As a business owner, it is important to register the company for the first time and select the structure for the entity from LLCs and corporations. During this entire process, you may hear about a form in the secretary of the state’s office for the DBA. If you are wondering what QuickBooks DBA is and how to setup DBA in QuickBooks, we will enlighten you.
In this guide, we will talk about DBA, multiple DBA, the procedure of setup DBA in QuickBooks Desktop and QuickBooks Online Plus. It covers the following information:
Doing Business As (DBA) is the name under which a business owner operates and markets. By using DBAs, you can operate a name other than the registered and legal name. If you use DBA under a different name than the name mentioned on file with the respective state then you have to complete one of the DBA forms.
If you are planning to run a business under a different name than the one you already have declared on a legal form then you will have to submit a DBA with the respective secretary of the state’s office. By doing so, you can make the assumed name of the business a matter of public record.
There are a number of reasons that small business owners may need to form a Doing Business As (DBA). These reasons are as follows:
Hence, DBA is required. By submitting DBA, you can get an EIN which allows you to open a separate business bank account. This gives you more credibility to the company and it becomes easy to manage your business finances.
In QuickBooks Desktop, if you want to set up the DBA as a class, you can do that easily. As you select the class, it automatically shows up in the invoice. For that, first, you will have to enable the class tracking feature and then set up the DBA as a class.
You can follow these instructions to enable class tracking for transactions:
After enabling the class feature, next, you have to set up the DBA from the class list. Here are the steps for that:
Now, when you create the invoice, all you need to click on the CLASS drop-down. Thereafter, you can select any DBA.
With the class track feature, you can track income, location, expense by department, project, and property in QuickBooks. This class tracking feature is only available in QuickBooks Online Plus.
If you are using QuickBooks Online Plus then you can set up the DBA as a location. All you have to do is set up each location for the name of DBA, telephone, address which will be printed on your invoice after selecting the location on your invoices.
To proceed with this, first, you will have to enable the location tracking or class tracking feature in Settings. Here are the steps for that:
Once you enable this feature, you will see the drop-down menu for Locations or Classes on the forms.
After you set up the class or location tracking, you can start creating the categories for them. For that, you can follow these steps:
This is how you can enable the class or location feature in QuickBooks Online Plus and create categories for the same.
If you have one business and use different names then you can use multiple DBAs. But if the businesses are different then they need to have their own company files. In addition, each business should file its tax return. Multiple schedule C forms are also permitted.
Besides that, you can customize the templates. You can also create a class per DBA in order to track sales under each. But this should be done only when the DBA belongs to the same business.
In case you want to set up several DBAs under one business account in QuickBooks then you can use the class feature. Do the following:
Here, you can classify each transaction. But remember that you can also run the separate P&L for DBA also known as class.
The default name of your company appears on the sales forms such as purchase order and invoice depending on the Account and Settings you have made. If you are sending an email with an invoice, you can show the name of your company on that.
To do so, you can follow the steps as a workaround where you can edit the information before you send your email with the invoices. Thereafter, you can change it again to the correct company name.
To be more specific, you can pursue the following steps:
This way you can change the details for your company name. Remember that after you send the email with the company name, you change it back to the correct name.
There can be a scenario when the DBA names or classes cannot be visible on invoices that you have sent to the customers. In such cases, you can go to the settings and enter the DBA manually as a class so that it can show up on the invoices.
This is a workaround to enter the names manually. Follow these steps to understand better:
After following these steps, you can create a dummy invoice. Then, send an email to yourself with an invoice to check if you can view the DBA names on the invoice.
Tip: To track the profit and loss report for each class, you can click on the class under the CLASS column.
Most users have this concern about whether they should have separate line items or companies for two different DBAs. If you want to record the transaction for multiple DBAs, you can use the Location or Class tracking feature to manage and classify the transactions.
All you have to turn on this feature so that you can assign a location or class for the transactions. Here is how you can do that:
When you are done implementing these steps, you can try opening a transaction. This way you can check if you can track the location as a whole transaction. Even for classes, you can either use the entire transaction or use it for each line item. If required, you can use Reports so that you can track how you are doing with location and class tracking.
Adding a new vendor in QuickBooks is quite easy. If a vendor is a sole proprietor or a DBA and has an EIN then you can simply add a new vendor in the Vendor Center. Let us show you how to set up a new vendor in QuickBooks Desktop.
This is how you can add a new vendor to the Vendors List in QuickBooks Desktop. All you have to make sure that the vendor is a sole proprietor or a DBA and has an EIN.
If you want to add the DBA under the name of a vendor for the 1099-MISC form then you can do that easily. The details on the three fields in QuickBooks occupy the 1099-MISC forms.
Vendors’ profile shows these three name fields:
To enter the DBA under the name of a vendor, you can enter the Company Name field. Thereafter, you can add the Vendor Name in the Full Name field. As you do so, the Company Name and the Full name will show up on your 1099-MISC forms.
DBA can also be added on the 1099 MEC second line in QBO. All you have to do is go to the Payroll, select your contractor name, and enter the DBA under the Business name. Thereafter, you can fill in the required details.
You can follow these steps to add a DBA on 1099 NEC.
As you follow these steps, the name of DBA will be added under the business name on the 1099 NEC form.
Using and setting up QuickBooks for your small business can make a huge difference in the record’s accuracy. If you are using QuickBooks multiple DBA for your business then you should organize each one in your QuickBooks account to stay organized.
In this detailed guide, we have taught you how to setup DBA in QuickBooks Desktop and Online. Along with this, we have provided the best information related to the DBA filing procedure. I hope you find this guide useful.
Facing QuickBooks error H202 when accessing QuickBooks company files? Read this guide to find some effective methods.