LLC or CORP makes the most sense.

Would highly value input from anyone with more experience

MG

In my state, the filing cost for creating a DBA and creating an entity are comparable. Your added costs would come on the compliance side (tax returns, mostly, and if it makes things more difficult for your accountant/bookkeeper). I don't know if any marketing/operations materials would be different?

I often forget that since I do my own accounting and taxes, that these things can add significant costs to others' businesses.
I'm interested to hear input from others on the actual operations side.

 

[MetalGear]

Oh, and to make it more "sticky" and add more national protection on the cheap, they recommended Trademarking the name

Source: people with $20M exits. Glad they are nice people

MG