The short answer is that no, you most likely don’t need to file a DBA.

However, there are a few circumstances where you could be legally required to do so, or there will be distinct advantages to having a DBA for your sole proprietorship.

Naming Your Business

You can use almost any name you want for your business, subject to some practical limitations. For example, you probably can’t (and shouldn’t) use vulgar or inappropriate words in your business’ name. Then there are situations where you can use certain names, but only in certain situations.

For instance, if you’re registering a DBA for your sole proprietorship or partnership, you can’t use terms that imply your business has a different legal form. So a sole proprietorship could use “Acme Consultants” as its DBA but not “Acme Consultants, Inc.” or “Acme Corporation.” Other business name limitations generally include:

• Not using professional titles or certifications that don’t apply or aren’t present with the business.
• Using a name that implies the business is a government entity.
• Using a business name similar to another business’ name.

One thing to keep in mind is that if you use a formal business structure (like a corporation or limited liability company), you’ll need to have a registered agent to accept legal documents on the behalf of the business. An owner, partner or member of the business can serve as the registered agent. Still, it’s usually more convenient and practical to assign someone else, such as a registered agent service.

Advantages of Having a DBA

If you decide to get a DBA for your business, nothing changes about your business besides the fact that it has a business name that’s different from its legal name. But as mentioned earlier, there are a few benefits to filing a DBA for your business if you have a partnership or sole proprietorship.

Legally Operating Your Business

You don’t have to have a DBA for your business just because it’s a sole proprietorship. But if you market or operate your business with a name that’s different than its official name (which would be your personal legal name, in the case of a sole proprietorship), then you must file a DBA.

Opening a Business Bank Account

Banks will often only allow you to open a business bank account if your business has a DBA. Some exceptions could exist if the bank is located in a state that doesn’t have this requirement.

Marketing Your Business

Depending on what business you’re in, having a memorable name can help expand and marketing your business. “John Brown Bakery” doesn’t have the same impact on potential customers as “Magical Bakery Creations and Treats.”

Forming an LLC Instead of a DBA

Despite the above-discussed advantages of a DBA, it still has some limitations. One of the most notable is that it provides no liability protection for the owner. So if your business gets sued and loses in court, you could be personally liable for paying the legal judgment even if you have a DBA for your business.

Forming an LLC, or Limited Liability Company, allows you to avoid this major drawback and avoid personal liability for the legal debts and judgments of your business (subject to a few limited exceptions, such as “piercing the veil”).

Conclusion

If you operate your business as a sole proprietorship, you don’t need to have a DBA. The only major exception is if you’re using a name for your business that’s different from its legal name. That said, certain advantages come with having a DBA, such as opening a business bank account and having a name that makes it easier to market your business. The biggest limitation of a DBA is that it offers no personal liability protection if your business gets into financial or legal trouble.

As a result, there are situations where you may need (or want) to register a DBA for your online business.

When Do I Need to File a DBA for an Online Business?

If your online business name is the same as your business's official name, you don’t need to file a DBA. But if any of the following situations apply to you, then you should consider registering a DBA for your business.

Selling Products Regulated by the Government

If you’re selling a product that’s regulated by the government, such as tobacco, alcohol or health products, you’ll almost always need some type of business license. These licenses may exist at the federal, state and/or local level. Depending on how you operate and market your business, you may also need to file a DBA in addition to getting a business license. This is particularly true if your online business uses a trade or business name that’s different from the legal name of your business.

Selling Products as a Branded Name

Selling someone else’s branded products online doesn’t mean you need to register a DBA. However, you might need to file a DBA if you’re selling one of your products with a name or brand that’s different from your business's official name.

Platform Requirements

Of the major online selling platforms, such as Amazon, Shopify, Etsy, or Mercari, none of them require you to file a DBA to sell on their websites. Yet this doesn’t mean an online selling platform isn’t allowed to impose such a requirement. You should check the terms of service and other selling requirements if you’re not sure about your current online selling platform.

