What is a DBA? Your Guide to "Doing Business As" Names
So you want to start "Sarah's Sweet Treats" but your legal name is Sarah Johnson, and you're operating as a sole proprietor. How do you make that work legally? Enter the DBA, your ticket to doing business under a name that's not your legal name.
Let's break down what a DBA (doing business as) actually is and whether you need one for your business.
What Does DBA Stand For?
DBA stands for "Doing Business As." It's also called a fictitious name, assumed name, or trade name depending on where you live. But they all mean the same thing: you're doing business under a name that's different from your legal name (or your business's legal name).
Think of it as a business nickname that's officially recognized by the government.
How Does a DBA Work?
Here's the deal: every business needs a legal name. For sole proprietors, that's usually just your personal name. For LLCs and corporations, it's whatever name you file with the state.
Sometimes though, you may want to operate under a different name for marketing or branding reasons. That's where a DBA comes in.
For example:
Legal name: John Smith (sole proprietor)
DBA: "Smith's Home Repair Services"
Or:
Legal name: Johnson Marketing LLC
DBA: "Digital Growth Solutions"
The DBA lets you legally use that business name on contracts, bank accounts, advertising, and everything else.
When Do You Need a DBA?
You're Likely Required to Get One If:
You're a sole proprietor using any name other than your legal name
Your partnership is using a name that doesn't include all partners' last names
Your LLC or corporation wants to operate under a different name
You want to open a business bank account under your business name
You Might Want One Even If Not Required:
Your legal name doesn't describe what you do
You want a more professional or memorable business name
You're planning to expand and want a broader name
Your personal name is hard to spell or remember
When You DON'T Need a DBA
You can consider skipping the DBA if:
You're operating under your exact legal name (like "Sarah Johnson" doing freelance work as "Sarah Johnson")
Your LLC or corporation is operating under its registered name
You're just testing a business idea and not worried about the name yet
Be sure to speak with an attorney before fully skipping this. It’s very rare that someone would not use a DBA, at the very least.
Real-World Examples
Example 1:
The Freelancer Mike Rodriguez does freelance web design. He could operate as "Mike Rodriguez" (no DBA needed) or register a DBA for "Rodriguez Web Solutions" to sound more professional.
Example 2:
The Partnership Sarah and Tom start a bakery together. Their legal partnership name might be "Sarah Smith and Tom Jones Partnership," but they want to operate as "Sweet Dreams Bakery" … they'd need a DBA.
Example 3:
The LLC "Johnson Consulting LLC" wants to launch a new service line and market it as "Leadership Solutions" … they'd register a DBA for the new name.
How to Register a DBA
The process varies by state, but here's the typical flow:
Check Name Availability
Make sure no one else is using your desired name. Most states have online databases you can search.
File the Paperwork
Usually called a "Fictitious Name Statement" or "Assumed Name Certificate." You'll file this with:
Your county clerk's office, or
Your state's Secretary of State office
Pay the Fee
Typically ranges from $10 to $100 depending on your location.
Publish a Notice (Sometimes)
Some states require you to publish your DBA in a local newspaper for a certain period. Yes, really. Hey, I don’t make the rules!
Renew When Required
DBAs usually expire every 5 years and need to be renewed.
DBA vs. Other Business Names
DBA vs. Trademark
DBA: Lets you legally use a name in your area
Trademark: Protects your brand name nationwide (and costs more though can be very useful)
DBA vs. LLC Name
DBA: Just a name you can use; doesn't change your business structure
LLC Name: Your actual legal business entity name
DBA vs. Domain Name
DBA: Legal permission to use a business name
Domain Name: Your website address (totally separate process)
The Pros and Cons
Pros:
Professional image: "Smith's Consulting" sounds better than "John Smith"
Marketing flexibility: You can brand however you want
Multiple names: You can have multiple DBAs for different business lines
Bank accounts: Required for business banking under your business name
Relatively cheap: Usually under $100 to register
Cons:
Extra paperwork: One more thing to file and maintain
Renewal requirements: Most expire and need renewal
Publication costs: Some states require expensive newspaper publication
No legal protection: Doesn't protect your name like a trademark would
Common DBA Mistakes to Avoid
1. Not Checking Availability Thoroughly
Just because the name isn't registered as a DBA doesn't mean it's not trademarked or being used by someone else.
2. Forgetting to Renew
DBAs expire. Set a calendar reminder or you might lose the right to use your business name.
3. Thinking a DBA Changes Your Business Structure
A DBA is just a name – you're still a sole proprietor, LLC, or whatever you were before.
4. Not Using the DBA Consistently
Once you register it, actually use it on all your business materials, contracts, and marketing.
DBA and Taxes
Here's something important: a DBA doesn't change how you file taxes at all. You're still the same business entity, just with a different name.
For sole proprietors: You'll still file Schedule C with your personal tax return, but you can use your DBA name on business documents.
For LLCs/Corporations: You still file the same business tax returns under your legal entity name.
Banking with a DBA
Most banks require a DBA registration before they'll let you open a business account under your business name. You'll typically need:
Your DBA certificate
Your EIN (if you have one)
Your driver's license
Some cash for the initial deposit
Multiple DBAs
Here's something cool: you can usually register multiple DBAs if you have different business lines.
For example:
Legal name: Sarah Johnson
DBA #1: "Johnson Photography"
DBA #2: "Sarah's Design Studio"
Just remember, each DBA usually requires its own registration and fee.
The Bottom Line
A DBA is basically a legal way to use a business name that's not your actual legal name. It's simple, relatively cheap, and often necessary if you want to look professional or open a business bank account.
The key is understanding that a DBA is just a name; it doesn't change your business structure, tax situation, or liability protection. It's like getting a stage name for your business.
If you're operating under any name other than your exact legal name, you probably need a DBA. The good news is that it's usually a straightforward process that you can handle yourself without needing a lawyer.
Don't overthink it. If you want to do business under a specific name, just register the DBA and get on with building your business. It's one of those administrative tasks that seems scarier than it actually is.