What Is a DBA?

Business owners use DBA names to avoid using their legal business names. The type of business determines a company’s legal name at start-up.

If you are a sole proprietor, your personal name is typically your legal business name. If you own a limited liability company or are a member of a corporation, the registered name is the initial business name. Filing a DBA allows you to use a different name in these situations.

Some states call a DBA by other names, such as assumed name, fictitious name, trade name, and registered name certificate.

Every state has its own names and laws concerning DBAs.

You might wonder why an individual would want to use an assumed business name. There are a lot of reasons for using DBA names. The owner of a sole proprietorship may not want to use his or her personal name.

For example, Jane Smith can do business under her own name without a DBA. If Jane Smith wants to use the name “Jane’s Spectacular Cookies” for her small business, she may need to register that name. If you’d like to use a name other than the registered name for your LLC, then you can use a trade name.

Having a DBA means you don’t need to form another business entity if you want to expand your business. You can use the underlying business entity’s tax identification number (tax ID) or employer identification number (EIN) from the Internal Revenue Service (IRS).

The owner of an LLC or corporation may want to branch out under a new name. For example, an LLC that was formed as “Denver Detailing LLC” could also operate with a DBA “Colorado Springs Detailing” if the business wanted to expand into a different territory without forming a separate business entity.

You could be able to open a bank account or sign a contract with your DBA name once you register it.

If you wish to conduct business under a different name, you may have to go through DBA registration.

Small business owners can register the DBA name with the Secretary of State (or County Clerk’s office). Each state’s process is different, so make sure to check your state’s laws. The best starting point is your state’s Secretary of State.

There is a DBA filing fee, which differs from state to state. Most jurisdictions cost $30-$75. Depending on your local laws, you may also have to publish the DBA name in the local newspaper.

An assumed business name, or DBA, does not protect business owners from personal liability. A DBA is not a business structure. So, a DBA name doesn’t offer limited liability protection. This means a sole proprietor who gets a DBA may still lose their personal assets if someone sues the business. Only forming a separate legal entity like an LLC or corporation will keep personal assets safe.

Registering a DBA name also will not stop someone from using that DBA name in another state. Only a federal trademark can do that.