Should I Get a DBA as a Sole Proprietor, or If I Already Have an LLC?

Structuring your business as a sole proprietorship, corporation, or limited liability company (LLC) will not typically require you to create a legal requirement for you to file a DBA. The DBA requirement often arises if you’re using a business name online (or anywhere else) different from your legal business name.

One of the reasons people think they might need DBA is because they think it will offer liability or legal protection in case their business gets into legal or financial trouble. For example, if someone wants to sue a corporation or LLC, unless the plaintiff can pierce the corporate veil, the owners of the corporation or LLC won’t need to worry about being personally liable for the debts or legal liabilities of the business they own. Filing a DBA doesn’t offer this or any other legal liability protection.

For What Online Businesses Do I Need a DBA?

You need a DBA for your online business if it carries out its operations using a name different from your business's legal name. For example, if your business’s official name is “Archie Computer Development, LLC” but you sell custom gaming computers online as “Hardware Gameware Tech,” then you need a DBA. So it’s this business name discrepancy that creates the legal need to register a DBA, not where you sell on the Internet.

That being said, there could be nuances to your business. Or there could be policies of specific online platforms where it might be a good idea to file a DBA, even if it’s not legally required. For more information, please see:

• Do I need a DBA for my business website?
• Do I need a DBA for Shopify?
• Do I need a DBA for Etsy?
• Do I need a DBA for Amazon FBA?
• Do I need a DBA for my Website?

Can a DBA Protect My Online Business Name?

No, it can’t. The only thing that can stop someone else from taking your online business name is to get a trademark for it.

Many online selling sites that allow you to have a custom shop name may stop someone else from taking the exact online shop name as you. However, even with these policies in place, they may not stop someone else from creating a very similar online business name as yours. For example, on Etsy, if your shop name was “Cardmaker Shoppe,” someone else could create an Etsy shop called “Cardmaker’s Shoppe.”

Where Can I Apply for a DBA?

The answer depends on your local jurisdiction requirements. This means you need to check with your state, county, and municipality to see what their DBA filing requirements are. Often, you’ll need to go to your local county or court clerk, where your online business is located, to file a DBA. Many state or local government websites will list out the specific requirements and steps needed to file a DBA.

Conclusion

You don’t need to file or register a DBA just because you operate an online business. The legal requirement to get a DBA usually applies if you’re running a business using a name that’s different from the business's legal name. But there might be certain situations where registering a DBA for your business is a smart thing, even if it’s not required.

When Do I Need to File a DBA for Amazon FBA?

The main situation where you’ll need to file a DBA for Amazon FBA is if you’re using a business name on Amazon.com that doesn’t match your business’ legal name. So imagine your business’ legal name is “Jones Bridal, LLC.” If the Amazon FBA name you use is “Bridal Creations and Solutions,” then you’ll need to file a DBA for the Amazon FBA name you’re using.

Understand that this filing requirement exists not because of Amazon FBA’s policies. Rather, it’ll be because applicable state and local laws require it. In other words, if you carried out your business under a name that was different from its legal name, you’d most likely need to file a DBA, whether you were using Amazon FBA or not.

Does Amazon FBA Require Having a DBA?

Amazon FBA doesn’t require sellers to have a DBA. If your business’ legal name is “Jones Sports Products, LLC” and that’s the name you use on Amazon FBA, no DBA is necessary. If you’re a sole proprietor and you use your personal name on Amazon FBA, you can continue using your name to sell products with Amazon FBA without filing a DBA.

Even though Amazon FBA doesn’t require you to have a DBA, you might still want to get one. A DBA makes it possible to open a business bank account and can add a bit of professionalism to your online business presence.

Do I Need a Business License to Sell on Amazon?

No, you don’t, as Amazon FBA doesn’t require sellers to have a business license. That being said, depending on what you sell and where you’re based, there could be a state or local law that requires you to have a business license, even if Amazon doesn’t. For example, if your product is federally regulated, you may need a business license to sell that product. But this requirement exists whether you sell on Amazon, another online platform, or from a brick-and-mortar store.

