As part of Delaware's ongoing efforts to streamline business registration, the state has enacted a significant change to register doing business as (DBA) names, also referred to as assumed names or trade names.
Effective June 2, the state will transition from a fragmented, county-level DBA name registration system to a unified, statewide registration process administered by the Delaware Division of Revenue. This change stems from the enactment of House Bill No. 40, signed into law earlier this year, and reflects Delaware's effort to modernize and centralize its business registration infrastructure.
What's Changing?
Under the previous system, businesses operating in Delaware under a name other than their legal entity name were required to register that name in each Delaware county where they conducted business. This process was often inconsistent, particularly for businesses that operated statewide or those outside of Delaware that used assumed names for branding or licensing purposes. The new statewide system will consolidate all DBA name registrations into a single online portal, Delaware's "One Stop" business registration system, ridding of any future filing requirements with individual counties.
Importantly, this change is not limited to new DBA name filings, but to all existing county-level DBA registrations that will expire under the new system. Businesses must therefore re-register any existing assumed names between June 2 and Aug. 1 or risk losing rights to those names.
Why Does This Matter?
The transition to a statewide system brings both benefits and risks:
Benefits:
- Centralized Access. Businesses will be able to manage their DBA filings through a single interface rather than navigating multiple county systems.
- Simplified Procedure. The new process eliminates the need for notarization, streamlining, and expediting name registration.
- No Renewal Burden. Unlike many other states, Delaware's new system does not require periodic renewal of trade names. A registered name remains valid so long as the business license associated with it is active.
Risks and Urgency:
- First-Come, First-Served System. Once the new system opens on June 2, names will be available on a first-come, first-served basis. This means that a name currently used and registered by a business at the county level could be registered by another entity if the original registrant does not act quickly.
- No Grace Period Beyond Aug. 1. If a business fails to re-register its assumed name within the two-month window, it loses its priority and may be unable to reclaim the name.
Who Is Affected?
This change affects all businesses that:
- Operate in Delaware under a name different from their legal entity name.
- Have registered a DBA name in any of Delaware's counties.
- Are foreign entities (not physically located in Delaware) that maintain a Delaware DBA registration for legal, contractual, or intellectual property purposes.
It is important to note that even businesses not actively conducting operations in Delaware can register a DBA name under the new system, provided they obtain a Delaware Business License or a "Trade Name Only" license, a new category established for entities needing name protection but not performing business within the state.
Final Thoughts: A Small Window, High Stakes
While this change represents a logical step forward in administrative efficiency for the state of Delaware, it poses real and immediate risks for businesses that fail to act promptly. The re-registration window will likely result in a scramble for popular names and valuable brand identifiers. Delays could result in costly disputes or the need for rebranding.
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