What Is a DBA, and Do I Need One?

A DBA is a nickname you use publicly for your business. DBA stands for “doing business as.” DBAs allow business owners to conduct business under a name different from the legal name of their company. Although it’s not necessary to use a DBA, many companies benefit by having one or several DBAs.

What is a DBA?

A DBA is also called a fictitious, assumed or trade name. There are many marketing reasons for using a DBA instead of the full legal name of your business entity. There can also be privacy and administrative advantages to using a DBA. In most states, it’s necessary to register your DBA with the local government before using it for business purposes.

Do I need a DBA?

You only need a DBA when you want to run a business using a name different from the company’s legal name. There are many reasons to do this:

• If your business is a sole proprietorship or partnership, its legal name is the name or names of its owner(s). Using a DBA can provide stronger branding for your products and services: for example, “Joe’s Supreme Pool Cleaning” rather than just “John Joseph Smith.” The DBA also provides some privacy by taking the owners’ names out of the spotlight.
• You may have multiple lines of business that you’d like to brand separately. DBAs are great for this.
• You may want to distinguish your business by its location. For example, if you’re a Subway Sandwich franchisee, you might want to register a different DBA for each one of your stores, such as “Subway of Smithville Towne Center.”
• If you expand your operations to a new state, you may find your DBA already registered there by someone else. So, for example, if the name “Wonderful Waterbeds” is already in use, you could create a new DBA called “Fantastic Flotation Systems” without changing the legal name of your company.
• Many banks won’t open a business bank account without proof of registration of your DBA, corporation or LLC. Business bank accounts may offer more features than consumer accounts, and you will likely need to open a business bank account to apply for a small business loan.

Businesses that don’t need to register a DBA may still benefit from it

If you want to use a DBA, most states require you to register it formally. But even if you are located in one of the 13 states that currently don’t require registration, you may still benefit by registering:

• Banks may still require proof of DBA registration to open a business account under that name, even if the state doesn’t require it.
• Other businesses that see you’ve registered a DBA may be less likely to choose the same name for their business.
• Companies offering DBA registration services typically won’t assist in registering a “copycat” DBA under a name that’s already registered in the same location. This provides you with a little additional brand protection.

Does a DBA offer legal protections?

No. Keep in mind that a DBA is essentially just a nickname for your business. It can be great for marketing but does not provide you with any legal protections.

For legal protection of your brand, you should also get a trademark for the name of your DBA. And for legal protection of your personal assets from business liabilities and creditors, you should choose a business structure such as a corporation, an LLC or a limited partnership, rather than a sole proprietorship or general partnership.

Pros and cons of a DBA

Here’s a closer look at the benefits and limitations of a DBA:

How to get a DBA

If you’d like to use a DBA for your business activities, you should start the registration process as soon as you choose a “doing business as” name. Here are the steps to follow to set up a DBA:

Step 1: Choose a name

Multiple businesses may be allowed to use the same DBA within a state, unless it has also been trademarked. Before choosing a DBA, search the trademark database of the U.S. Patent and Trademark Office. County or city offices do not always check for trademark protections when processing DBA applications, so it’s the business owner’s responsibility to make sure you’re not infringing on another company’s rights.

Also, keep in mind that your DBA name should not misrepresent your company. For example, if your business is not a corporation, the DBA shouldn’t include the abbreviation “Inc.,” as in “John’s Pool Service, Inc.” Some states even have mandatory naming rules. For example, in Massachusetts and California, every DBA for insurance agents must include the word “insurance.”

Step 2: Register the DBA

Once you’ve settled on a name, file a DBA application with the appropriate government agency. The process for registering a DBA varies quite a bit by location. Some accept online applications, while others require paper forms or even notarized documents. Generally all require a registration fee along with the application.

Generally, the quickest way to find the requirements in your state are to search “[your state name] + register dba,” and then find the .gov page run by your state government.

If you are using the DBA to do business in more than one state or municipality that requires registration, you must register the DBA in each location.

Step 3: Declare your DBA

California, Florida, Georgia, Illinois, Minnesota, Nebraska and Pennsylvania require business owners to publicly announce that they’re registering a DBA.

Requirements vary by location, so start by researching the details for your particular region and allow time for this step if required. For example, in California, business owners must post an announcement in a general circulation newspaper that’s distributed in the county where the business operates; it must be posted within 30 days of filing and repeated for four consecutive weeks.