Another consideration is if you’re required to collect sales tax and forward it to your state’s department of revenue. In this situation, you might be required to obtain a sales tax license or permit. Check with your state’s taxing authority to find out if this applies to you.

Does my Amazon Seller Name Need to Match my Business name?

You can use a name for your Amazon store even if it doesn’t match your business’ official name. But if you do this, you’ll need a DBA. Filing a DBA becomes necessary when the name you use to conduct business is different from your business’ legal name. If you don’t want to file a DBA, then your Amazon seller name needs to match the legal name of your business.

Can a DBA Protect my Amazon FBA Name?

A DBA offers practically no protections when it comes to stopping others from using a business name, such as your Amazon FBA name. If you want to stop other people from using your Amazon FBA name, you’ll want to get a trademark for it. Getting a trademark will stop anyone from using your Amazon FBA name on Amazon.com and almost anywhere else in the country. Another advantage of getting a trademark is that you can make use of Amazon’s Brand Registry.

Conclusion

Selling through Amazon FBA doesn’t require you to get a DBA. But certain scenarios might make it a good idea to file a DBA. These include using a name on Amazon that’s different from your business’ legal name and having a more professional and recognizable brand for your online business.

However, state or local laws may require Etsy sellers to file a DBA in certain situations. The most common scenario where a DBA is required is when the Etsy Shop name is different from the business’ official, or legal name.

When Do I Need to File a DBA for Etsy?

If you sell physical or digital products on Etsy, you’ll need to file a DBA only if your Etsy Shop name is different from your business’ real name. For instance, let’s say your Etsy Shop name is “Monica’s Jewelry Creations.” And your business’s official name is “Precious Metal Manufacturing, Inc.” Because you’re conducting business using a name that’s different from your business's legal name, you need to file a DBA for your Etsy Shop’s name.

This DBA requirement doesn’t exist because you’re using Etsy. This filing requirement arises because you’re using a business name in the real world that’s different from your business’ real name. One potential caveat to the above information is if you’re selling food or food products on Etsy.

Do I Need a DBA if I Sell Food on Etsy?

Etsy allows sellers to sell food and other edible products on Etsy and doesn’t require sellers to file a DBA to do so. However, Etsy advises sellers that they may need to follow state and local laws concerning the sale of food products. These legal requirements may set out certain requirements concerning who can make the food, how the food can be packaged, and how the food must be prepared.

There’s a chance that a local rule or law that applies to your selling of food may also impose a DBA filing requirement. You’ll need to check with your local laws and business requirements to know for sure.

Do I Need a Business License to Sell on Etsy?

Etsy doesn’t require its sellers to have a business license. But this doesn’t mean you don’t need one, as a state or local law might require you to have a business license or applicable permit. Generally speaking, if you want to sell products on Etsy as a hobby, you won’t need a business license. However, if you want to sell products on Etsy as part of your business, then your state or local laws could require you to have a business license.

One thing to keep in mind is that even if a business license isn’t required, you still have a legal obligation to pay taxes on any income your sales generate. This is true even if you’re using Etsy as a hobby. You may also be legally obligated to collect sales tax for your state on every applicable transaction you complete as a seller.

Does My Etsy Shop Name Need to Match my Business Name?

No, it doesn't, but you might want it to if you want online shoppers to know your Etsy storefront is for the same business as yours. Another consideration is if you have a DBA for your Etsy shop name or not. If you don’t, then your Etsy shop name may need to match your business name. In other words, if you’re carrying out your Etsy business using a name that’s not the same as your business's legal name, then you may need to file a DBA for the Etsy business name.

Can a DBA Protect My Etsy Shop name?

The best way to protect your Etsy Shop name is to trademark it. Getting a DBA for your Etsy Shop name offers no legal protections to your business’ name. Of course, someone else can’t use your Etsy Shop name for their Etsy Shop. But it’s Esty’s policies that are preventing them from doing that, not the fact that you have a DBA for your Etsy Shop.

