What Is a DBA and When to File One For Your Business

What does DBA mean? Learn about DBA and the process of changing your business name via DBA filing, as well as some reasons small business owners may want to register a DBA for their company.

Starting a new company comes with a host of legal hurdles, including your overall business structure. For instance, you may choose to conduct business as a limited liability company (LLC), partnership, franchise, or sole proprietorship.

In many cases, regulations place certain restrictions on the legal name of your business entity, limiting your ability to build a company with a memorable name and marketable brand. That’s where a “doing business as” (DBA) registration comes in handy.

In this article, we’ll discuss the meaning of DBA and the process of changing your company name via DBA filing, plus some reasons small business owners may want to register a DBA for their company.

What does “doing business as” (DBA) mean?

A DBA (short for “doing business as”) is a fictitious business name or trade name that’s different from the legal name under which a business is licensed. In North America, the common designation for “doing business as” is “DBA” or “d/b/a.” In other countries, “trading as” is more common, with “t/a” the abbreviation.

Some states refer to the paperwork required to register a DBA as a “fictitious name filing” or "fictitious name certificate." To operate under an assumed name, companies must submit an application indicating the DBA name to be used and verify that another business is not already using the name.

Why use a DBA name?

Technically speaking, most businesses are not required to file a DBA in order to operate. However, a DBA name can be useful for a variety of reasons:

• You want to use a better name. If Jane Doe runs a jewelry business as a sole proprietor, she’ll likely want to operate under a more memorable and searchable name that’s related to her industry. A DBA name allows her to do just that.
• You’re expanding. If you’re looking to spin off a unit of your business, introduce a new product that’s unrelated to your current business name, or operate in an area where another well-known business is already using your name, a DBA name can help you make the transition, putting multiple businesses under one legal entity.
• Your bank requires a DBA. Some banks require sole proprietors and partnerships to file a DBA in order to open a business bank account. Having a separate business bank account can unlock business-only perks that help you manage your finances more effectively.
• You’re pivoting your business. If your current line of business isn’t working out, the DBA filing process can help you take your existing business in an entirely new direction—without the need for a separate business entity or new business licenses.
• You want to protect your privacy. Because your business’s legal name is a matter of public record, doing business as a sole proprietor without a trade name can expose your personal name to the world. By registering a DBA name, you can keep your name off official filings and marketing materials, preserving your privacy.

How to choose a DBA name

Best practices for choosing a DBA name are similar to when you’re choosing a name for your business or brand:

• Follow the state’s naming guidelines. Most states prohibit DBA names that include banking or government-related phrases. You’re also not allowed to use “LLC” in your DBA name if your business isn’t structured in that way. Check with your city or county office before filing your name application.
• Make it memorable. Alliteration tends to work well because it’s catchy and memorable. Think of names like “Eli’s Electronics” or “Joni Jeans.” 
• Avoid commonly misspelled words. Your DBA name is what people will recognize you by, so avoid words that are commonly misspelled to help potential customers easily find you online.
• Check it’s not already taken. Check the trademark office, do a domain name search, and confirm that social media handles are available before filing a DBA application. 

Who needs to file a DBA registration?

Some types of businesses must use a DBA name to do business effectively, while other types simply have the option to file a DBA. Here’s what you need to know.

Sole proprietorships

Sole proprietorships are the most common DBA filers. That’s because sole proprietors must register a business under their personal name, which means that without a DBA, their branding options are severely limited.

However, if you are a sole proprietor and use your own name in your legal business name, such as Sue Smith’s Styling Salon, you don’t need to submit a DBA form. You are doing business as yourself—it’s a non-issue.

Partnerships

Like a sole proprietorship, a company with a general partnership business structure is unincorporated, and therefore does not need to register a business entity name with the state. As a result, general partnerships require DBA filing if you want to operate under a fictitious name that’s neither your full legal name nor your partners’ names.

Corporations and LLCs

Unlike sole proprietorships or general partnerships, corporation or limited liability companies (LLCs) don’t need a DBA to operate under an alias, since they’ve already registered a business entity name that’s separate from their personal name as owner. However, if you want to do business under a different name, you have the option to register a DBA just like a sole proprietorship or partnership.

This frequently happens with franchisees, which can’t all operate under the parent company’s or brand’s name. For example, a Delaware Wendy’s franchisee might do business as Brandywine Burgers. 

If a new business unit is formed within a corporation with a slightly different mission or product line, a DBA name could be filed to indicate the different name and the unit’s relationship to the parent company. 

This would be the case if, say, the Veggies R Us corporation decided to spin off its ice cream business, naming it The Cream of the Crop. The Cream of the Crop would need a DBA filing, since the name being used is different from its parent LLC.

When should you file a DBA?

If your business intends to go by an assumed name different from your own legal name, you will need to file DBA forms to make it clear to the state (and your customers) who is responsible for the business and its activities. That is the reasoning behind such forms: making sure customers know the name of the business owner or legal entity behind the company.

Some states require a business owner to renew a DBA name periodically. If you’ve already registered a DBA name, failing to renew it can create serious problems for your brand. For example, if your DBA registration lapses before you can renew, you’ll lose access to the name. If you’ve registered in a state where DBA names don’t have certain legal protections, another business owner could even register as your lapsed DBA name before you get the chance to reclaim it. 

Typically, failing to renew your DBA in time means you’ll need to start the filing process all over again, often costing more to register than it would have to renew. Plus, while your DBA is invalid during that transition period, that could cause disruptions to your business operations, further impacting your finances. 

Where to register a DBA

Most DBA filings are submitted at your county clerk’s office or courthouse. They usually cost anywhere from $25 to $100. Note that you’ll need to file a DBA for every state or city your business operates in. For more information about where to register a DBA for your business, check the SBA website.

When to renew a DBA

Your DBA application isn’t a one-and-done thing. As discussed above, most states require you to renew your DBA and confirm that you’re still using it to trade. This varies from state to state, though the typical renewal period is five years. During your DBA filing process, make sure you get all the most up-to-date information about your state’s registration requirements and renewal period. 

Doing business as (DBA) FAQ

What does “DBA” mean in legal terms?

DBA is an abbreviation for “doing business as.” It’s a fictitious name that a sole proprietor, partnership, or LLC uses in order to trade under a name that’s separate from their official legal name.

Can I add a DBA to my personal bank account?

Most banks allow sole proprietors to add a DBA name to their personal bank account, but only if you’re using that account for business purposes.

Why do companies use DBA?

A DBA informs the public that a business entity is operating under an assumed name that’s different from the legal name of the owner. There are various reasons to use a DBA, including branding and marketing, privacy, and banking purposes.

What is an example of a DBA?

If electrician John Doe owns his business as a sole proprietor, he might use a DBA name to operate as “John Doe Electricians” or “Gold Star Electrical.”

Which is better: a DBA or an LLC?

An LLC is a business structure that separates an owner from their business entity and protects their personal assets from a company’s debts. By contrast, a DBA is a trade name that helps a business with things like brand building, but offers no additional financial protections.

Can I use the same DBA as someone else?

Some states, counties, and cities prohibit two different business entities from operating under the same DBA. But a DBA is not a trademark, and thus does not necessarily prevent you from using another company’s name.