US Economy: How entrepreneurs are benefiting from DBA structures

In a recent profile published by the independent Office of Advocacy, a branch within the U.S. Small Business Administration noted the crucial importance small-medium enterprises (SMEs) have towards fuller development of the U.S. economy before and throughout the novel COVID-19 pandemic. The current Acting Chief Major of the Office of Advocacy, L. Clark lll comments on the profile, stating that the nearly 33 million SMEs currently operating in the U.S. play a vital role in the financial growth and security of individuals and each state.

As we approach the second anniversary since the start of the pandemic, the United States, among other leading developed nations have seen an uproar of new businesses coming to life as local and national restrictions have been eased. In some states, such as Florida, current statistics reveal that more than 3.5 million employees are employed by the nearly 2.8 million SMEs currently registered and operating in the state. This amounts to more than 41% of Florida employees, making SMEs one of the key engines of economic growth within the state.

The financial schemes and programmes backed by government assistance have helped secure millions of jobs. Although these financial aid schemes helped shape the current state of business development in the country, larger proportions of citizens have now left behind the traditional workforce to start their entrepreneurial ventures. But how have things changed since the start of the pandemic, and what have been key drivers of success to help them benefit from leaving job security and starting their business ventures?

The Importance of DBA Structures
While most states house similar regulations and processing to start and open a new business, a key element for entrepreneurs has been the importance of the DBA structure. Doing Business As is an additional process, which requires entrepreneurs to register and notify the public of the name under which they will be operating their new business. This is a legal process that enables entrepreneurs to create and register a new business that complies with state and federal regulations.

Although a DBA can't guarantee protection against personal assets, as this falls under the type of business structure in which the new business will be operating as. In Florida, a DBA is known as the fictitious name under which the new business will be registered, and to file a DBA in Florida, entrepreneurs will need to do so with the Secretary of State.

Publication of Notices
To comply with local and federal authorities, entrepreneurs need to seek approval from the Secretary of State and also publish a notice that can be viewed by any member of the public. In doing so, it notifies the public of the person(s) who will be opening and operating the business, but also that the new DBA they have chosen is a legal and registered business.

Adding this step in the DBA process has made it easier for both entrepreneurs and the public to be notified of the legal aspects that are carried along when starting and registering a new business.

Ease of Registration
It might seem tiresome to publish a DBA notice with local newspapers and media outlets while ensuring one remains compliant with publication requirements, the overall ease of DBA registration has become seamless as new technology has been introduced. In some states, filing a DBA is compulsory with the Secretary of State, and new applications have to be filed in person. In some instances, online applications and filing procedures can now be completed, as the pandemic has seen the need for more advanced business portals, both private and public.

The future of DBAs and Entrepreneurship
Both the DBA structure and entrepreneurial ventures have become intertwined with one another, opening a new system of regulation and business formation procedures. Overall, it's become quite noticeable that The Really Useful Information Company (TRUiC) have helped younger entrepreneurs have more choice on the type of name under which they want to register and operate their business, allowing them more movement to gain financial support, and help secure authoritative influence in their individual markets.