The businesses you know aren’t always called what you know them as. That’s because of the “Doing Business As,” or DBA. You might have heard of major corporations using DBAs — such as Gap, Inc. operating as Gap, Old Navy, and Banana Republic — but it’s not uncommon for small businesses to do so, too. For instance, let’s say your name is Thomas Anderson and you run a landscaping business. To remain compliant with state regulations, you can’t just start operating as Anderson’s Landscaping. You need to register a DBA with the state.
Your brand name is a cornerstone of your business, which is why it’s crucial to know how to register a DBA to remain compliant and keep your business operating smoothly.
What is a DBA?
Also known as a trade name or assumed name, a DBA is simply a public registration that declares that your business is operating under a different name than your legal one. Anderson’s Landscaping is a DBA for Thomas Anderson, but it’s crucial to understand that a DBA is not a separate legal entity.
When Thomas Anderson files a DBA, it doesn’t create a new business structure or start a new company. Instead, it’s essentially a public notice, informing people that Anderson’s Landscaping is the trade name of the business that’s legally registered as Thomas Anderson.
When Do You Need to Register a DBA?
Generally, you need to register a DBA any time the name you use to conduct business with the public is different from your legal business name. This may be true for a variety of business entities:
Sole Proprietors & Partnerships: Here comes Thomas Anderson again. If you’re a sole proprietor, your legal business name is simply your full legal name. There’s no legal separation between you and your business. If you’re Thomas Anderson, you must register a DBA to operate as Anderson’s Landscaping. Without a DBA, operating under a name other than your personal name could be illegal.
LLCs and Corporations:Limited liability companies (LLCs) and corporations are distinct legal entities. If these entities want to operate a new brand, division, or specific product line under a name different from their officially registered legal name, they must register a DBA. Meta Platforms Inc., for instance, has DBAs for Facebook, Instagram, WhatsApp, and many other distinct properties.
Franchisees: Many franchisees operate under the brand name of their franchisor. A franchisee could be an individual, LLC, or corporation, so they must register the franchisor’s brand name as a DBA. For instance, if “Smith Holdings LLC” owns a local McDonald’s, they must register McDonald’s as a DBA to legally operate under that internationally recognized name.
Benefits of Registering a DBA
Beyond the clear benefit of compliance with local and state laws, there are several key benefits of registering a DBA, including:
Branding: A DBA helps you build a distinct and memorable brand identity, or multiple brand identities. There’s no federal limit to how many DBAs you can have, although some states may have specific regulations.
Banking: With a DBA, you can open a business bank account under your chosen business name. This can help separate personal and business finances, which is crucial for accurate accounting, tax preparation, and showing credibility to potential lenders. It also may be legally required for some business entities.
Flexibility: DBAs offer excellent branding and operational flexibility for larger companies with many brands, product lines, or verticals. They can create new businesses within the business without having to form a new, separate legal entity for each. This can save significant time, money, and effort.
How to Register a DBA Step-by-Step
The precise steps to register a DBA vary between states, so it’s important to check your local Secretary of State website to understand the specific steps necessary. That said, the process generally looks like this:
Determine Where to Register: There is no centralized federal DBA registration. In some states, you may have to file with a state office, while others may require you to register with a county clerk’s office or local equivalent in the county where your business operates. To find your jurisdiction’s specific requirements, check your Secretary of State’s website.
Choose and Research Your DBA Name: Picking the right name is important for branding, but it’s also crucial for compliance. Once you’ve picked a name you love, make sure to search your state’s business name database to ensure it isn’t already taken.
Get the Forms You Need: DBA forms are usually available for download on the website of the relevant government office, whether it’s the Secretary of State or County Clerk’s office.
Complete and File the Application: Take your time filling out the DBA application form to avoid delays or rejection. You’ll typically need to provide your legal name or the legal name of your business, your business entity, your business address, the exact DBA name you wish to register, and a brief description of your business. In some cases, you may need to get the form notarized. It’s also important to note that you’ll typically have to pay a filing fee. You can usually file online, by mail, or in person.
Fulfill Publication Requirements (If Applicable): Many states and counties require you to publish notice of your DBA in a local newspaper. The filing office will usually provide a list of approved newspapers and provide instructions for how long you need to publish the notice. After publication, the newspaper will provide you with an Affidavit of Publication or Proof of Publication that you should keep for your records. You may have to submit a copy to the local records office.
Maintain Your DBA: Finally, your DBA requires ongoing maintenance. They typically have an expiration date and require renewal every few years. If you change your business address, structure, or want to change your DBA name, you’ll need to file an amendment or new DBA statement. Failing to renew your DBA or update information may lead to your registration lapsing, which could result in fines or the loss of your DBA.
Important Considerations for Registering a DBA
Registering a DBA should be a straightforward process, but it’s important to keep some key considerations in mind.
Not a Legal Entity: Remember that a DBA does not create a separate legal entity or provide any personal liability protection. Many new business owners mistakenly believe registering a DBA is the same as forming an LLC or corporation. It’s not; if you’re a sole proprietor who wants to protect your personal assets, you should form an LLC or corporation.
No Trademark Protection: Just because you register a DBA name in one state does not grant you exclusive rights to that name or offer trademark protection. Someone in another state could still use the name. If you want to protect your brand name, you should pursue federal trademark registration through the USPTO.
States Are Not The Same: Always verify the specific requirements for your state, county, and even city. Even if you’ve registered DBAs in the past in one state doesn’t mean the process will be the same in a new state.
Remember Renewal Deadlines: DBAs are not permanent. Failing to renew your DBA on time can lead to its invalidation, forcing you to re-register and potentially face penalties.
Latest resources
Take a look at our news on Operations & Management
Table of content
Share
