If you’re running your business, you probably don’t want to operate under your legal name. It might not attract customers or make your operations memorable enough. You can boost brand recognition by using a DBA (doing business as) name. Learn more about trade names and how to register one below.
Is a Trade Name the Same as a DBA?
A trade name and a doing business as (DBA) name are the same thing. It’s used if you’re doing business under a name different from your business’s legal name. Most states and some counties require you to register any fictitious name so customers and other companies can identify you.
As a reference, people call a DBA registration by other names:
- Assumed Name Statement
- Assumed Business Name Certificate
- Fictitious Name
- Fictitious Business Name (FBN)
- Fictitious Business Name Statement
- Trading Name
A trade name is used by sole proprietors, partnerships, LLCs, and corporations. If you’re a sole proprietor, your business name is your full legal name by default. For example, Adam Smith can only operate his business using his personal name or the name of his corporation or limited liability company. If he wants to operate a bakery under the name “Awesome Cookies,” he will need a DBA or trade name registration because his actual legal name does not appear in the business name.
Similarly, if you are part of a partnership, your default business name is all of your actual legal names. For example, Adam Smith and Betty Thompson could operate a business called “Smith & Thompson.” However, they’d need a DBA registration to operate a food truck called “Tasty Tacos” because their legal names do not appear in this name.
Finally, if you own an LLC or corporation, your default business name is the legal name officially registered with the Secretary of State. Legally registered companies must use a corporate suffix like Co., Inc., or Ltd. In contrast, a DBA registration allows you to use a simpler trade name like “Fancy Flowers” instead of the official legal name.
Do I Need a DBA to Conduct Business?
A DBA isn’t always necessary to conduct business, but you may need it in certain situations. For example, you must have a DBA if you want to operate and conduct marketing activities under a different name than your business’s legal name.
You may also need to register a DBA name if your bank requires it to open an account. If you want your bank account to be in the name of your business (for example, “Sunny Scoops Ice Cream” instead of “Kaitlyn Sanvers”), the bank will need proof that you legally operate under that name. A DBA provides such proof.
A DBA can also be helpful if you plan to expand your business and operate under different names. For instance, you can follow the example of Hilton Worldwide Holdings, Inc. Hilton Worldwide Holdings, Inc. is the legal name of the parent company, but it also operates separate hospitality companies with trade names like DoubleTree, Embassy Suites, and Waldorf Astoria.
Benefits of a DBA
Explore the benefits of operating under a fictitious name:
- Improve branding: You can use a name that’s more appealing or descriptive than your legal business name. This can help with branding and recognition in your marketing efforts.
- Run multiple lines of business: If you have one LLC or corporation, you can register multiple DBAs for different business scopes instead of forming separate companies.
- Accept payments: If you open a business bank account under your DBA, you can accept payments made to your DBA, making transactions appear more legitimate to customers.
Note that a DBA does not offer liability protection. If your business goes into debt under a DBA, your personal assets may be at risk if the business has not been properly established. Ensure that you write an LLC operating agreement or equivalent contract for your business structure to protect yourself.
How to Register a Trade Name
Once you register your business with the appropriate body, you can follow these steps to register a trade name.
Step 1 – Check for Name Availability
Start by searching your state’s business registry and a national database like the United States Patent and Trademark Office (USPTO) for business names you want to use. You can also conduct a general Google search to see if the name appears online. If the name you want is already in use, consider selecting another name.
Your state’s Secretary of State or equivalent office will likely reject your application if you choose a name that’s too similar to that of an existing business.
Note that trade names don’t have the same legal protection as trademarks. When you get a trade name, there’s no guarantee that it will be exclusive to your business. However, it’s good practice to choose a unique name to prevent confusion and liability issues.
Step 2 – Fill Out the Correct DBA Document
Once you decide on a unique name, you should fill out the current DBA document for your entity type. A basic trade name registration document or DBA registration should contain the following information:
- The name of the business owner (and any co-owners)
- The business’s legal name
- The business’s structure
- The company’s place of operation (physical address)
- The company’s jurisdiction of registration
- The proposed DBA
- The goods, services, and lines of business that will be provided under the DBA
Depending on your jurisdiction, you may need to get the DBA document notarized. Check your area’s requirements to determine if notary acknowledgment is required.
Step 3 – File With the Appropriate Office
File your DBA document with the appropriate office. Depending on your area and business structure, the right office might be the Secretary of State, the Department of State, or a local county clerk’s or recorder’s office. You may have the option to file in person or online. Be prepared to present payment, as it may be required for processing the DBA registration.
As part of the filing process, you may need to publish the name in a local paper to inform the public. For example, Florida law requires that the name you register must be advertised at least once in a local newspaper. Check the requirements in your area to ensure compliance.
Renewing Trade Names
Trade names don’t last forever. Check your area’s requirements to determine how often you need to renew yours. They typically last between one and five years before you need to register it again for continued use.
Step 4 – Consider a Trademark
DBAs or trade names are a good starting point, but you may consider getting a trademark to seek further protection. Trademarks protect your brand nationally and provide stronger legal recourse, while a DBA only gives you the right to operate under a name at the state or county level.
Consider applying for a trademark through the USPTO. Once you have a trademark, you can limit its use and grant restricted use with Legal Templates’s licensing agreement.
