DBA stands for "doing business as" and refers to a name that a business entity uses to conduct business that is different from its legal name. Here are some key points to keep in mind about DBAs:
- A DBA name is also referred to as a "trade name," "assumed name," or "fictitious business name".
- Registering a DBA name is a way to notify the public that a particular person or business entity is conducting business under a name other than its legal name.
- A DBA is not the same as registering a business as a legal entity type, such as an LLC or corporation.
- Sole proprietorships and partnerships may want to consider a DBA because it allows them to create fictitious business names in multiple geographical locations.
- Registering a DBA allows a business to transact business under the fictitious name instead of the owners personal name.
- Banks often require sole proprietorships and partners in general partnerships to have a DBA before they can open a business bank account.
- Filing for a DBA alone does not legally protect a business, but it might be legally required depending on the state, city, or county in which the business operates.
- A DBA can be useful if a business decides to rebrand its registered LLC or corporation and branch out to a new market.
In summary, a DBA is a way for a business entity to conduct business under a name other than its legal name. It can be useful for sole proprietorships, partnerships, and businesses that want to rebrand or operate under a different name.