One thing to remember is that while Etsy prohibits other users from having the exact same name as your Etsy Shop, they do allow minor variations. For example, if your Etsy Shop name is “Main Street Hobby Creations,” someone on Etsy can set up a shop with an almost identical name, such as “Main Street Hobby Creation.” 

Conclusion

Etsy may not require you to file a DBA for your Etsy Shop, but that doesn’t automatically mean you don’t need one. If you’re using a business name on Etsy that’s different from your business's legal name, then you probably need to file and register a DBA. Another thing to keep in mind is that there could be state and local laws that impose other requirements on you as an Etsy seller, especially if you’re selling food or using Etsy as a business and not a hobby.

When Do I Need to File a DBA for Shopify?

You’ll want to file a DBA for Shopify in at least three situations. Not all of these situations apply to every seller, but it’s good to be aware of them in case your business operations change.

Your Business Name on Shopify Is Different from Your Official Business Name

Imagine your business’ official name is “Smith Electronics, LLC.” However, you carry out your business operations as “The Retro Video Game Shop” at your brick-and-mortar store and Shopify online store. In this case, you’ll need to file a DBA for “The Retro Video Game Shop.” This is because your official business name is different from your trade name (the business name you actually use). This name-matching requirement exists whether or not you use Shopify.

You Sell Products Regulated by the Government

To understand why this might require you to file a DBA when using Shopify, you should understand why DBAs need to be registered in the first place. This filing or registration requirement exists to protect consumers. Specifically, it’s to protect consumers from sellers who cause harm.

Should the consumer decide to take legal action against the seller, they’ll know who to sue. Or maybe the consumer wants never to buy another product or service from that seller again. If a DBA is registered, it makes it possible for the consumer to know if the “new” company they’re buying from later on is different from the original company that caused them harm. If a company sells something that could affect the health and safety of consumers, there’s a reasonable chance that the company may be required to file a DBA.

Which Products Are Regulated by the Government?

• Food
• Beverages
• Drugs
• Firearms
• Alcohol
• Health and wellness products or services
• Personal services
• CBD-based products

You Sell to International Customers

Countries that you sell to (other than your home country) might require international sellers to be registered with a DBA or have a business license. You’ll need to check with each country to know their requirements.

Do I Need a Business License to Sell on Shopify?

It depends. As is the case with a DBA, you generally don’t need a business license to sell on Shopify. Shopify allows individuals and sole proprietors to use their e-commerce and online small business services, whether or not they have a business license. That being said, there are two situations where you might need a business license.

The first situation exists if you want to sell a regulated product or service. Second, there might be a local law or regulation that requires you to have a business license. In other words, even if Shopify doesn’t require a business license, there’s a chance a law requires you to have a business license.

In case you need a DBA to sell something on Shopify, there’s a chance you’ll also need a business license to do so as well.

When Does my Shopify Name Need to Match my Business Name?

Your Shopify name doesn’t have to match your business name. But if it doesn’t, you’ll probably need to file a DBA. Put another way; your Shopify name must match your business’ legal name if you decide not to file a DBA.

Can a DBA Protect My Webshop’s name? 

No, it can’t. Filing a DBA doesn’t convey any legal protections to your business’ name in the sense that it can stop someone else from taking your webshop’s name. If your Shopify storefront is “Acme Cooking Supplies” and you file a DBA for that name, in certain situations, someone else can still take it and use it for their business. If you want to protect your webshop’s name, you should consider trademarking it.

Conclusion

Using Shopify is a convenient way to sell your goods and services online. As long as your carry out your business using your business’ official name to sell non-regulated products and services, you don’t need to file a DBA.  But if you want to conduct business using a name different from your business's legal name, you’ll likely need a DBA. You may also need a DBA if you use Shopify to sell products or services that are regulated by the government.

