Table of Contents
The DBA (doing business as) is a company’s public-facing name. A DBA permits a lone owner to promote a firm under a different name than their legal identity. A DBA permits the owner of an LLC to promote the company under a name different than the registered name. Instead of “doing business as,” certain states and counties use the terms “fictitious name” or “trade name.” The cost of registering your DBA might range from $10 to $150 every year.
The DBA’s Functions
A “doing business as” register, from the perspective of a solo owner, gives privacy. A lone owner may not want their company’s name to be the same as their personal name. To keep their name confidential, they might register a DBA with the state (or county).
If a lone proprietor’s company name is distinct from their personal name, why do they need a DBA? It’s because the company’s name isn’t listed anywhere. When a sole owner pays taxes, they use their Social Security number rather than their employer’s identifier. If the government needs to hunt down the company, it won’t be able to do it.
It is illegal to operate a company without first registering it as an LLC, corporation, or DBA. In Florida, for example, this is a second-degree misdemeanor.
A DBA gives the owner of a limited liability company (LLC) the authority to promote the firm under a name other than its registered name. Under one LLC name, a company owner may run numerous unconnected firms.
If a business owner owns a pawn shop, a storage facility, and a property management firm, each business may have its own DBA under the same LLC. Having three DBAs aids marketing since each firm may have its own moniker.
It’s crucial to remember that a DBA isn’t the same as a corporate structure. It does not take the place of a single proprietorship or a limited liability company. In addition to being a single owner or LLC, having a DBA is a legal need.
The DBA offers consumer protection from the customer’s perspective. If a customer has a bad experience with a company, they may look it up in an online database and file a complaint with the state. In addition, the DBA system lets prospective consumers search for information about a firm before making a purchase.
Who Should & Shouldn’t Get a DBA
Note: If your company is liable, a sole proprietorship with a DBA rather than an LLC is not the best option. When you run a business as a single proprietor, you put your personal assets at risk if the company is sued.
How to Submit a DBA
Let me start by saying that registering a DBA in certain states is a complex procedure. In Georgia, for example, DBA registration is handled by the clerk of courts in each county. It’s possible that the “doing business as” documentation will need to be filed in person. If you run a company in many Georgia counties, you’ll have to register for DBAs in each one—it’ll be a lot of paperwork. DBA fees are also needed for each. It costs $119 per year for just one DBA in Fulton County (Atlanta). Every year, you’ll pay anything from $10 to $150 on “doing business as.”
Fortunately, the majority of DBA registration procedures are simple:
- Search existing business names on your state’s official business registration website to check whether your preferred name is available.
- If the name is available, submit the necessary paperwork and money to the state, either online or in-person at the relevant local government office.
- If you need to submit an “intent to use a new business name” or a “notice of your new name” to the local newspaper, check with your county clerk’s office. Although this is an antiquated procedure, it is still required in certain counties.
How to Protect Your Company’s Name
You haven’t legally secured your company name just because you filed a DBA. If a rival uses your company name or a similar version, you have few legal options. Registering a legal company, such as an LLC or a C Corporation, is a more legitimate option to protect your business name.
Obtaining a trademark for your company name is the most acceptable approach to protect your organization. Because of the LLC’s built-in protections, most small firms do not file a trademark application.
Another incentive to register a trademark is if your product or service appeals to a national or international audience. A wider consumer base means more competition and a greater chance that your brand will be used. A trademark might cost anywhere from $225 to $2,000 if you want to get one.
A substitute for the DBA
I must emphasize that the DBA for a single proprietorship should only be used for low-risk businesses. If your firm engages in acts that potentially lead to a lawsuit from a client, employee, or vendor, you must register as an LLC (or possible C-corp).
You may register as a legal entity both before and after you’ve launched your company. By forming an LLC, you will be able to formally name your company to the state. If you’re an LLC, you only need to file a DBA (or several DBAs) if you’re running more than one company.
You may register your LLC using your state’s official company registration website, just as you do with a DBA. You may also employ an online legal service if your state’s website is difficult to browse. IncFile is a legal service that will file your LLC paperwork with the state for free, plus any applicable state costs.
Conclusion
Depending on the sort of company you operate, your own definition of a DBA may differ. If you’re a sole owner, you’ll need a DBA to show that your company and personal names are distinct. If you own an LLC or C-corp and want to run many enterprises, you’ll need a DBA. For a modest charge, you may register a DBA via your state or county’s official business registration website or an online legal service like IncFile.
