When Your New Business Needs a DBA (Doing Business As)

So you received your state business license, now do you need to get a DBA? As you navigate the exciting world of entrepreneurship, you'll encounter various legal and administrative hurdles. One such question you might have is: Do I need a DBA for my business?

This in-depth guide will explain everything you need to know about DBAs, from when they're necessary to how to obtain one.

What is a DBA and Why Does it Exist?

DBA stands for "Doing Business As." It allows a business entity to operate under a name different from its legal name. This is particularly helpful for businesses with long or complex legal names or those wanting a more catchy brand name for marketing purposes.

Imagine you form an LLC (Limited Liability Company) called "Awesome Gadgets LLC." While this is the legal name you file with the state, it might not be the most memorable name for your customers. You could choose a more customer-friendly name like "The Gadget Emporium" as your DBA.

Here's why DBAs exist:

• Clarity: They allow businesses to operate under a more user-friendly name.
• Branding: You can create a distinct brand identity separate from your legal name.
• Multiple Businesses: A single LLC can operate multiple ventures under different DBAs.
  

Using Your LLC Name: No DBA Needed

If you've formed an LLC and plan to operate solely under that legal name ("Awesome Gadgets LLC" in our example), you typically don't need a DBA.

However, things get trickier if you decide to shorten your business name for marketing purposes. Dropping the "LLC" and using just "Awesome Gadgets" might require a DBA, depending on your state's regulations.

The State of DBAs: A Patchwork of Regulations

Here's the catch: DBA regulations vary significantly across the United States. Some states require DBAs at the state level, while others handle them at the county or city level.

Here's a breakdown of how DBAs are typically handled:

• State Level: These states require you to file the DBA with a central state agency.
• County/City Level: In these locations, you'll file your DBA at the same office where you obtain your business license.

Filing Frequency: Filing requirements also differ. Some states require annual DBA renewals, while others allow them to be valid for 5 years. It's crucial to stay updated on your state or local jurisdiction's regulations.

How to Get a DBA: A Step-by-Step Guide

The process of obtaining a DBA varies slightly based on your location. However, here's a general roadmap:

1. Check Availability: Many states and counties offer online databases to search for existing business names and DBAs. This helps you confirm your desired name is available. (Note: Some states require a separate "name availability" filing before registering your DBA.)
2. File the Application: Most jurisdictions offer online DBA applications for convenience. However, some locations might require in-person filing.
3. Pay the Fee: Expect to pay a filing fee when registering your DBA.
4. Publish the Notice: Some states require publishing a legal notice in a local newspaper announcing your DBA registration.
5. Maintain Your DBA: Remember to renew your DBA if your state or local area requires it.

Additional Considerations

• Fictitious Business Name (FBN): Some states use the term "Fictitious Business Name" (FBN) instead of DBA. Both serve the same purpose.
• DBA Name Search Accuracy: Online availability searches might not be foolproof. Some states might require a formal name check before final approval.
  

Our Take Away

Having a DBA or Fictitious Business Name is very important for brand identity and recognition. While it can be tricky to determine where to file paperwork to obtain one and require some research, it is often a low cost step with long term benefits.