What is a DBA? Everything you need to know

Short for “doing business as,” a DBA is a legal alias for your company. It is often used to name a new product line or brand, adopt an acquired business’ name, set up shop in a different state or open a bank account before official business formation. In this article, we go over what a DBA is, how to determine whether you need one, the pros and cons of having a DBA and how to register one. 

What does DBA mean?

A DBA stands for “doing business as.” Also known as a fictitious name, assumed name or trade name, it is a nickname for your business, explains Rachel Brenke, a business consultant and intellectual property lawyer in Fredericksburg, Virginia.

“It doesn’t create a separate legal entity, but provides a different name for the public to associate with your business,” says Brenke. 

When do you need a DBA for your business? 

You need to file a DBA whenever you want to use a different business name from the one you used to legally form your business. A DBA doesn’t offer the same legal protections as forming a legal entity, such as an LLC, for your company, However, it can be a tool for rebranding your company, expanding to a state where your business name is already in use or offering new services or products that aren’t associated with your registered name.

Here’s when to use a DBA according to the business type:

DBAs for LLCs, S corps and C corps

For LLCs, S corps and C corp businesses, a DBA may be useful if your company wants to conduct business under a different name than the one registered, says Brenke. For instance, you may have used your own name to form your LLC (i.e., Sarah Smith Writes) but would like a name that better describes your current products or services (Marketing Toolkit LLC, for example). You can file a DBA with a name that achieves this goal.

Along the same lines, if you want to create a website for your company and your business before forming your LLC, S corp or C corp, you can file for a DBA and create a website and branding that align with your legal nickname. Already-built branding can help the success of your LLC, S corp or C corp once it formally launches.

Other instances in which LLCs, S corps and C corps use DBAs include when they are: 

• Launching a new product line. 
• Setting up shop in another state in which their legal business name is already being used. 
• Rebranding to reflect a new business direction. 

DBA for sole proprietorships and partnerships

If your business is structured as a sole proprietorship, a DBA lets you use a name other than your personal name. Further, if you don’t want the public to know you’re running a one-person business or don’t want others to know the names of your business partners, a legal alias can help.

For instance, the name of a law firm might include the last names and first initials of each partner. A DBA offers a veil of identity protection by enabling the firm to operate under a different name. This also can help position its partnership for a rebranding if they’re expanding their service offerings. 

DBA for franchises

For franchises, a DBA allows the franchisee to use the franchiser’s brand name, Brenke points out. “At the same time, the legal name of the business remains under the franchisee’s established entity,” she says. 

Here’s how it works: When franchisees start businesses in your franchise’s name, they set up their own LLCs. Each LLC initially has a name that’s different from your company’s name. To do business under your name for their respective franchise locations, each franchisee would need to file for a DBA for your business name. 

DBA pros and cons

Pros:

• Can offer an updated name that better describes evolving products or services. 
• Enables operating multiple businesses under one entity.
• Protects privacy of business partners.

Cons:

• Offers no business liability protection. 
• Requires periodic renewal, often for a fee. 
• Provides little exclusivity of use.

Advantages of a DBA

Many advantages come with a DBA. First, for many reasons, businesses use DBAs to designate a name that more accurately represents their businesses. 

For example, you can operate under a name that is more marketing-friendly, represents a new product line or better describes evolving business activities than your legal business name. If you operate a sole proprietorship or your LLC includes your personal name, an alternative DBA name adds identity protection while also perhaps better reflecting your products or services.

By opting for a DBA, you also don’t need to set up a separate business entity for each of your businesses or brands, a process that can be time-consuming and costly. Instead, you can operate several businesses under one company. For example, you may assign a DBA to each new brand in your portfolio.

Disadvantages of a DBA

In some circumstances, however, it is a good idea to forgo the convenience of a DBA and either trademark a name or form a new business entity.

For example, a DBA doesn’t protect your personal assets. In the event you’re sued, your personal assets aren’t separated from your business assets like they would be if you form an LLC or another business structure. For this reason, sole proprietorships might enjoy more protection if they choose an LLC rather than a DBA.

