Will a DBA benefit my business?

Simply put, a DBA allows you to do business under a different business name other than the legal name.  The acronym DBA means “Doing Business As.”  It is also referred to as the “assumed name,” “trade name,” or “fictitious name.”

Some businesses require a DBA.  Sole Proprietorships and Partnerships form DBAs so the company can operate without using the business owner’s legal name.  

Business owners who purchase a franchise such as Taco Bell would form a DBA. The business owner owns the establishment, but the DBA would be filed under Taco Bell.

Other businesses such as S-Corps, C-Corps, LLCs, and LPs are technically not required to form a DBA. However, they have the option.  The most common case whereby a business owner would create a DBA is to distinguish between specific lines of business.  Filing a DBA means the business owner doesn’t have to form a brand new company.

Forming a DBA to distinguish specific lines of business makes the following tasks more manageable:  

  • Business Banking
  • Branding purposes
  • Expansion / Growth

To file a DBA, work within your state or county’s requirements to go the right way. The requirements vary from state to state.  This step should be completed 30 – 60 days before opening for business.