The Importance of a Business Name

The first impression your business makes often comes from its name. While your business may operate under a different name than what's on its organizational documents, registering a Doing Business As (DBA) name allows this flexibility. Also known as an assumed name, fictitious business name, or trade name, a DBA lets your business operate under a different name while retaining its legal name. This registration can be done at startup or anytime thereafter for various strategic reasons.

Why Companies Use a DBA Name

When forming a business, owners choose a structure—sole proprietorship, partnership, LLC, or corporation. Depending on this choice, the legal name may default to the business owner(s) or be included in formation documents. However, many states require a DBA registration if a business operates under a name other than its legal name.

While a DBA doesn't provide liability protections or tax benefits like forming a separate legal entity, it offers several advantages:

• Privacy Protection: Use a name different from personal names.
• Rebranding: Adopt a more descriptive, memorable, and market-friendly name.
• Alignment: Match the business name with its products or services.
• Differentiation: Distinguish brands, products, and services as business activities evolve.
• Regional Branding: Use different names in different areas.
• Online Presence: Launch a website targeting a specific audience.
• Banking Ease: Simplify opening a business banking account or contracting with clients.
• Franchise Flexibility: Allow a franchisee to operate under the parent company's name.

Additionally, a DBA may be necessary if expanding to a state where the legal business name is already in use.

How to Name (or Rename) Your Company with a DBA

Registering a DBA is straightforward but varies by state. Here are key points to remember:

• Filing Requirements: Obtain a DBA by filing paperwork and paying a fee (typically $10 to $150).
• State Requirements: Not all states require DBA registration, but many do, along with renewal every few years.
• Filing Location: Some states require registration with the secretary of state, others with the local county clerk.
• Public Notice: Some states require publishing the DBA in a newspaper or legal publication.
• Documentation: Requirements vary; some states need a certificate of good standing or a business license copy.
• Changes: A new DBA filing or amendment may be necessary if business information changes.

Failing to register a DBA in states requiring it can lead to penalties. There's typically no limit on the number of DBAs a business can use, but each DBA must be filed individually. States may restrict certain names (e.g., those ending in Corp., Inc., or LLC) because registering a DBA doesn't create a legal entity. Avoid using names associated with banks or governmental entities.

Ensuring Unique and Legal DBA Names

A DBA name isn't exclusive in most states, but states may disallow names that are too similar to existing ones. Use state-provided online search tools to check name availability. Avoid names that closely resemble others to prevent customer confusion and refrain from using trademarked names, which are protected by federal law.

To protect a DBA name in states without exclusive rights, consider filing for trademark protection. The U.S. Patent and Trademark Office provides an online search tool to check if a DBA name is trademarked.

DBA Legal Questions? Talk to a Business Attorney

Understanding a DBA's scope is crucial—it's not a separate legal entity, trademark, business license, or permit. While a DBA offers many business benefits, it doesn't grant special tax status or liability protection.

Naming your business is vital to its identity, and a DBA can signal new directions that may raise broader issues. For legal advice on setting up, naming, registering, and running your business, schedule a meeting with our attorneys.