If you’re only using it as a URL for your company’s website, no DBA filing is required. But if you’re using your website’s domain in other aspects of your business, then you’ll most likely need a DBA for it.

There may also be other situations involving your company’s website address where you’ll want to consider options that don’t involve creating a DBA.

When do I Need to File a DBA for a Website Domain?

You need to file a DBA when you’re using your website domain in other contexts besides just a website URL. For example, let’s say your business is officially registered as Acme Design, LLC. But when you tried registering “acmedesign.com” and other variations, those domain names were already taken. As a result, you ended up establishing your website address as “smithdesignllc.com.”

If the only time you use the name “smithdesignllc.com” or “Smith Design LLC” is with your domain name, you do not have to file a DBA for it. But if you use that name in your marketing materials, social media accounts, advertising and so on, then you would need to register a DBA for your website domain.

When Does my Domain Name Need to Match my Business Name?

It doesn’t. You can create any domain you want, as long as it hasn’t been taken by someone else. Many businesses want their website’s domain to match (or closely match) their business name, but it’s not a requirement. But as mentioned above, it’s okay to have a website domain that doesn’t match your business’ official name, but only if you don’t use the website domain to carry out your business. Once you begin using your online domain address as if it were your business name, you’ll need to register it as a DBA.

An alternative to registering your domain name as a DBA is to change your business’ official name to match your domain name.

If My Business Has Multiple Domains - Do I Need a DBA for Each One?

No, you do not. But if you want to use any of those domains as if they were your business’ official name, you need a DBA for the domain you use to operate your business.

For instance, let’s assume your business’ official name is Mary’s Consulting Solutions, and your business has the following domains:

• marysconsultingsolutions.com
• officemanagementtechniques.net
• consultinghelpers.biz

The first domain can be used however you want, wherever you want, without getting a DBA for it. The second and third domains only need DBAs if you use them to advertise, when communicating with clients, or any other notable aspect of your business’ operations. If a domain is only used as a domain address, a DBA is not required.

Think of a domain as a mailing address. No business is required to register a DBA as “123 Park Ave.” simply because that’s the business’ physical address. 

Can a DBA protect my website’s name?

No, it cannot. The only way to protect a website’s name from others legally taking it is by registering it with a registrar. Simply getting a DBA that’s the same as your website’s URL won’t stop someone else from using the URL if you didn’t properly register it with a domain registrar. Getting a DBA also won’t stop hackers or scammers from trying to steal your domain or take control of it.

Sometimes, others might indirectly try to get your domain name by registering domain names that are very similar to yours. So if your business domain is “readysteadygo.com” other people might try to register, “redysteadygo.com” or “readystedygo.com.”

One way to prevent this is to register your domain name and company name as a trademark with the United States Patent and Trademark Office (USPTO). Doing this may prevent others from utilizing domain names similar to your domain name or identical to your business’ name.

Another option is to preemptively register those alternative domain names so you own and control them before someone else can.

Conclusion

You’re not required to get a DBA for a website domain. But you might need to if your domain name is different from the official name of your business and you’re referring to your business using its domain name. Also, if you already have a domain name and want to protect others from using it, filing a DBA for it won’t help.

Sometimes this is even required by law. Sometimes it's just to make sure the person seeing it knows it's a registered business he can trust. 

Writing LLC on business cards is mostly recommended, but obviously, “LLC” doesn’t need to be written everywhere. It is, for instance, quite common not to have an LLC in the logo.

Do I need to mention LLC on my business card?

Yes, a business name is recommended to include “limited liability company,” “Company,” or “Limited” on the business card. If you don’t include the word “LLC” or “Inc.” on the business card, it can be problematic. For example, a business card with only the company name might trigger unintended repercussions for the company.

LLC Business Card Examples:

1. Location of LLC: Most attorneys recommend including the full legal name indicating the business is a registered legal entity. From a legal perspective, when you use the full business name, it indicates that the company is an LLC. 
2. LLC and Logos: Some attorneys claim that including the LLC as a designator is being used on everything, especially the logo. But that is *not* a requirement, naysayers may claim including the LLC designation with the logo may be purely aesthetic or marketing strategy. 

