What Is a DBA (Doing Business As)?
A DBA, short for "Doing Business As," is a name a business uses that is different from its legal, registered name. It allows a company to operate under a trade name without creating a new legal entity. For example, if "John Smith Enterprises, LLC" wants to open a store called "Smith's Electronics," they would register a DBA for the store's name. This helps businesses create a brand identity while maintaining legal and financial connections to the original entity.
Depending upon the jurisdiction, you will have to file your "fictitious name", "dba" ("doing business as"), "assumed name" or "trade name" (check your state to see what term it uses) with the Secretary of State or County clerk. After performing a search to ensure that the name is not being used, you submit a simple form with its applicable fee (generally nominal). A minority of states require you to publish a notice of your name with a local newspaper. One important thing to remember, your registered name has an expiration date, and so be sure to renew your name or else face losing the rights to the name.
Why Your Business Might Need a DBA
A DBA allows your business to operate under a different name without creating a new legal entity. This can be helpful if you want to expand into new markets, create a separate brand, or run multiple businesses under one legal structure. It also helps sole proprietors maintain privacy by using a business name instead of their personal name. Registering a DBA is often required by law if you're operating under a name different from your legal business name, making it an essential step for branding and compliance.
How to File for a DBA
Filing for a DBA varies by state but generally involves the following steps:
- Choose a unique name that complies with state guidelines.
- Conduct a name search to ensure it's not already in use.
- Complete the required paperwork, which may include a DBA application form.
- Submit the paperwork and pay the filing fee to the appropriate state or county office.
- Publish a notice in a local newspaper, if required by local laws.
Benefits of a DBA for Your Business
A DBA allows your business to operate under a unique name, enhancing brand identity without the need to create a new legal entity. It offers flexibility for expanding into different markets or launching new product lines. Additionally, it helps sole proprietors maintain privacy and professionalism by using a business name instead of their personal name in public dealings.
What Type of Businesses Need a DBA?
There are many reasons why a business may want to file a DBA. For sole proprietors and partnerships, the legal name of their business is their personal name (for partnerships, it is generally the last names of the partners). For those who do not want to use their personal name as their business name, a dba may be of some value. Although the legal name of the business is still under the owner's personal name, the business being conducted can be under a dba (i.e. advertising, branding, mailings, etc.).
Many states require a business to register their assumed or fictitious name with the state or local government to legally conduct business under that name. For the few states that do not require registration, it is still advantageous to register the assumed or fictitious name with the local government to give some (albeit little) legal protection to prevent others from using the name. Also, filing your DBA may allow you to open a business bank account under the business name.
For franchise owners, a DBA may be necessary to ensure that your business can be conducted under the franchise name.
For corporations or Limited Liability Companies that want to conduct multiple businesses under different names or prefer using a different business name rather than the corporation or LLC name, they will have to file a DBA.
DBAs and Legal Considerations: Trademark and Compliance Issues
Registering for a DBA does not give you full trademark protection and does not necessarily protect you from any liability for using your business name. Just because you register your DBA with the government does not prevent other businesses from using your business name. Most jurisdictions do not allow the registration of two of the same fictitious names, however, some jurisdiction do. Furthermore, the fact that you are able to register a DBA does not necessarily mean you are clear from any infringement violation. Unregistered trademarks (trademarks that use the superscript, ™), as the name implies, are not registered with any government agency or office, and these trademarks still retain some property rights. A careless business owner may unintentionally find him or herself stuck in a lengthy lawsuit over the fictitious business name they thought was okay. To avoid this, careful research on whether your business name is being used in your geographic area (and beyond) should be made.
Once you are satisfied that your fictitious business name does not infringe upon anybody's rights, you may consider taking the next to completely protect your business name, registering your name as a trademark with the state or with the federal government (if possible).
How Long Does It Take to Process a DBA?
The processing time for a DBA varies by state and county, typically taking between one to four weeks. Some states offer expedited processing for an additional fee, allowing faster approval of your business name.
Frequently Asked Questions
Do I Need a DBA for My Business?
You need a DBA if your business operates under a name different from its legal name. This is common for sole proprietors or partnerships wanting a more professional or brand-focused name. It's also useful for LLCs and corporations expanding into new markets or launching new products under a separate name without forming a new entity.
How Long Is a DBA Valid?
The validity of a DBA varies by state but generally lasts between one to five years. You must renew it before expiration to maintain your rights to use the name. Some states require periodic updates or renewals, so it's important to check local regulations to avoid losing your DBA registration.
Is a DBA the Same as a Trademark?
No, a DBA is not the same as a trademark. A DBA allows you to operate under a different business name, but it doesn't provide legal protection for that name. A trademark offers exclusive rights and protection against unauthorized use of your brand name, logo, or slogan. Registering a trademark is a separate legal process.
Can I Change My DBA Name After Registration?
Yes, you can change your DBA name after registration, but the process varies by state. It typically involves filing an amendment or registering a new DBA while canceling the old one. You may also need to update your business licenses, bank accounts, and marketing materials to reflect the new name.
