Starting a business is an exciting journey filled with new terms and decisions that can sometimes feel overwhelming. One of the questions you may come across early on is whether you need to file a “DBA” or “Doing Business As” name. If you’re new to the world of business, you’re probably wondering what exactly a DBA is and whether it’s something you need. In this blog post, we’ll break it all down in plain language so you can make an informed decision.

What is a DBA (Doing Business As) Name?

A DBA, also known as a “fictitious name,” “assumed name,” or “trade name,” is a name under which a business operates that is different from the owner’s personal name or the official legal name of the business. Essentially, it’s like a business nickname that your company uses when doing business with the public.

For example, let’s say your name is Jane Smith, and you want to start a coffee shop. Instead of calling it “Jane Smith’s Coffee Shop,” you might want to name it something catchier like “Perk Up Café.” In this case, “Perk Up Café” is your DBA.

Do I Need a DBA?

Whether or not you need a DBA depends on several factors, including how you want to present your business and the type of legal structure you choose for your company. Below, we’ll go over the most common situations in which filing a DBA might be necessary or beneficial.

1. If You Are a Sole Proprietor or Partnership

If you’re running a sole proprietorship (a business owned by one person) or a partnership (a business owned by two or more people), you are legally required to operate your business under your personal name(s). That means if you don’t file a DBA, your business will be named after you. For example, if your name is John Doe and you run a landscaping business, your business will be called “John Doe” unless you file for a DBA to call it something else like “Green Thumb Landscaping.”

If you want to give your business a unique, professional, or creative name that’s different from your personal name, you’ll need to file a DBA. Most sole proprietors and partnerships opt for a DBA because it helps their business stand out and sound more credible to customers.

2. If You Own a Corporation or LLC

Corporations and Limited Liability Companies (LLCs) are required to operate under their official, registered business name. This is the name you filed with the state when you formed your business. For example, if you registered “Smith Holdings LLC,” that’s the name of your company.

But what if you want to branch out and operate under a different name? For example, if Smith Holdings LLC wants to open a restaurant called “Jane’s Bistro,” you would need to file a DBA to use “Jane’s Bistro” instead of the official name of the LLC. This is especially useful if you plan to run multiple businesses under one legal entity.

Benefits of Filing a DBA

Now that you understand the basics, let’s look at some of the main benefits of filing a DBA:

  • Branding Flexibility: A DBA allows you to create a catchy or descriptive business name that reflects your brand and makes your business more recognizable. A name like “Smith Consulting Services” sounds more professional than “John Smith.”
  • Legal Compliance: If you’re using any name other than your personal name or the legal name of your LLC/Corporation, filing a DBA is required by law in most states. It also helps ensure transparency for your customers, so they know who is behind the business.
  • Multiple Business Names: If you own a Corporation or LLC, a DBA allows you to operate multiple businesses without having to form separate legal entities for each one. For example, you could own “Smith Enterprises LLC” and have DBAs for “Smith’s Auto Repair” and “Smith’s Cleaning Service” under that same LLC.
  • Banking and Payments: Many banks require a DBA to open a business bank account in your company’s trade name. This makes it easier to accept checks and payments under your business name rather than your personal name.

When You Don’t Need a DBA

There are also situations when a DBA may not be necessary. For example:

  • Using Your Legal Name: If you’re operating a sole proprietorship and don’t mind using your full legal name as your business name, you don’t need a DBA.
  • If Your LLC or Corporation Name is Sufficient: If you’re happy with your LLC or Corporation’s legal name, there’s no need to file a DBA. Some business owners stick with their official name, especially if it already reflects what their business does.

How to File a DBA

Filing for a DBA is typically done at the state or county level, depending on where your business is located. Here’s a general overview of how the process works:

  1. Check Name Availability: Before filing, make sure the name you want isn’t already in use. Most states provide an online tool to check the availability of business names.
  2. Fill Out the Form: You’ll need to complete a DBA registration form, which is usually available through your state or county’s website.
  3. Pay the Fee: Filing a DBA usually requires a small fee, which can range from $10 to $100 depending on your location.
  4. Publish a Notice (If Required): Some states or counties require you to publish a notice in a local newspaper announcing your new DBA name.

Final Thoughts

Filing a DBA can be a smart and simple way to enhance your business’s identity, especially if you’re looking to operate under a name that reflects your brand or service. It’s an essential step for many small business owners, particularly sole proprietors and partnerships, to establish credibility and legal transparency. Make sure to check your state or county’s specific requirements and consider consulting a legal professional if you’re unsure whether a DBA is right for your business.

Starting your own business is a big step, and choosing the right name is a major part of building a successful brand. So is choosing the right legal partner. Give us a call or use our chat to set up your initial free consultation!