What is a DBA?

DBA means “doing business as” by definition. DBA can be your business’s assumed, trade, or fictitious name. Using an LLC and DBA name means they can be different or the same. Both DBA and LLC names permit you to do business under a specific name as well. But it is important to realize that an LLC is a business structure, and a DBA is merely a registered nickname for an established business.

An LLC is a separate legal entity with or without a DBA business name. A DBA is not a separate legal entity but can be if registered. In conclusion, a company can operate with another name than the one listed.

DBA vs. LLC

A DBA does not replace an LLC. Also, when a business owner uses an LLC then a DBA is not required. The reasons to use a DBA or LLC are different.

You can use a DBA over LLC for various reasons depending on your need. For example, it could be tax reasons or based on how many people your business employs, or if a company wants to be able to trade on the open market.

In summary, using a DBA compared to an LLC may not be a replacement. Using a DBA may be better from a marketing standpoint. If you need to use an LLC and a DBA, it is possible to operate numerous DBAs under a sole LLC. In the end, you need to use an LLC. 

What are the allowed forms to write LLC?

LLC forms can include the different ways you can set up your LLC. Every LLC is different depending on your business needs. Each LLC can be listed according to each business and state law as well.

In general, a company’s name and words for designation like “limited liability company,” as well as abbreviations like 

1. LLC
2. LLC Limited
3. L.L.C.
4. Ltd.
5. Limited Liability Co.
6. Limited Liability Company

In what other cases do I need to mention LLC in my company name

Whether you are doing a contract, invoice, contract, legal record, tax return, or other documents, you need to include “LLC.” In general, every state has its own requirements. Usually, most LLC requirements are similar and vary minimally. However, LLC needs to be stated and included in the following:

• invoices
• contracts
• leases
• legal records
• tax returns
• letterhead
• official documents

In what cases do I not have to use LLC?

A logo card is not a requirement for using LLC within the name. Using an LLC is recommended in many places for your business's trustworthiness and merit. However, here are the exceptions that show how effective an LLC can be.

When a business name is not so memorable than an LLC helps. Because it makes it easier for customers to remember it. A logo and LLC are best when they need your services or products.

1. Logo on Product
2. Banner on Your Store
3. Logo on Your Website
4. Business Cards
5. Correspondence

It is best to include the LLC in your forward-facing customer or client correspondence. Thus, logos and more are strongly recommended for an LLC. Deciding not to use your logo makes things more problematic. Therefore, it is best to include an LLC  instead of your full legal name.

Additional requirements when writing your LLC name

When listing an LLC, there is no legal rule for showing it. However, consider punctuation when naming your business.

You need to use the letters “L” and “L” and “C” after your company’s name. Other versions of including LLC in a logo include a comma after the company name and then “LLC”.

Comma before LLC:  There is no rule, so you can add a comma before LLC. up to you. So, a comma between the title of your business and the corporation or LLC designator is fine. 

Period after LLC: In regards to period or any punctuation placement, there is no firm rule.  So, when it comes to placing a period after the letters LLC you have options. 

Consistency with LLC: Consistency when using a company name is key. For example, if you decide to include a comma, then it needs to be used in everything going forward. In summary, everything listed with this LLC, like filings, paperwork, and documents, needs to be consistent. 

You can put a period after each letter, after the last letter, or you can decide to include or leave out the period. In terms of what is accepted, each option is grammatically correct.

Advantages of Showing LLC in a Business

Using the "LLC" or LLC designator for your business name is greatly beneficial. Why? This means that future clients and the public have seen that a business has taken the steps to register an LLC. 

Using an LLC in a business ensures and alerts people that a company is a distinct legal entity. In conclusion, legally, the LLC makes clear that anyone is dealing with a business entity and not with you personally.

