Doing Business As (DBA)

DBA stands for “doing business as”. A DBA name is also referred to as a “trade name”, “assumed name”, or “fictitious business name”. The purpose of registering a DBA name is to notify the public that a particular person or business entity is conducting business under a name other than its legal name.

• What Is a DBA?

  • A DBA is a formalized, legal nickname for a business or company. DBAs are not separate legal entities from their parent organization and do not serve as a business structure. DBAs also do not provide any sort of asset or liability protection to a business.

  • Certain business structures may be required to file a DBA if the owners want to do business under a name that is separate from their personal names. However, DBAs aren’t necessary for every business. And there are several advantages and disadvantages to consider before registering a DBA with your state, county or city.

  • Depending on industry, state, and locality regulations, licenses and permits may be required.

  • If you choose to operate under a name different than your own, you will most likely have to file a fictitious name (also known as an assumed name, trade name, or doing business as (DBA)).

  • You must choose an original name; it cannot already be claimed by another business.

• Positive attributes:

  • A registered DBA means that legally, a business is able to call themselves and conduct business under a different name than the one they may have used when the business was first established. This means that you can use this new DBA name when opening bank accounts, receiving payments and marketing your business.

• Negative attributes:

  • Businesses affiliated with DBAs bear the same legal and financial liabilities incurred by the name on a DBA registration. For the purposes of filing taxes and other official matters, any DBA business must use their original company name as registered with the state in which the founding business was established.

  • It is possible to hold and use multiple DBA registrations under a single corporate entity, but all of the DBA names will refer to the parent company with respect to any lawsuits or other matters related to legal or financial liability.