If you\u2019ve ever tried to set up a business, you know how difficult it can be to decide on the structure the business should take. Once that\u2019s out of the way, it\u2019s time to work on branding, at which point you need to choose a name. Many business owners don\u2019t want to associate their names or surnames directly with their brand; instead, they\u2019ll use a \u201cdoing business as\u201d name (DBA).<\/p>\n\n\n\n
In this article, we\u2019ll explain what a DBA is, how to get a DBA, why you might need one, and any other related issues that might be causing you confusion. We\u2019ll get right into it with a definition.<\/p>\n\n\n\n
A DBA is a pseudonym or alternative name that differs from the legal name of the business or that of its owner(s). It can be used to refer to the business as a whole or partially in instances where the owner(s) want to operate the business under a name other than its legally registered name. It\u2019s also referred to as a fictitious business name, trade name (in Colorado, for example), or assumed name, depending on your location.<\/p>\n\n\n\n
A DBA doesn\u2019t have anything to do with a business\u2019s structure; it\u2019s merely an official nickname used to present a brand to the public. A sole proprietorship, partnership, LLC, or any other business structure can get a DBA. <\/p>\n\n\n\n
One famous example of this is Meta, Facebook\u2019s newly renamed parent company. The company\u2019s legal name is Meta Platforms, Inc., but its DBA is simply Meta. The original business entity and structure remain the same, but once the business owners create a DBA, they can market their company much more effectively using the DBA name.<\/p>\n\n\n\n
DBAs are not separate legal entities and will not offer you any asset or liability protection, no matter your business structure. They do, however, allow you to receive payments, open bank accounts<\/a>, and market your business under that name.<\/p>\n\n\n\n You may or may not need to register your DBA; this varies by state. It\u2019s also important to note that DBA registration is not the same as registering a trademark; upon registration of your DBA, you should bear in mind that the additional rights and benefits associated with trademarks don\u2019t apply to DBAs, unless you go through a separate trademarking process. <\/p>\n\n\n\n So, how do you go about registering your DBA? In the USA, you can do this by filling out the required paperwork and paying the filing fee at your local, state, or county agency, depending on the state.<\/p>\n\n\n\n In this section, we\u2019ll answer some questions associated with registering a DBA to give you a better understanding of how it works.<\/p>\n\n\n\n Although businesses can go without filing a DBA, having a trading name can be great for branding purposes. Any formal or informal business that intends to trade under a name other than their legal one – or that may do so in the future – needs to file a DBA in most states. This is to prevent random \u201cbusinesses\u201d springing up under false names to defraud unsuspecting individuals.<\/p>\n\n\n\n The main purpose of DBA filing is to prevent such cases of fraud. Once registered, the status of the business, its structure, and its ownership become clear not only to clients, but also to the state authorities where the business is registered. This way, everyone knows who they\u2019re dealing with, especially if and when legal issues arise.<\/p>\n\n\n\n DBAs are potentially more useful for partnerships than for sole proprietorships, simply because without a DBA, the business name will carry the surname of all partners. The more partners there are, the messier this can get. <\/p>\n\n\n\n A \u201cdoing business as\u201d (DBA) name is also advised for formal business structures like an LLC. That way, if the business owner(s) want a rebrand, changing their DBA is much easier than filing for a legal name change.<\/p>\n\n\n\n You have great flexibility when picking a name for your DBA. It could be an acronym or an abridged version of your own name, a play on words, or an entirely new name. Filing a DBA with a brand new name is common among business entities trying to rebrand or branch out to focus on a single aspect of the business. You\u2019re at liberty to be more specific about the nature of the business through the name of the DBA for the sake of creating awareness.