• Greater privacy.
• The desire to run a business with a more unique and/or memorable name.
• The need to open a business account with a bank.
• Plans to open a new or different line of business, but not wanting to create a brand new business legal entity to do so.
• Increase the level of credibility or professionalism of a business.

Read on to learn more about DBAs and to see if it makes sense for you to get a DBA name for your business.

What Is a DBA?

A DBA is a business name that’s different from a businesses’ legal or “true” name. For example, a business might be incorporated as “John Smith Research, Inc.” but might do business as “Smith Aeronautical Design and Development.”

A company can use its DBA name in practically all aspects of its business, from signs outside a store to a website domain to company logos and letterhead. A DBA is also popular with franchise businesses, like fast food restaurants and hotels. A Marriott or McDonald’s is the DBA name, but the person or business that owns and operates the franchise location will probably be a local small business entity, such as “Clark Restaurants Co.” or “Jones Hospitality Management, LLC.”

When Do You Need to File a DBA for Your Business?

In most situations, having a DBA is optional. Whether you’re incorporated or running a sole proprietorship, using a DBA isn’t required. However, there are certain situations where you’ll want a DBA designation.

First, it’s when you want to run your business with a name that’s different from your legal business name. If your company’s official name is “Brown Roofing Services, Inc.” and you operate as “Brown Roofing Services, Inc.” then you don’t need to file or register a DBA. But let’s say despite this official business name, you want to operate as “Brown Roofers.” In that case, you’ll want to register your DBA name.

This registration or filing requirement exists because many state or local laws require any business that operates under a name that’s different from their legal name to register the DBA with the appropriate government authority, such as a county clerk’s office or business department.

Second, you want your DBA name to be legally recognized in your business dealings. For example, if you enter into a business contract with a supplier and don’t have a properly filed DBA name, you’ll need to use your business’ legal name instead to create a valid contract.

Who Can Create a DBA?

For the most part, anyone can create a DBA. This includes sole proprietors, partnerships, LLPs, LLCs, and corporations. You can also create as many as you’d like, although you’ll need to register each one.

Sole Proprietorships and Partnerships

If you’re trading as a sole proprietorship or a partnership, the owner (or owners) and their business are the same entity. Sole proprietors and partnerships might want to file a DBA to operate under an assumed name, for example, if two contractors, Brown and Smith, want to trade as Alpha Building Contractors.

Because sole proprietorships and general partnerships are unincorporated, they need not file entity formation papers or a business entity name with the state. Still, they do have to obtain the required business licenses and permits. 

LLCs and Other Legal Entities

Corporations (both S and C corporations), limited partnerships, and LLCs technically don’t need to file a DBA name unless the specific state, city, or county requires it. This is because LLCs and corporations do business under the name that appears on their formation documents. However, in some instances, these business entities may need a DBA to expand their business and operate that expanded part under a different name than the registered name. 

Franchises

While franchise owners are not required to obtain a DBA, they can do so to establish the identity of their local business. For example, if you purchase a Pizza Hut franchise, you’ll typically register as an LLC or corporation. You’ll then form the franchise under the LLC or corporation – for example, ABC Business LLC – but your DBA will be “Pizza Hut” to inform your state that you’re doing business as the franchise you joined.

Pros and Cons of filing a DBA Rather Than Forming Another LLC or Corporation

A common question many LLC and corporate business owners have when it comes to creating a DBA is deciding whether they should create another LLC, corporation or business form instead of registering a DBA. Below are some of the advantages and disadvantages of using a DBA instead of creating a different business form.

Pros and Cons of filing a DBA as a sole proprietor

As is the case with LLCs and corporations, doing business as a sole proprietor doesn’t require you to have a DBA. But it offers several advantages, such as having a more professional business name and being able to do business with a name other than the one your parents gave you. However, these benefits also come with creating an LLC, corporation, or other formal business structure. Despite these similarities, there are some benefits and drawbacks to getting a DBA name instead of creating an LLC or corporation.

Does a DBA Provide Privacy?

