Introduction
Businesses come in all shapes and sizes, and one key factor to consider when setting up a business is choosing the right business structure. One of the most important steps in setting up a business is to obtain a Doing Business As (DBA) name. A DBA name allows the business to operate under a different name than the legal entity of the business. This article will explain what a DBA is, why it is important to have a DBA name, and how to go about obtaining a DBA name.
What is a DBA Name?
A DBA name, also known as a “fictitious business name” or “trade name”, is a name used for a business that is different from the legal name of the business. A DBA name allows a business to operate using a name other than the name of the legal entity of the business. For example, if a business is legally registered as ABC Corporation, but the business wishes to operate under the name “XYZ Enterprises”, then ABC Corporation would need to register a DBA name with the appropriate state or local government.
Why is a DBA Name Important?
A DBA name is important for a variety of reasons. First, a DBA name allows a business to operate under a name that is more recognizable to customers. For example, if a business is legally registered as ABC Corporation, but the business wishes to use the name “XYZ Enterprises”, then customers may be more inclined to do business with XYZ Enterprises rather than ABC Corporation.
Second, a DBA name allows a business to use multiple names without having to register each name separately. For example, if a business is legally registered as ABC Corporation, but the business wishes to use the names “XYZ Enterprises” and “ABC Enterprises”, then the business can use both names with just one DBA registration.
Finally, a DBA name also allows a business to use a name that is not already in use by another business. This is important because it prevents confusion and potential legal issues that could arise if two businesses had the same name.
How to Obtain a DBA Name
The process for obtaining a DBA name will vary depending on the state or local government where the business is registered. Generally, the process involves filing an application with the appropriate state or local government, which will then review the application to ensure that the DBA name is not already in use by another business.
Once the application is approved, the business will also need to publish a notice in a local newspaper for a certain period of time. This is done to ensure that the DBA name is not already in use by another business. After the notice period has passed, the business will be able to use its DBA name.
Conclusion
A DBA name is an important step in setting up a business, as it allows a business to operate under a name that is more recognizable to customers, allows a business to use multiple names without having to register each name separately, and prevents confusion and potential legal issues that could arise if two businesses had the same name. The process for obtaining a DBA name will vary depending on the state or local government where the business is registered but generally involves filing an application with the appropriate state or local government and publishing a notice in a local newspaper.
Updated January 30, 2023