In the business world, the public-facing name of your business is your DBA, which stands for “Doing Business As.” You might need a DBA if you’re a sole proprietor and don’t want to do business under your personal name. Or you might need a DBA to help grow your current operation.
It can be hard to run your business while keeping up with all the legal necessities and details that are required to operate. LegalShield® Small Business Plans give you access to affordable legal guidance and consultations on several business matters.
To help you get started with a DBA, we’ve provided a basic overview of what DBAs are, how they differ from LLCs, and how businesses apply for and use them.
A DBA is a name registration that lets you run your business under a name other than your personal legal name or legal business entity. It's also often called a fictitious name, trade name, or assumed name. Often, it’s the name publicly associated with your business or brand. A DBA does not create a new business structure or legal entity.
For example, say Jane wants to open a flower shop called Rosie Days as a sole proprietor. She would need to get a business name and register the DBA to open bank accounts under it and not her own. For more protection, she might also register her company as a Limited Liability Corporation (LLC) under Jane Doe LLC d/b/a Rosie Days.
The LLC creates a legal business entity, while the DBA simply allows Jane to do things, like banking and marketing, as Rosie Days. Sole proprietors, LLCs, partnerships, and corporations can all apply for DBAs. Not all banks will open an account as a DBA, so you will want to check the requirements before filing for your DBA.
A business might need or want to file for a DBA for many reasons:
Knowing what you need for your business can be confusing. A LegalShield Small Business Membership gives you consultations on an unlimited number of business legal matters with a provider law firm. You can ask questions about DBAs and get answers for a fraction of the typical law firm hourly rates.
A DBA doesn’t create a separate business entity, so it doesn’t offer tax benefits or personal protection from legal liability. A DBA is merely a registered name you use to do business, nothing more.
Without a legal business structure, like an LLC, businesses have less tax flexibility. Sole proprietors report business taxes on their personal income tax return. And if the business gets sued or owes debts, the owner may be personally responsible.
Additionally, a DBA may not prevent other businesses from using your name. To legally protect your business name and other brand elements, you may need to pair the DBA with a trademark. Getting a trademark requires a different filing process than getting a DBA.
A DBA isn’t the same as an LLC. The main difference between an LLC and a DBA is that an LLC is a legal business structure. As such, it can provide legal protections that a DBA can’t.
Forming an LLC can give a business more tax options. It can also protect business owners from personal legal liability or personal responsibility for business debt.
Rules for DBA filing typically vary significantly by state, county, or city. So, the best way for you to file will usually depend on your business's location and its current legal structure. Some tasks you may need to take on:
A lawyer in your area could give you more details about DBA filings where you live. An affordable LegalShield Subscription Service pairs you with a provider law firm that can answer business legal questions.
Getting a DBA can benefit many types of small business owners.
Whether you’re starting a business or growing, you can get affordable legal help with a LegalShield Small Business Plan. You can ask provider lawyers about issues like DBAs and applying for a business license. Adding a LegalShield Business Plus Supplement gives you even more resources and expanded consultations.
Wherever you are on your business journey, a LegalShield Membership has something to offer. Get help with legal matters around taxes, debt collection, and business contracts.
Businesses may need a DBA and an LLC if they want to do business under a different name than the LLC. An LLC might also need a new or additional DBA to branch out under a new name.
No, a DBA doesn’t count as a business license. A business license grants permission to operate from a state or federal agency. A DBA doesn’t do this. All a DBA does is register a business name.
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