What is a DBA Name?

By Cindy Hill

A DBA, or "doing business as" name, is a fictitious name under which an individual or other business entity -- partnership or corporation -- conducts its business. While some individuals successfully market their personal name as a brand name, most people select a DBA which allows consumers to more easily recognize the product or service they are selling, and to avoid confusion with other businesses. Businesses must comply with the laws of each state in which they do businesses regarding DBA registration.

Marketing

The right public name is an important asset to any business. A trade name distinguishes the products or services of one business from all others. If chosen correctly, the name will stick in consumers' heads and create positive associations with the product or service offered. A good DBA name will look good in your marketing materials, be easy to pronounce and not have any potentially offensive connotations. A DBA is not just a name under which a sole proprietor, small business or larger corporation markets a brand of products or services, it forms the framework of the business's identity.

Avoiding Business Confusion

An important function of a DBA is to distinguish your business from all others, and in so doing, avoid implying your business is associated with other organizations or individuals with whom you have no legal connection. Choosing a name too similar to that of another business may not only confuse customers and lose you market share, it may also be a trademark violation. A major legal requirement to conduct business in each state is that every business operate under a name not currently in use by, or confusingly similar to, another business operating in the state. Searching the Internet, county and state databases of registered trade names, and federal trademark database helps ensure a chosen DBA is available and not unlawfully similar to the name of another business.

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Public Notice

Registration of a DBA notifies the public of the responsible party behind the name. When registering a DBA, you will likely have to name a registered agent, who resides in the state, to serve as the representative for the business. This allows members of the public or other businesses to locate the in-state agent of the DBA business to direct correspondence or legal documents.

Registration

Requirements for registering a DBA vary from state to state, but most states mandate registration with either the Secretary of State's office or local county registrar. Many states allow registration online, though the process and fees may differ depending on whether you are registering as an in-state or out-of-state DBA business. Changing the business name, address or registered agent usually requires prompt filing of an amendment to your DBA registration; this keeps state tax and business agencies as well as the public accurately informed of the business's contact information.

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How Important Is a DBA?
 

References

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Difference Between an Individual & a DBA

An individual may operate an unincorporated business as a sole proprietor either under her own name or an assumed trade name, which is called a DBA or "doing business as" name. Business partnerships and corporations may also choose to conduct business under a fictitious DBA name to distinguish their business from others or build the basis for a better marketing platform.

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A limited liability company, or LLC, is formed under the laws of a state by filing articles of organization with a state business registration agency, usually the secretary of state's office. The articles of organization provide notice to the public that the company exists, that it will be operating as a business entity that is separate from its owners and that it can be contacted through a registered agent. The articles are a public document. All states maintain a database that is accessible to anyone over the Internet where this basic information about an LLC can be viewed.

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