Are you an entrepreneur running a company under a name different than your own and not formed as an entity? Have you registered to p operate as a fictitious business? In order to legally run under a name that is not yours, a DBA must be used.
.What is a DBA?
DBA stands for “Doing Business As.” It is an alias or fictitious name used by a company to conduct business under a name different from its legal name. Registering a DBA allows you to comply with state laws and provides advantages beyond legalities, such as being seen as more professional than operating under your personal name.
Why Register for a DBA?
Companies that use trade, assumed, or fictitious names may need to register a DBA to comply with state laws and regulations. Registering a DBA also offers flexibility for expanding or changing products and services without starting a new business.
Businesses That Need to Register a DBA
The requirement to register a DBA depends on the location and type of business. Sole proprietorships and general partnerships often need to file for a DBA to establish ownership and operate under a different name. Franchise businesses may choose to file for a DBA to clarify their independent ownership. Corporations and limited liability companies (LLCs) may also require a DBA when creating a subsidiary.
Advantages of a DBA
Using a DBA provides several advantages for business owners:
- Operating Under a Different Name: A DBA allows businesses to change their public-facing name easily, helping them find the right fit for their brand.
- Business Expansion: DBAs enable owners to expand into new products or services while maintaining separate identities for each business line.
- Business Banking: Having a DBA can facilitate the process of obtaining an Employer Identification Number (EIN) required for opening a business bank account and applying for small business loans.
How to Register a DBA?
The process of registering a DBA varies among states, but it is generally straightforward and may involve minimal costs. You should consider the following steps:
- Research: Ensure the desired name is not already in use by another business, and avoid using certain terms like LLC, Corp., or Inc. in the DBA name.
- Application: Depending on the state, businesses may need to apply to the Secretary of State, county clerk offices, or other relevant state agencies. Some states allow online filing, while others may require in-person visits or notarization.
- Business Structure: Check if your business structure exempts you from filing for a DBA.
- Compliance and Renewal: Keep track of the DBA’s expiration date, usually set by the state, and renew it accordingly. Obtain any necessary certificates of good standing from the appropriate government agencies.
If you would like to operate under a DBA for your business, be sure to check the regulations in your location and complete all the necessary documentation to be in compliance.
What is a DBA? | Register a DBA | Small Biz Ahead (thehartford.com)
