As a business owner, there are a lot of important decisions you must make as you start
your company. One of these decisions includes if you want to file for a DBA, which
stands for “Doing Business As”.
Essentially, a DBA is known as an alias, a trade, fictitious, or assumed name for a
company. You most likely have seen a DBA listed on a legal document like, John Doe
LLC DBA John’s Auto Shop. By using a DBA, entrepreneurs are able to conduct their
business under a name that is not their legal name.
Why Would You be Inclined to Register for a DBA?
One advantage is that it allows you to use a creative name which could help attract
more customers. Not only this, but if you are a sole proprietor or a part of a partnership,
your real name is hidden since the DBA is what will be advertised to your customers.
Therefore, you will have more privacy.
You can also benefit from having a DBA when working with your financial institution. For
example, when you are in need of a small business loan, banks understand that DBAs
are a sign that you mean serious business and that you are not having fun with a hobby.
Understand Requirements are Different by State
If you are interested in registering for a DBA, it is important to know the requirements for
your state as regulations aren’t the same everywhere. Thankfully, registering is a fairly
simple process with little cost.
Some states will require businesses to apply with the Secretary of State, a county clerk
office, or through another state office. There are states that will allow you to file online,
however, some states require that the business owner’s signature be witnessed so you
must register in person. Another way states differ is that your business structure may
determine if you need to file for a DBA.
As you consider filing for a DBA, be sure to check that no other business is using the
name that you want to be called. You should also know that a DBA doesn’t last forever.
Each state has different terms set. It is possible that in some states a DBA will only last
a few years. If this is the case, you will need to renew your DBA when the time comes.
If you have questions regarding the regulations surrounding filing for a DBA in your
location, reach out to your local economic development department in your city or
county. They can advise you on the steps required to be in compliance.
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