“A misunderstanding [about DBAs] is thinking that having a DBA provides legal protection,” says Brenke. “Unfortunately, it doesn’t provide any shield against liabilities or debts of the business.”

Another downside of a DBA is that it doesn’t legally protect your name to be used exclusively by you. A company in another county or state can use the same name. If you want legal protections nationwide, you must trademark your company name. If you’d like legal name protection within your state, form a new LLC or another business structure.

For assistance forming an LLC or trademarking your name, read our best LLC services guide. 

How to register a DBA in 7 steps

The steps to register a DBA depend on the state where you’re filing, but here is the general process: 

1. Choose your location

In most cases, you should file a DBA in the state or county where you do business. However, you are allowed to file your DBA in another location if it makes sense to do so. For example, you may file in another state if you plan to expand your business to a state other than where you normally operate, such as when you are opening a new franchise location. 

2. Check name availability

Before you file a DBA form, check whether the name is available for use. However, unlike naming an LLC or other formal business structure, multiple companies within one state can use the same DBA and most states don’t impose word restrictions for DBAs, allowing more flexibility in choosing your name. 

Still, you cannot use a name that is trademarked since a trademarked name is federally protected from infringement. The U.S. Patent and Trademark Office offers a tool that lets you see whether a chosen DBA is already trademarked. 

In addition, for effective branding purposes, it is recommended that your DBA be different from other company names being used in the state where you do business. One exception is if you bought a franchised business and need to do business under the name of the original franchise. 

3. Find the appropriate form 

Do an online search to find out where to file a DBA (or assumed name) within your state. Depending on where your company is located, you might need to file a DBA at the county or state level through one of these offices:

• Secretary of state. 
• Department of state. 
• Department of revenue or other state tax entity. 
• County clerk. 
• Another office or state agency.

A DBA filing form also goes by different names in different states. In the state of New York, for example, it’s known as a “certificate of assumed name.” In California, it’s called a “fictitious business name statement.”

Finally, some states provide different DBA forms for different business structures. For example, in Virginia, if you have a LLC, S corp, C corp or other formal business structure, you must fill out a Certificate of Assumed or Fictitious Name – Business Conducted by Entity form. If, however, you are an individual filing for a DBA, you must fill out Virginia’s Certificate of Assumed or Fictitious Name – Business Conducted by an Individual form. 

4. Submit the form and associated fee

While each DBA filing form might ask for slightly different information, you typically can expect to provide the following:

• The legal name of your business. 
• The DBA name. 
• Your employer identification number (EIN) or state ID number. 
• The street address of your principal business.
• The state where your business was formed. 
• The counties where you plan to do business. 
• The name and address of the person filing the DBA.
• The signature of a responsible party representing your business. This might be you, a member of your LLC or a business partner.

Where you need to file your DBA might be different depending on your business type. For instance, if you’re filing in Tennessee and you operate a corporation, limited partnership or LLC, you file with the secretary of state. In Michigan, you must file an assumed name form with the Department of Licensing and Regulatory Affairs, while in Texas, you must file with the county clerk in each county where the name will be used or with the secretary of state, depending on the business type.

In many states, you can submit a DBA filing online. When you do, you’ll receive confirmation that you submitted your form and it has been accepted. Some states also let you mail your form. In turn, you receive a hard copy of your DBA certificate. 

When you file, you also must pay filing fees. This cost varies by state. For example, filing for a DBA in Virginia costs $10, while filing in Texas costs $25. You may also need to pay additional fees for each county in which you do business. Each state has different rules, so check your state’s official state government page for more information. 

5. Fulfill the publication requirement

Some states, such as Illinois, require you to publish a newspaper notice of your DBA filing for three to four consecutive weeks in the county where you filed your DBA certificate. Deadlines for fulfilling this requirement vary by state. Once you’ve published your announcement, you may need to file a proof of publication form. This follow-up step is often free.

