A “Doing Business As” (DBA) name, also known as an assumed name, trade name, or fictitious business name, is simply a name under which a business operates that is different from its legal name․
Purpose: It allows a business to operate under a different name without creating a separate legal entity․
Example: John Smith, a sole proprietor, might operate his plumbing business as “Smith Plumbing”․ “Smith Plumbing” would be his DBA․
Why Use a DBA?
- Branding: To create a more memorable or descriptive brand․
- Simplicity: Easier to use a DBA than formally changing a business’s legal name․
- Expansion: To operate different divisions under distinct names․
Who Needs a DBA?
- Sole Proprietorships and Partnerships: Typically required if they operate under a name different from the owner(s)’ personal name(s)․
- LLCs and Corporations: May need a DBA if they want to use a different name for a specific product line or division․ This is less common, as they can often create subsidiary companies․
How to Obtain a DBA:
- Check Availability: Ensure the desired name isn’t already in use․ This often involves searching state and local business name databases․
- File with the Appropriate Authority: The specific requirements vary by jurisdiction (state, county, or city)․ Typically, you’ll need to file an application and pay a fee․
- Publication (Sometimes Required): Some jurisdictions require you to publish your DBA in a local newspaper for a specific period to provide public notice․
Important Considerations:
- DBA is Not a Legal Entity: It doesn’t create a separate legal entity․ The business owner(s) remain personally liable for the business’s debts and obligations․
- Legal Name Still Required: Your legal business name must still be used on legal documents, contracts, and official correspondence․
- Banking: To open a bank account under your DBA, you’ll typically need to provide proof of your DBA registration․
- Trademarks: A DBA registration doesn’t provide trademark protection․ If you want to protect your brand name, you’ll need to register it as a trademark․
- Renewal: DBA registrations often need to be renewed periodically․
