Doing Business As (DBA)

A Doing Business As (DBA) name is an official state registration that allows a business to operate under a name different from its legal, registered name. It is often used for branding purposes and provides a way for companies to create distinct identities for different lines of business without forming separate legal entities. A DBA name can also be known as a Fictitious Business Name, assumed name, or trade name.

A DBA name is a valuable tool for businesses looking to operate under a name other than the legal name they established when starting the company. Whether for branding purposes, market positioning, or simplicity, filing a DBA allows businesses to maintain their legal identity while using a more market-friendly and adaptable name. Understanding the filing process, state and local variations, and the benefits of using a DBA can help business owners effectively utilize this option to enhance their business operations.

• Alternate Name: A DBA is an alternate name that a business uses instead of its legal name.
• Legal Requirement: Businesses must file a DBA with local or state authorities to legally use a different name. They can only begin utilizing a DBA if they go through the proper channels, or they can be fined.
• Public Disclosure: Filing a DBA ensures the public knows who owns the business operating under the new name, increasing consumer transparency.
• Flexibility: Allows businesses to create unique brand identities and growth without creating new legal entities.
• Varies by Jurisdiction: Like starting a business, the requirements for filing a DBA can vary by state and local jurisdiction.
• Common Uses: Commonly used by sole proprietors, partnerships, and corporations for marketing and branding purposes. They are especially popular in industries like retail, hospitality, and professional services.

Components of a DBA Filing

When filing for a DBA, businesses typically need to provide the following information:

• Proposed DBA Name: The chosen alternate business name. This name cannot end with things like "Inc., "LLC," etc., because it would incorrectly imply that this new name is an independent business entity when it is not.
• Legal Business Name: The official registered name of the business entity.
• Business Address: The physical address where the business operates.
• Owner Information: Names and addresses of the business owners.
• Business Nature: A brief description of the type of business activities, which can be broad.

This information likely already exists from when registering the business originally.

DBA Filing Process

The process is relatively simple and can often be handled internally at a business. If a registered agent was utilized when establishing the company, that person or service may be able to file this information as well:

1. Name Search: Ensuring the desired DBA name, like any other business name, is not already used by another business to avoid confusion. States usually have an online database to verify claimed names.
2. Form Completion: Complete the required forms available from the local county clerk's or state government's website. To begin, we recommend doing a quick Google search of your state's Secretary of State website.
3. Submission: Submit the forms and the required filing fee to the appropriate governmental office. NerdWallet advises anticipating a $10 to $100 fee, so luckily, it is a relatively minor expense. You may also have to submit a document of Good Standing provided by the current state(s) of business.
4. Publication: In some jurisdictions, the business must publish the DBA in a notice for a specified period to inform the public, like an ad in a local newspaper. This would likely be more common in smaller jurisdictions than large metropolises like New York City or Los Angeles.

Importance & Use of a DBA

• Branding: Allows businesses to create a distinct brand identity separate from the legal name. If a company has a complex or hard-to-spell name, DBAs can simplify that for the public, making it easier to find them online or otherwise.
• Growth: DBA names allow businesses to expand into more product and service lines with unique branding tailored to their market segment, which can help streamline growth domestically and beyond.
• Transparency: Ensures transparency and informs the public about the true owner of the business. This protects the public from patronizing businesses with poor reputations that might use DBAs for more dishonest purposes.
• Privacy: Particularly for sole proprietors or non-formal business entities, DBAs can protect personal information that is otherwise utilized to register the business. For example, a sole proprietor named John Doe wants to open a bakery called "John's Sweet Treats." Instead of operating under his legal name on file as the business, he files a DBA to do business as "John's Sweet Treats."
• Legal Compliance: Helps businesses comply with state and local regulations regarding business operations under a different name, streamlining record keeping.
• Franchises: While franchises usually register as LLCs or corporations under their owner, they're likely to also register a DBA so that their customers know they're connected to that franchise. For example, if Babette opens a McDonald's in her local town, she will register for the DBA name "McDonald's," which differs from her personal LLC name.

State and Local Variations

Requirements for filing a DBA can vary widely by state and local jurisdiction. Some areas may have specific publication requirements, while others may have different forms and fees. It's crucial for business owners to check the particular requirements in their area. Start by searching for your local Secretary of State's office, or utilize this portal as a jumping-off point to get you to the correct channel.

Tips when Utilizing a DBA Name

• Ensure Uniqueness: Conduct a thorough name search to avoid legal issues or confusion with other businesses.
• Maintain Records: Keep a copy of all DBA filings and renewals for your records.
• Renewal Requirements: To keep a DBA active, be aware of renewal requirements in your jurisdiction. Mark those requirements and dates in an important spot with other business deadlines.