Many states publish a list of approved newspapers where you can publish your announcement. Newspapers charge a DBA announcement fee. Such fees vary by publication. For example, the Los Angeles, California county clerk’s office offers a list of approved newspapers where DBAs can be announced, complete with fees for each one. Fees range from $35 to $575 per published announcement, with most fees remaining under $120.

“Some business owners might fail to publicize their DBA, which is a requirement in some jurisdictions,” says Brenke. “It’s always recommended to seek legal counsel when registering a DBA to make sure all the bases are covered.” 

6. Use your DBA as you like

Once your DBA is approved, you can incorporate it into different parts of your business, such as: 

• Writing contracts and signing agreements with your DBA. 
• Opening a business bank account with your DBA. 
• Opening a business credit card with your DBA.
• Operating a franchise location under your DBA name. 

7. Renew your DBA filing

After you initially file your DBA, remember to renew it so it remains active. Some states require renewal every year, while others require renewal every few years. In Utah, for example, a DBA expires every three years. In South Dakota, you’re required to renew your DBA every five years.

There’s also usually a renewal fee, often for every business name you’re renewing. For example, in California, you are required to renew DBAs every five years with the county clerk. The filing fee is $26, plus $5 for any other DBA names needing to be renewed.

DBA filing cost

The cost for filing a DBA varies by state, county and city. The cost may also vary depending on business type. Typically, the cost to file ranges from $5 to $100. Other state and county fees may also apply. Filing fees for additional names usually are less than $10 each. 

Other fees that may apply include announcing your DBA in a county newspaper and renewing your DBA periodically. The fee for this step varies widely by publication and location, with some offering announcement publication for as low as $5 and others offering the same service for $100 to $600. In addition, to maintain your DBA, you often must pay renewal fees of around $25 every two to five years.

DBA examples

Here are a few examples of DBA use cases: 

Franchise 

Bob operates an LLC in the food and beverage industry. He decides to expand his business by buying a franchise restaurant. However, his LLC does not share the name of the franchise. He files for and receives a DBA of the franchise name. The new restaurant then is owned by his LLC but operates under the required franchise name, giving him the name recognition he needs for immediate success of his new restaurant. 

Offering expansion

Cat Holdings Unlimited is structured as an LLC. The business sells a wide array of cat treats, cat foods and cat care items, but it would like to start selling dog desserts. To do so in a way that makes sense to customers, it files a DBA as “Doggone Desserts,” then markets the new product line using the DBA name.

Sole proprietorship

Laurie would like to start working from home as a graphic designer and plans to create an LLC business structure. However, until she can go through the LLC process, her sole proprietorship does not have a name that reflects her services yet shields her personal name. She files for and receives the DBA name “Graphic Creations.” This lets her market her services using this name via a website and social media presence. 

When Laurie files to form her LLC, she names it Graphic Creations LLC. Her already-established reputation under the Graphic Creations name gives her a head start on business success. 

Frequently asked questions (FAQs)

What is the difference between a business and a trade name?

A trade name is the same as a DBA. It is a name for conducting business that differs from your own name or the legal business name you registered. A DBA also might be called a fictitious name or assumed name.

Is my DBA connected to my EIN?

Your DBA is not necessarily connected to your EIN. Your EIN identifies your business and the legal name that was registered at its formation. In turn, your DBA is connected to and represents your business. So, when you operate under your DBA, you can use the EIN of your business entity together with your DBA. For example, you can provide your DBA and EIN to open a bank account under your DBA name.

However, some sole proprietorships don’t have an EIN but do have a DBA. In that case, your DBA does not have an EIN connected to it.

Do DBAs expire?

DBAs do expire, but the expiration date varies by state. Some states require an annual renewal while others don’t require DBA renewals for 10 years. For example, in California, a fictitious business name expires five years from the date it’s filed with the county clerk. In Missouri, you also need to renew your DBA after five years and are required to renew it within the six months prior to the DBA’s expiration date.