What is a DBA (Doing Business As)?

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So what exactly is a DBA (Doing Business As)? Also known as an "Assumed Business Name" or a "Fictitious Business Name," a DBA essentially provides the public with the ability to know who the real owner of a business or company is, as a DBA serves as the operating name of the company, rather than the legal name.

The DBA was initially created as a way to further protect consumers, as it was created in order to prevent corrupt business owners from operating under different company names in order to avoid getting into legal trouble.

How Do I Know If I Need A DBA?

There are generally two reasons a business that is operating within the United States would require a DBA:

• Corporations & LLCs: If you have decided that your business is going to become a corporation or an LLC, then you have already been required to register your business name, and you will not need to file a DBA. However, if you create a corporation or an LLC (i.e., Kelly's Consignment), but you want to operate your business under a different name (such as KellysConsignments.com), then you will need to file a DBA in order to operate under this second name. In effect, if there is any variation from your original name, then you will be required to file a new DBA.
• Sole Proprietors: If you are operating your business or company as a sole proprietor (and the company is operating under a name that is different from your own), then you will need to file for a DBA. For instance, if Rick Brown decides to start a company and name it, "Psychologist To Go Services" then he will be required to file a DBA. There are some exceptions in which you will not need to file a DBA, but you should always double-check with a lawyer to make sure. For instance, if your company's name is a combination of your real name and a description of whatever product or service you are providing (i.e., Macy Smith's Fresh Flowers), then you might not need a DBA. This can be rather tricky, though. If you decide to name your company, "Ada's Gourmet Ice Cream," for instance, then you will need to file a DBA because you are not using your full name. Because this can be confusing, its recommended that you check with your County Clerk's office to see if you need to file a DBA.

What Are The Benefits Of Filing A DBA?

There are a number of reasons that you should file a DBA:

• First and foremost, filing a DBA will ensure that you remain in compliance with the law. This alone is extremely important for obvious reasons.
• Filing a DBA is probably the easiest way in which to register your company's name. If you are a sole proprietor, you are responsible for all of your business expenses. Filing a DBA will likely be the least expensive way in which you can create a business or company name without having to form a corporation or an LLC. However, it is important to be aware of the fact that filing a DBA does not protect others from using your name. In order to do this, you will need to get trademark protection.
• If you are a sole proprietor, you will be required to file a DBA in order to open a bank account and receive any payment in the name of your company or business. In fact, most banks will not allow you to open an account without proving that you have already filed a DBA.
• If you are operating as a corporation or an LLC, a DBA will allow you to operate multiple businesses and/or companies under the same corporation name, which means that you do not have to create separate legal entities for each business. This is very useful, as it can help you eliminate expensive costs and time-consuming paperwork, while simultaneously expanding your business.

How Do I File A DBA?

Every county and state will have separate fees, forms, rules, and requirements when it comes to filing a DBA, so it is imperative that you look up your specific state or county to ensure that you are filing the correct documents. The Small Business Administration (SBA) can also be a useful resource, as they outline the various requirements for DBAs according to each state. MyLLC.com provides DBA services for their clients and have experts available to answer any questions you might have.

Bottom Line: Not only will filing a DBA ensure that you remain in good legal standing, it can also help you to expand your business without breaking the bank.