Yes, but only to some extent. After you register your DBA name, you don’t need to use your real or legal name when carrying out your business operations. So your average customer or business partner may not know that when they’re talking to you on the telephone or emailing back and forth with you, they’re dealing with the owner of the company. 

But if someone wants to do some research into who is the business owner of an entity that uses your DBA name, they can probably figure it out. The only question is how much digging they’re willing to do.

Depending on what state you’re searching in, anyone can type in your DBA name at the department of state or other appropriate government website and find out who the owner is of a particular DBA name. One such state is Florida. But you can add another layer of privacy protection by creating an LLC or corporation and listing that LLC or corporation as the owner of the DBA name. With enough effort, though, most people can eventually figure out who the true owner of a DBA name is.

How Do I Register a DBA?

The exact rules and requirements concerning DBA’s will depend on state and local law. But generally speaking, you need to complete the following steps:

1. See if your DBA name is already taken. You can do this by going to your state’s DBA name database and see what’s already been registered.
2. Contact the relevant government agency. This could potentially include your secretary of state or your state’s department of revenue. There’s also the possibility that there’s a government agency or department at the county level where you’ll register your DBA name.
3. Following the specific DBA name filing process for your jurisdiction. What this entails will vary but almost always includes having to provide information about your real business name, your desired DBA name, the location of your business, and the identity of the business owner(s).
4. Pay the registration fee.
5. Publish your DBA name in the appropriate local newspaper. Not all states require this, but its purpose is to give the general public notice about your new name and how it’s related to your business’ official or legal name.

After you register your DBA, you’ll usually have to renew it at least every few years. This will also require you to pay a renewal fee which shouldn’t be more than the cost to register the DBA name.

What do I need to register a DBA?

To file a DBA, you will have to provide the following basic information and pay the necessary fee:

• Publicly known name of the business
• Date of company formation
• Nature of business being carried on i.e., the products or services provided
• The name(s) of the owners or that of the legal entity that owns the company
• Some states may require the signature of a notary public

Filing a DBA is mostly straightforward and is easier than registering an LLC. The rules to file a DBA vary from state to state. It also depends on the type of business you’ve registered.  You may have to file your DBA either with the state or with the county and may be subject to additional requirements such as publishing your DBA in a newspaper. These requirements are tabled below per state:

How Much Do DBAs Cost?

The exact cost depends on where you’re registering your DBA name, but you should expect it to cost anywhere from $5 (in Washington State) to $150 (in Illinois if you’re a corporation registering a DBA name). Most other states or local jurisdictions will be somewhere between $20 and $55. You’ll also have to renew your DBA name registration every few years (often five), which normally requires a fee equal to (or less) than the initial registration fee.

Are DBA Names Protected?

Yes, but usually only to the extent that other people in your state can’t get a DBA name that’s the same as yours. In some states, like Alaska and North Dakota, your DBA name will be protected from not just other people trying to register their DBA names but also business name registrations in general, such as LLCs or corporations. If you want to make sure you have exclusive rights to your DBA name, one option is to register it as a tradename.

Can you open up bank accounts or get credit cards on behalf of a DBA?

It will depend on the specific rules and policies of the financial institution, but for the most part, the answer is yes. This is one of the main benefits for a partnership or sole proprietor to register a DBA name. When opening the account, you should expect the bank to ask for proof that your DBA has been properly registered. This might require you to provide a copy of your DBA filing or certificate showing your DBA name has been registered.

Final thoughts

A DBA can be a powerful tool and an important part of your business strategy. It affects how you transact business and gives you a lot of flexibility and credibility. However, there are also disadvantages specific to each business type. The two biggest disadvantages of a DBA are the fact that it does not guarantee the exclusive use of your chosen trade name and it offers no personal asset protection for sole proprietors and partnerships. 

It’s often the case that registering an LLC is the better option as the process and similar and the costs are comparable. However, this will depend on your specific requirements, your business type, and your state or county’s requirements. It’s always advisable to consult with a lawyer before making any business decisions.