What is a DBA?
DBA stands for "Doing Business As" and is an official registration of your business name. In some states, this can be referred to as a "fictitious business name" or "assumed" name. A DBA name is different from your personal name.
If your business conducts any business - such as transactions, marketing, advertising, or printing out business cards - under a name that isn't your own name, you will need to file and register a DBA in the state or county you're doing business in. A good example is if Jane Smith wanted to start "Jane's Tax Services," she would need to file for a DBA. Once you have conducted a business name search and filed for a DBA, you'll be able to claim the name for yourself. This helps to reduce any potential chances of fraud.
What are the benefits of filing as a DBA?
The benefits vary depending on who is filing. A sole proprietor can operate under a name other than their legal name which can have many benefits, including added credibility and professionalism, as well as level of separation or anonymity. DBA registration allows a sole proprietor to open a separate bank account under the business name (requirements vary by bank), enabling customers to make payments directly to the business rather than to you personally.
For an established business, a DBA can allow you to conduct business under any number of alternate names in addition to the one filed with the original formation. That means as a business expands into other markets or takes on new business ventures, the business owner can add additional names or lines of business with ease.
Does a DBA keep others from using my business name?
A DBA is simply a name that identifies a business, and does not protect the name from being used by other businesses. In order to protect your name, you would need to consider incorporation, or filing a trademark.
What kinds of businesses should file a DBA?
Since a DBA is a business name only, there are no added maintenance requirements, tax implications, or a formal business structure to put into place. This can be an advantage for a sole proprietor, freelancer, or partnership that plans to start a business under a name that isn't their real name. An existing LLC or Corporation can also file a DBA when the business wants to conduct business under a different name than the one registered during the original formation.
What are the requirements for DBA registration?
A DBA can be almost any name under which you are doing business. You cannot, however, make your DBA a corporate name such as XYZ, Inc. if you do not have a corporate name that is XYZ, Inc. In other words, when filing a doing business as registration, do not add 'Inc.' or 'Corp.' to your name to create the impression that your business is a corporation when, in fact, it is not.
What is an example of a DBA and how it works?
As an example to demonstrate the usefulness of a DBA, let's imagine that Jane Brown was a pastry chef who wanted to open her own shop called "Donuts Unlimited." She wants to eventually open a bank account and accept payments on behalf of Donuts Unlimited, so she files a DBA: "Jane Brown, doing business as Donuts Unlimited." By filing her DBA, she is able to set up a bank account for her business, and cash checks written to Donuts Unlimited.
In another example, let's say there is a corporation named "ABC, Inc." Later on in the existence of this business, it expands into the business of selling XYZ. It could form a second company, but that would mean that all of its maintenance formalities and annual requirements would double. That may be fine, but in this case it could file a DBA: "ABC, Inc., doing business as 'XYZ.'" This would allow it to conduct business under this additional business name without forming a new entity.
What do I need to apply for a DBA online?
Applying for a DBA online is often the easiest way to register a business name. However, the process can be confusing due to varying state requirements. That's why we offer a service to simplify the process and ensure it's done correctly.