Quick Note: Before you get started, we highly recommend brushing up on the basics of what it means to have a DBA and what you need to know before filing. Seasoned attorney Hillary Johns of Access Lawyers Group wrote a savvy breakdown of the advantages, disadvantages and resources at your disposal.
The term DBA stands for “Doing Business As”. That is, businesses, usually run by individuals often choose to operate their business under another name to fit the needs of their particular brand or business.
An example would be Mr. Jones who has his own insurance company which he intends to call “One Stop Insurance.” In this case Mr. Jones would register his human name, Mr. Jones, doing business as One Stop Insurance. This way his customers and clients would be doing business with the company, not specifically or directly with him.
During the registration of any business entity, if the brand name chosen is different from individual human names, then a DBA, or Doing Business As name (sometimes referred to as a Fictitious or Trade Name) must be registered with the state for the public record. The legal intention is to ensure all businesses are accountable both to the taxing authorities and to consumers. In fact, DBA designation was created as a means of further protecting consumers, with the idea being to help stop shady people from trying to get away with things by doing them under another (non-registered) name.
This is why most jurisdictions require the public be notified, often through local print newspapers.
When you form a business entity, the legal name of the business by default goes to the human name or entity that owns the business. And hey, as you’ll see below there are surprisingly a fair amount of situations where a brand would choose to conduct business under a different name.
While not all states require the registering of fictitious business names or DBAs, it’s generally a good idea to register anyway to keep a clean record, prevent future issues, and so that taxing authorities are clear about your dealings.
Right, let’s dig into four advantages which will help explain why someone or a brand would choose to file under a different name.
Okay, nothing is all peaches and cream. There are a couple downsides to DBA, but they weren’t designed to be perfect or ideal for everyone interested in filing one. Be sure to consult with a lawyer licensed in your state before making a business entity selection and to ‘do your homework’ about your options before choosing which business entity is best for you professional needs and goals.
A DBA is appropriate for pretty much any recognized or registered business entity under the law, but the DBA choice for a business entity tends to be more attractive for small business owners. These are just a few examples in which DBAs are regularly used for business designations.
This part’s easy because there are only a certain amount of “right times” to chat about. Let’s see:
Absolutely, Startup Savant has a TON to offer just about anyone interested in learning more about the process and getting help from trusted providers.
This content on Filing a DBA is not a legal document or legal advice. It is for informational purposes only and the information is subject to change over time. For specific questions and concerns regarding how to file a DBA, please consult an accredited attorney or a qualified professional.