Handbook / Business structure

DBA name: when you need one and how to register a trade name

Many small businesses operate under a name other than the owner's legal name. "Jane Smith" might trade as "Northside Bookkeeping"; "Smith Ventures LLC" might sell as "Northside Candles." In most places, using a name like this requires registering it as a DBA, short for "doing business as." This guide explains when you need one, how to register, and what it does and does not do.

What a DBA is

A DBA is a registered business name. The SBA notes it is also known as a trade name, fictitious name or assumed name. It lets the public, banks and government know who is behind a business name.

A DBA does not:

• create a separate legal entity
• change how your business is taxed
• give liability protection
• give exclusive rights to the name

When you need one

Generally:

• Sole proprietors need a DBA if they trade under any name other than their own legal name. Using "Jane Smith Design" may or may not require one, depending on local rules.
• LLCs and corporations need a DBA to trade under a name different from their registered legal name.
• Partnerships often need one unless trading under the partners' surnames.

The SBA explains that most states require you to register a DBA if you use one, and that some business structures require it.

Where to register

The SBA says you might need to register your DBA with the state, county or city where your business is located. Practice varies:

• some states register DBAs centrally
• some require county-level filing
• some cities have their own registration
• a few require publishing a notice in a local newspaper

Check your state's business filing office and your county clerk.

How to register

1. Choose the name and make sure it fits your services.
2. Search for conflicts in state and local records.
3. Check trademarks and domain availability.
4. File the form with the correct office and pay the fee.
5. Publish a notice if your state requires it.
6. Renew when required; some DBAs expire after a set period.

What about protection?

The SBA states that registering a DBA does not provide legal protection by itself. The SBA describes four separate kinds of name registration, each serving a different purpose:

• entity name registered with the state when forming an LLC or corporation
• trademark protecting your brand
• DBA registering a trade name
• domain name for your website

Each is legally independent. If your brand name is important, research trademark protection.

Banking and paperwork with a DBA

• Banks usually require DBA registration to open an account in the trade name.
• Use the DBA consistently on invoices, contracts and your website, with your legal name or entity name where required, for example "Smith Ventures LLC, doing business as Northside Candles."
• Clients may pay you under the trade name; make sure your bank account can accept those payments.

Tax reporting

A DBA does not change tax treatment. The IRS explains that a sole proprietor is someone who owns an unincorporated business by themselves, and reports business income on their individual return. If you have an EIN, you can usually list the trade name with the IRS. Client forms such as Form W-9 typically ask for both your name and your business name.

DBA or LLC?

A DBA gives you a brand name cheaply but no liability separation. An LLC creates a separate legal entity. Some owners start with a DBA and form an LLC later; others form an LLC and add DBAs for different brands. The guides to the sole proprietorship and forming an LLC explain the choice.

Choosing a good DBA

Pick a name that is easy to spell, describes what you do, and is not too close to a competitor. Check that a matching web domain and social handles are available before filing, so your name is consistent everywhere customers find you.

Update your records

After registering, use the DBA consistently on invoices, your website and contracts, and tell your bank and payment processor.

Register a DBA when trading under a name other than your legal or entity name, file with the right state or local office, renew on time, and remember it does not protect the name or create a separate business.