<\/p>\n\n\n\n You don\u2019t have to file your DBA at any specific time, but it makes sense to do so early on, before you invest in branding. Don\u2019t worry, though – even if you\u2019ve been trading for years without a DBA, it\u2019s not too late to get one. <\/p>\n\n\n\n Reasons to get a DBA later on include business expansion, rebranding, requirements from your bank, and bidding for contracts.<\/p>\n\n\n\n The financial status of the company should also be considered when determining when to file a DBA. Registering multiple DBAs at once can get costly, so it\u2019s worth considering whether you really need a DBA and, if so, how many. A better strategy might be to register separate business structures instead of piling up a series of liabilities on one business.<\/p>\n\n\n\n In some jurisdictions, you\u2019ll be required to file your DBA within 30 to 60 days after its first use.<\/p>\n\n\n\n The process for registering a DBA varies based on the state where your business is located or was registered. You should visit the county clerk at the closest registry or the website of the Secretary of State to find out what peculiar requirements apply to your jurisdiction. Your state may also require you to place a local newspaper ad for a stipulated amount of time. The filing fees range from $10 to $100. <\/p>\n\n\n\n You can manage the process yourself or hire the services of a professional to do it for you.<\/p>\n\n\n\n Conducting a name search by yourself or through the state will show you whether the name in question is available at both state and local levels. You should also be aware of the naming requirements applicable in your state. After you\u2019ve confirmed the name\u2019s availability, you can also conduct a quick web search to see if the URL is available and buy the domain name. After all, your business will likely need a website. <\/p>\n\n\n\n After securing your DBA name, you may be required by your state to carry out business operations before proceeding with the registration process. Some examples of preliminary operations include printing branding materials like complimentary cards, staff identity cards (where necessary), and brochures.<\/p>\n\n\n\n At this point, you\u2019ll need to submit your proprietor information, including contact information, telephone numbers, and email addresses. This stage can be completed online. The completed forms can be handed back to the appropriate officer(s) in charge either online or via email. Whether approved or denied, you will be informed appropriately and this concludes the necessary steps to set up DBA.<\/p>\n\n\n\n Depending on your jurisdiction and the registration status of your main business, you may not be able to use certain words in the name of your DBA, including \u201cInc.\u201d and \u201cCorp.\u201d at the end of the name. This will usually only apply if your business isn\u2019t incorporated. <\/p>\n\n\n\n When you start a business<\/a> and need to find out how to get a DBA in your state, you may want to look out for requirements about announcing your trading name. Some states will ask that you announce your DBA in a local publication for a specific period. This is to create awareness that your legal business name and DBA belong to you and have been duly registered.<\/p>\n\n\n\n In some jurisdictions, you may be required to present a certificate of good standing from the office of the Secretary of State before your DBA registration can be accepted. This requirement is mostly for LLCs to show proof of the good standing of the business and its owner(s).<\/p>\n\n\n\n DBAs expire and need to be renewed after a certain period. In the majority of states, the lifespan of a DBA is five years. Take note of the registration date and the eventual expiry date to avoid any dramas.<\/p>\n\n\n\n If the information you provided at the point of the DBA filing changes, your DBA may need to be revised. This can include changes to the structure of the business or to your principal address.<\/p>\n\n\n\nRegistering a DBA <\/h2>\n\n\n\n
Who Needs To File a DBA?<\/h3>\n\n\n\n
What Names Can Be Used as DBAs?<\/h3>\n\n\n\n
When Should You File a DBA?<\/h3>\n\n\n\n
Step-by-Step Guide to DBA Registration<\/h2>\n\n\n\n
Step 1 – Check business name availability <\/h3>\n\n\n\n
Step 2 – Ensure you fulfill the operating requirements<\/h3>\n\n\n\n
Step 3 – Complete the necessary forms <\/h3>\n\n\n\n
Other Things To Note About Filing a DBA<\/h2>\n\n\n\n
1. Restrictions on names<\/h3>\n\n\n\n
2. Announcement of your DBA<\/h3>\n\n\n\n
3. Certificate of good standing<\/h3>\n\n\n\n
4. DBA renewals<\/h3>\n\n\n\n
5. Information change<\/h3>\n\n\n\n
6. Employer Identification Number<\/h3>\n\n\n\n