If You Fail to File

If You Fail to File
Registering a business name is very important for your own protection as well as for compliance
with the law. Registration of that name gives you exclusive rights to it. It also keeps others from
filing the same or a similar name and capitalizing on the hard work and investments you have made
in your business.
Unfortunately, there are individuals who lurk in the shadows waiting for just such an opportunity.
About eight years ago, we had a business owner in one of our classes who had built a very
successful electronics firm. However, he failed to file a DBA. Someone else discovered his error,
filed under his business name and offered the option of either paying to buy the name back or
ceasing to do business under that name. The business owner refused to pay the blackmail and chose
to re-establish under a new name. However the continuity of his business was set back and he lost a
large amount of business trying to re-establish under the new name.
The time and money required to file a DBA is very small compared to the benefits you will derive
from becoming the legal owner of your business name.