7: What is a DBA?

Doing Business As: Adopting a business name

Doing business As (DBA) filing is an official and public way to register a business name with either the state or local jurisdiction, such as a county. A DBA name is also called an assumed name, fictitious business name or trade name.

A DBA name is typically used when you want to use multiple names for one business, or if you are a sole proprietor wanting to be recognized as a name that is not your legal name. For example, Business Filings Incorporated is our legal name, and we have a DBA of BizFilings.

Why a DBA name is important

DBAs allow sole proprietorships (Links to an external site.) and general partnerships (Links to an external site.) to conduct business under a name other than the owner’s or owners’ personal name(s). For C corporations (Links to an external site.), S corporations (Links to an external site.), limited liability companies (LLCs) (Links to an external site.), limited partnerships (LPs) (Links to an external site.), limited liability partnerships (LLPs) (Links to an external site.) and nonprofit corporations (Links to an external site.), filing a DBA allows them to transact business using a name other than the official company name that is included in the incorporation documents.

Once the DBA filing is approved, the business can use the name as its official business name and:

  • Open a business bank account
  • Create stationery or business cards using the DBA name
  • Develop advertisements and/or list the company in directories
  • Undertake transactions on behalf of the company

Common reasons for DBA Filing

There are a number of reasons why business owners choose to file a Doing Business As, and these reasons may vary by business type. Common reasons include:

  • To transact business under a name other than the official name of the company or the sole proprietorship. A DBA name allows a sole proprietor, corporation, or LLC to name the business something other than the legal name, which in the case of a sole proprietor is the name of the individual.
  • Open a business bank account. Banks typically require sole proprietorships and general partnerships to have a DBA before opening a business bank account.
  • Additional business credibility. Having a DBA can lend additional credibility for sole proprietorships and general partnerships.
  • New name for new business activity. Often a DBA filing is made when a company wishes to enter a new line of business or to market a new product or service.
  • Domain name as Doing Business As. A DBA name can be filed in order for a company to transact business under the company’s domain name.
  • Public notification. A DBA filing notifies other businesses that the name is in use, as the DBA name becomes part of the public record.

Note: DBA filings for an existing entity can impact business registrations.
A common misconception is that you do not need to update existing registrations if you file for a DBA. Creating a DBA for an existing entity may require changes to payroll, sales tax, and other types of registrations. 

Key Benefits of DBA

There are no limits to the number of DBA names a business can register. Having multiple DBAs can allow your company to effectively run separate businesses under one legal entity, as long as you stay within any limits posed by your business purpose (if incorporated).
what-is-dba-when-to-file-one-for-your-business (Links to an external site.)

Doing Business As: Keep in Mind

For sole proprietorships and general partnerships, filing a DBA does not provide personal asset protection to the owner(s). Incorporating a company (Links to an external site.) is necessary to protect personal assets from the debts and liabilities of a business.
the-benefits-of-business-incorporation