Doing Business As (DBA): What You Should Know

In the thrilling world of business ownership, the term “DBA” is often heard. But what does it stand for? Do you need one as a small business owner? There are a few nuances to “Doing Business As”. Business owners can become confused about what they are and why some entrepreneurs choose to get them. For this reason, we’ll share answers to these common questions:

• What is a DBA?
• What is a Doing Business As all about?
• How do you get a DBA?
• What are the pros and cons of DBAs?
• What are some Doing Business As registration tips?
• And more…

Read on as we paint a clear picture of this term so you can assess if it’s right for your small business.

What is a DBA?

DBA stands for “Doing Business As.” Luckily, its meaning is straightforward and not a complex idea. Essentially, it allows your company to operate under a different name than the official legal name. DBA names are also referred to as “assumed names” or “trade names.”

A DBA is different than your business’s registered name. For example, when you form a business, the company generally operates under the name you put in all your formation documents. However, you can also register your company with a DBA and use that name for your business.

Here’s a real-life example: A sole business owner, Allison, owns her own company as a realtor. She created an LLC called Home Hub LLC. She recently got her broker’s license and decided to create a DBA for that arm of her company – Hub Connect.

Advantages of registering a DBA name

There are a few reasons why entrepreneurs choose to register their company under a DBA.

1. Enhanced branding

Having a catchy DBA helps you establish a brand identity. Say your legal business name is long and hard to pronounce or overly technical. In this case, you could create a DBA with a more shortened and jazzed-up name. Let’s face it — a memorable name can help make your company stand out from competitors.

2. To prime for expansion

Registering a DBA allows you to operate multiple business branches under one entity. So, as your products or services expand, you can open DBAs for each branch. Let’s take Sarah, for example. She’s a graphic designer, videographer, and multimedia editor. She opens as an LLC, but as she expands her services, she creates a Doing Business As for each separate specialization.

3. Privacy

A DBA can help you to keep your personal name separate from your company. It provides a layer of privacy, which can be crucial if you’re a sole proprietor or partnership.

Disadvantages of DBA

While DBAs are useful for many entrepreneurs, it’s essential to understand some of the limitations.

1. No limited liability protection

A DBA doesn’t offer the same limited liability protection as an LLC or corporation. They could therefore leave you personally open to the liabilities of operating a company. So, if you want limited liability protection, you will want to explore creating a formal business entity structure.

2. No trademark or exclusive right to the name

When you register a DBA, you don’t necessarily have an exclusive right to the name, so others may be able to use the same name for their business. If you register a DBA and want exclusive rights to the name, make sure to file a trademark. You can do this by filing a separate registration with the United States Patent and Trademark Office (USPTO).

3. Extra steps involved

While the steps are minimal, it does take extra effort to file a Doing Business As. You’ll have to file administrative forms at the local, county, and state levels. You could receive local, county, or state records.

Doing Business As registration: How to get a DBA

Thankfully, registering a Doing Business As is a straightforward process. Here are important steps to take and requirements to meet to ensure a smooth process:

1. Determine a business structure

Define the legal structure of your business before applying for the DBA. The process differs depending on your entity type. Block Advisors is here to make it more clear.

Learn more about the business formation services at Block Advisors.

2. Select a name

Choose the name you’d like your business to operate under.

3. Obtain and file Doing Business As forms

Check with your local, county, and state government to obtain the necessary paperwork (including a DBA application) for filing a DBA. Complete and file the required paperwork. In most cases, there is a fee associated with filing the DBA. Depending on the state, you can pay via money order, cashier’s check, or pay online. In addition, some states require document notarization.

The cost varies by geographic location. Some states have additional requirements like filing with your secretary of state. Check with your locality for details.

4. Publicize the DBA

Some states require you to publish a notice of a new DBA in a local newspaper or publication to inform the public of the business name.

5. Renew

Depending on where your DBA registration is complete, you may have to renew your DBA now and again. Make sure to check with your local government for these important details!

Some states require you to re-file or file a new DBA if any of the original filing details change — like getting a new office or address.

DBA form filing tips

There are a few other tips to consider when filing a DBA. Here are a few of them:

• If you operate under an assumed name not registered as a DBA, you could incur fines.
• Before making big business moves, consider seeking the advice of an attorney to evaluate the considerations and implications of business structure selection and entity formation. For example, if you need clarification on the legal aspects of registering and maintaining a DBA, consult with an attorney for guidance.
• Keep records of all DBA registration documents and renewals for your business records for reference in case of a tax audit or legal dispute.
• A DBA is not a business license; it’s a name. Check with your state for details regarding how to obtain a business license, if applicable.

Is a DBA right for you?

DBAs are a valuable business tool used to brand your business and maintain personal privacy. But remember, it’s not exactly a legal or business entity, so it doesn’t provide the same protections. Your business entity choice has several significant implications, including governance responsibilities, capital requirements, owner rights, and tax obligations. And each has its benefits and things to watch out for.

While there are multiple small business considerations, let Block Advisors empower you with resources to help you make a more informed decision. Learn more about Block Advisors’ business formation products and services.

And don’t forget: You can also connect with a Block Advisors certified small business tax pro about your tax situation to maximize your tax savings as a business owner!

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This article is for informational purposes only. The content may not constitute the most up-to-date information and should not be construed as legal advice.