DBA

DBA stands for “Doing Business As” and refers to an alias or alternate name under which a company conducts business.

What is a DBA?

A DBA isn’t a separate legal entity.

It’s an official registration of a business name that differs from the legal name of the business entity.

Terminology: Depending on your state or locality, a DBA might be referred to as:

• Assumed Name
• Fictitious Business Name
• Trade Name

Why Use a DBA?

• Branding: It can be more marketable than the legal business name.
• Privacy: Sole proprietors and partners can operate under a business name without having to reveal their names.
• Compliance: Some states require a DBA if the business name doesn’t include the owners’ names or suggests additional services not mentioned in the company’s original charter.
• Bank Requirements: Many banks require proof of a DBA registration to open a business account under the fictitious name.

How to Obtain a DBA:

1. Name Search: Before registering, search your state’s business database to ensure your desired DBA isn’t already in use.
2. Registration: This typically involves filling out a form with the business’s details and the desired DBA. The specific form and the agency you’ll file with vary by state.
3. Fees: There’s usually a registration fee, which varies.
4. Publication Requirements: Some states require you to publish a notice in a local newspaper about your new DBA.
5. Renewal: DBAs don’t last indefinitely. Depending on the state, they might need renewal every 5-10 years.

Limitations of a DBA:

• No Exclusive Rights: Registering a DBA doesn’t prevent another entity from using the same name. For exclusive rights, consider a trademark.  
• No Legal Protection: The DBA doesn’t provide limited liability protection. That’s the domain of legal structures like LLCs or corporations.
• Not a Business License: Acquiring a DBA doesn’t replace the need for necessary licenses or permits.

Key Considerations about DBAs:

• Location-Specific: Each state has its regulations regarding DBAs, so always check local rules.
• Multiple DBAs: A single business can have multiple DBAs.
• Changes: If your business information changes (like an address), update your DBA registration.

While a DBA doesn’t offer legal protection or exclusive rights to a name, it’s an essential tool for branding, compliance, and flexibility in business naming. 

Always ensure you’re meeting local requirements and keep your registration updated.