Why do i need dba

Some jurisdictions require businesses to publish their prospective DBA names in the legal notices of a local newspaper. This is intended to give proper notice to anyone else using the DBA name.

The time period may vary, but typically, the DBA notice may need to be published once per week for a period of four weeks. It is important to note that a DBA name is different from a trademark. A DBA gives your business certain distinctions and benefits but does not protect your business name from being used by others.

For that, you need to seek separate trademark protection. Business experts recommend that all small businesses conduct a business name search and search for existing trademarks before filing a DBA. For more information on trademark protection and intellectual property issues, visit our resource What is a Trademark and Why Do I Need One? Using a DBA allows your small business to conduct business, open bank accounts, and receive payment under a name different than the legal name of your business.

It can help you cater your business name to your legal and marketing needs, as well as helping avoid confusion with your customers and vendors. Just remember to check all the legal boxes to make sure your DBA is legally recognized as legitimate. If your business is an LLC or corporation, you enjoy certain legal protections. But if I sign a client contract under Spring Flowers or some other variation like that , that contract may not hold up in court.

There are a few other details to know. So back to my Spring Flowers business. I incorporated my business as Spring Flowers Gardening. It depends. When you file for an LLC or corporation, this can give you exclusive rights in your own state. You can also file for a trademark to guarantee exclusive rights to the name within your line of business in all 50 states. You should file for a DBA before doing any business under your fictitious business name.

Some jurisdictions give you some leeway and will allow you to file shortly after you first use the name. With a DBA a prerequisite to opening a bank account and forming contracts with customers, however, I recommend filing for one upfront. From state to state and county to county, the requirements for filing a DBA vary. In some states, you register for DBAs at the county level and individual counties may have different forms and fees.

You can request a Certificate of Good Standing from the secretary of state. There are several businesses that will prepare and file the necessary forms for you. The same goes for an LLC. You may be asked by your state or county to announce your DBA by putting an ad in a local newspaper so the public can be made aware of your filing. Filing can be carried out online in some states while others want you to mail notarized documents to their offices.

To avoid using your social security number to identify your business, consider applying for an employer identification number. This helps keep your personal and business matters separate. In many states, a DBA registration must be renewed every five years or so.

Make a note to file for renewal before it expires so you can continue to legally operate your DBA. If the information in your DBA filing changes e. Some states require businesses to file an amendment. Others require a whole new registration. Be sure to keep your DBA up to date.

If this all seems like a hassle, and you want to go ahead and use a fictitious name without registering, think again. It is illegal to operate a business under a non-registered, assumed name. Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page.

However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money. In this article, we'll focus on the acronym DBA. Registering your DBA alone doesn't legally protect your business, but it might be legally required, depending on the state, city or county in which you operate, as well as your business entity.

Below, we'll dig deeper into the DBA meaning, when your business needs one and a few more reasons why filing a DBA is a good idea for any business. Filing for a DBA allows you to conduct business under a name other than your own; your DBA is different from your name as the business owner, or your business's legal, registered name. That is, unless you register your business as a certain legal entity more on that below , or if you rename and register your business with a DBA.

Also keep in mind that, depending on where you live, you'll need to comply with your state DBA requirements. Not all businesses need DBAs. It depends on a combination of the business's legal entity, the locale's requirements and the business owner's preference.

If you're a sole proprietorship or general partnership, you'll need to file a DBA if you want your company to operate under a name that's not your or your business partner's full, legal name.

Though they do still need to acquire the necessary business licenses and permits. So, the owners and their businesses are one and the same entity, which means they have the same name, too — unless they file a DBA. While franchise owners don't need a DBA, it is common they file one in order to establish their identity as a local business. Say, for example, you bought a local Burger King franchise.

Franchisees tend to form as LLCs or corporations, so you form a franchise under Business LLC, but you make your DBA "Burger King" in order to let your state know that you are "doing business as" the franchise you joined.

Unlike sole proprietorships and general partnerships, these business types have already registered their entities and business names with the state. However, any business formed under one of these entities still has the option to register a DBA name.

That would allow them to do business under a name other than the name on their incorporation documents.