DBA/Assumed Business Name

9/24/2023

Trade Name vs. Legal Name

DBA stands for "doing business as." A DBA is a trade name, an official name, under which a business is legally allowed to operate, that differs from the business' registered legal name. Also known as an "assumed business name," DBAs are a means by which a company can operate under different brands as one company.

Why File a DBA

There are many reasons a business might choose to file a DBA. DBAs can be very useful for certain types of businesses. A magazine publishing business, for example, may wish to sign contracts with advertisers under the titles of their publications, but manage funds under a single operating account. Registering a DBA for each title would allow for that.

Other reasons to use a trade name:

• In the case of a sole proprietorship, a DBA may be required when setting up an operating account.
• A business may choose to register their website domain name as a DBA.
• A DBA may be be more distinctive, memorable, and easier to spell than a business' legal name.
• A DBA may be useful when expanding business operations into a new market.
• A business with multiple locations or sub-operations, may choose to run each under assumed business names.
• Registering a trade name tells other businesses that the name is in use.

Limitations of a DBA

Registering a DBA is not registering a business. A DBA filing comes after business registration. A DBA registerd without first filing a business registration will be treated as a sole proprietorship. Sole proprietorships lack the liabilty protections afforded LLCs, and other business entities.

A DBA is also not a trademark. Trademark is a separate filing through United States Patent and Trademark Office (USPTO).

Like with naming your business, a thorough business name lookup should be performed prior to registering a DBA. Conveniently, the links on the linked page are also the state pages where you can register your DBA, file your or update your business registration information, etc.