If you’re just starting your business, you may have heard that you need a DBA registration. DBA stands for “doing business as.” It’s a way to give your business a name other than your own.
In this guide, we’ll break down what a DBA means, why you may want to register a DBA for your business, and some easy steps to help you get started.
[Read more: Starting a Business? A Guide to Business Licenses and Permits]
What is DBA, and when do you need one?
“Doing business as” is your business’s assumed, trade, or fictitious name. It’s like an alias for your business. “Essentially, getting a DBA is like Clark Kent conducting his hero work under the name Superman,” wrote LegalZoom.
You might choose to register a DBA for your company for many reasons. The most common scenario is in a sole proprietorship where the owner wants their company to operate under a name other than their legal name. A DBA can afford sole proprietors a degree of personal privacy and the benefits of using a more official-sounding business name.
In another scenario, a DBA can be useful if you decide to rebrand your registered limited liability company (LLC) or corporation and branch out to a new market. A DBA would allow you to pursue a new direction than what your official name suggests. For instance, if you registered the LLC “John’s Lawn Care” and later decided to offer pool services, you could file a DBA for the name “Local Lawn Care and Pool Services.”
Franchisees also benefit from DBA registration. “For example, you buy a local Burger King franchise and form a limited liability company called 123 Business LLC. You then make your DBA ‘Burger King’ to let your state—and your local customers—know that you are ‘doing business as’ the franchise you joined,” wrote NerdWallet.
DBA vs. LLC: which is right for your business?
A DBA and an LLC are two different ways to structure your business. The biggest, most important difference is that a DBA is not a legal entity. It offers no personal liability protection, nor does it come with any significant tax benefits. DBAs, by default, are taxed as sole proprietorships.
LLCs are legal entities providing limited liability protection and tax flexibility to their owners.
You can have both a DBA and an LLC. For example, you might form an LLC to get liability protection and then file a DBA to use a different name for your business. LLCs are more complex and expensive to form than DBAs, but they also add legitimacy to your business that DBAs won’t.
How to file a DBA
The requirements for filing a DBA vary from state to state, city to city, and even depending on the type of business structure you use. The general process requires filing paperwork with your county clerk and state government. Expect filing fees to range from $10 to $100.
Some states require you to announce a “public notice,” informing your local area that you intend to register a new name. This notification process might mean that you take an ad in a local newspaper to officially announce your new business name for a certain period of time.
As you prepare to register your DBA, keep in mind that there are some restrictions as to what you can call your business. You aren’t permitted to register a DBA name that has a corporate ending (e.g., Inc., LLC, or Corp). This is to prevent a business from misleading consumers as to its corporate status. Likewise, it’s generally forbidden to register a DBA that uses banking-related words or terms that could be associated with a governmental entity.
Before you get attached to your preferred DBA, search within your jurisdiction to ensure no one else has already filed for the same name. If you find one that's available, it's wise to protect your business name by registering it with the appropriate authorities.
[Read more: How to Trademark Your Startup Business Name]
Are there downsides to filing a DBA?
Filing a DBA is not the same as changing your business identity. A sole proprietor can’t file a DBA and establish personal asset protection. If something goes wrong while running your business, you, as the sole proprietor, could still be liable for a lawsuit. DBAs are related to the naming of your business only.
The other potential drawback to registering as a DBA is that it doesn’t preclude another business from using your new assumed name as their own. “In fact, if you have a DBA filed with the state and someone decides to form a formal business entity under that name, you’ll actually have to choose another name, because the business formation process would reserve the name for that other company,” wrote ZenBusiness.
These considerations shouldn’t necessarily prevent you from filing a DBA, but you should be aware of the limitations of this type of registration as you build your business.
Think of the DBA as your business's nickname on paper and the trademark as the legal shield protecting that identity.
Common mistakes to avoid when filing a DBA
There are a few best practices you should follow when filing a DBA. Primarily, make sure you’re following the right guidelines; the rules vary from state to state, and sometimes even by city and county. Furthermore, you must register your DBA in each jurisdiction (state or county) where you wish to operate under that DBA.
It’s also important to make sure a name isn’t already taken. “Check the trademark office, do a domain name search, and confirm that social media handles are available before filing a DBA application,” wrote Shopify.
As long as the name you have in mind is available, the final mistake to avoid is misspelling words or making a name that’s hard to remember. Remember, your DBA is what consumers will use to recognize your business. Make sure you use words that are memorable and easy to pronounce.
Can you change your DBA?
If there’s an error or typo in your DBA registration, don’t worry, there’s an easy fix. You can simply file a certificate of correction to the same authorities to make sure your business name is properly registered.
If you want to change your DBA name altogether, you can either wait to renew your DBA or follow these steps:
- If applicable, get formal approval from your shareholders, partners, or LLC members.
- File an amendment with the secretary of state and any other agencies that you originally filed your DBA with, plus the filing fee.
- Notify state regulatory agencies, tax authorities, licensing agencies, the post office, and other stakeholders of your name change.
- Update all of your marketing materials and business accounts, and notify your clients, suppliers, and vendors.
It can take some effort to redo your DBA registration, so do your research before filing the first time.
How long does a DBA last?
Most states require you to renew your DBA after a certain number of years. This time frame varies from state to state. The average is five years before you will need to renew your DBA registration—although, in New York, no renewal is necessary, as your DBA has no expiration date. Confirm the time frame in your area.
“Certain states also require you to file a new DBA if the information provided in the original filing changes, such as a change in officers (for a corporation), partners (for a general partnership), or members (for an LLC),” wrote NerdWallet. “Note that in some states, you can simply file an amendment under these circumstances.”
When you file your DBA for the first time, ask the clerk for the complete details. They can provide the timeline and steps for ensuring your DBA and brand are protected in the long run.
DBA vs. trademark: what a DBA does (and doesn’t) protect
As mentioned, a DBA doesn't give you any exclusive rights to the name you choose for your business. Someone else can register the same or a similar name, and you'd have little legal ground to stop them.
That's where a trademark comes in. A trademark is federal protection registered through the U.S. Patent and Trademark Office (USPTO) for the name, logo, slogan, or other identifiers that distinguish your brand. Unlike a DBA, a trademark gives you the legal right to stop others from using a name similar to your brand. It gives you an avenue for legal action if you feel your brand is being infringed on.
The good news is you don't have to choose between a DBA and a trademark. Many small business owners use both: a DBA for local operational purposes at the state or county level, and a trademark for broader brand protection at the federal level. Think of the DBA as your business's nickname on paper and the trademark as the legal shield protecting that identity.
Which route makes sense for you really comes down to your long-term goals. If you're a niche, local business with no plans to expand, a DBA may be all you need. But if you're building a brand you want to grow, protect, and potentially license or franchise one day, investing in a trademark is worth exploring.
DBA banking and contracts: when you’ll need proof of filing
Banks almost always want proof of DBA registration before they will put the DBA on the name of your business bank account.
“Banks often require sole proprietorships and the partners in general partnerships to have a DBA before they can open a business bank account. Banks may require you to show them the DBA filing or assumed name certificate as proof you registered the name,” wrote Wolters Kluwer.
You typically must register the DBA first with the state or county, then bring the DBA certificate or certified filing when opening a checking account in the DBA name. To open a DBA bank account, you will likely need your government ID, the DBA certificate, a Social Security number or EIN, and (for LLCs/corps) formation documents like articles of organization or incorporation.
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