What’s the right move – changing a business name, or adding a DBA if you’re starting a ghost kitchen? That’s a great question and a very important one to ask before making any changes. If you operate a successful brick-and-mortar restaurant, your customers already know to find you with your existing name. If you intend to keep that model running, you may want to consider filing for a “Doing Business As” name – commonly known as a DBA (also known as an assumed name, fictitious name, or trade name) for your new business concept.
Ghost kitchens are popping up everywhere in a time when food delivery has been crowned king of the food and beverage industry. Starting on the streets of New York in 2015 as a “glitch” in the newfound food delivery industry, starting a ghost kitchen has become one of the most popular small business startups for 2022. The benefits of low-to-no extra overhead, being able to recycle an existing kitchen or rent commercial space are all very good reasons why the delivery-only model is likely here to stay. Ghost kitchens are often started as a side hustle, but they can grow into much more than that. They are often used to provide catering services for events and parties, but they can also provide food for restaurants and other businesses.
In this article, we’ll cover:
You’ll also find links to our name change checklist and to order a company name change (Amendment) or ghost kitchen DBA package today.
Changing your business name involves updating your company’s name and identity with all appropriate tax and government agencies. If it makes sense to go through that process, changing your company’s name to better align with products, services, and your overall business approach can be a winning business booster. It can also be a business killer. When you’re already running a successful dining establishment, a name change can make it difficult for referrals to find you, and also be confusing to the public as to what kinds of foods or services are available. A new name can make regular customers nervous that there’s new management, or worse – new ownership, which could turn them away without inquiring further. That’s a very expensive risk to take if you don’t really need to change your business name. Our checklist walks you through the process of deciding if a name change is right for your restaurant.
A DBA, on the other hand, is an abbreviation for “Doing Business As.” A DBA is a legal way of doing business under another name without changing the company’s legal name. If your books are squeaky clean and you can keep finances and assets separate, a DBA may be an appropriate choice. Having a DBA gives you a unique name and distinguishable identity to brand and market your new offerings. It can also be an ideal option if you’re managing multiple business models under one business entity, such as a Limited Liability Company or Corporation.
Changing your company name might also affect other aspects of your business, like taxes, bank account names, and more. So it is advisable to do the necessary research and weigh the pros and cons before you make a decision.
How Do I Set Up a DBA? | How to Hire Employees for LLCs, Corporations, and DBAs
If you wish to change your business name, then you may have to also change your EIN. The IRS outlines EIN name change requirements in this document. If you are required to update the business name associated with your EIN, you’ll have to submit an application with supporting documents for approval.
The act of changing your company’s official name is referred to as filing an “Amendment”. The forms are filed with the IRS online, by mail, and by fax. Mailed applications are typically sent to the office where your tax returns are filed. You can check the IRS website to find your branch address, or we can file the application for you.
Whether you have decided to change your name completely, or just set up a DBA for your ghost kitchen, the point is to develop a catchy name and branding that suits your customer base. If you have checked out our name change checklist, you can see that there’s a lot to consider if you’re thinking about changing a company’s name. Your name becomes your identity, so you’ll want to spend the time it takes to develop an effective business name, along with a logo and marketing materials that express your goals and offerings.
Once you have developed the ghost kitchen name and identity, it’s time to tell everyone your virtual doors are open! Make sure to publish announcements with your new name and logo on social media channels and on your website. If you can afford it and it makes sense, you may want to contact local TV stations and newspapers to get the word out too. The more exposure, the better.
When you’re already running a kitchen, it makes perfect sense to get as much bang for your buck out of it. Whether it’s baking, catering, or individual meal delivery, the modern ghost kitchen concept is highly popular and likely to stick around for the foreseeable future. If you’re stepping into this concept, we hope you have found helpful information and useful tips to help you decide whether changing your business name or just adding a DBA is right for your ghost kitchen. Following our checklist will help you file the paperwork. Our website is also loaded with tips, tools, and resources for everything you need to start and manage a business. Thousands of entrepreneurs choose MyCompanyWorks for simple, fast, and affordable online business formation and management services. Find out how we can work for you.
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This entry was posted on Wednesday, February 23rd, 2022 at 1:59 pm and is filed under New Business Ideas, Small Biz Management, Starting A Business. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.