Doing Business As (DBA) is a declaration used by a company when it operates under a name different from its legal, registered name.
This is often used by sole proprietors, partnerships, and even corporations that wish to conduct business under an alternate name without creating a new legal entity.
For example, if you start a business called John Doe Enterprises but want to operate a website under the name Best Widgets Online, you would file a DBA for Best Widgets Online.
Filing a DBA allows you to conduct business, open bank accounts, and advertise under an alternative name, providing flexibility in branding and marketing.
Its essential for businesses that want to present a brand aligned with their products or services without the need to form a new company.
Each state or country has its own rules for filing a DBA, and its typically done through a local government agency or the state secretary’s office.
Failure to file a DBA when required can lead to legal penalties and prevent you from enforcing contracts. Remember, a DBA does not provide legal protection for the name itself or limit liability, as would the formation of a corporation or LLC.
It simply allows businesses to operate under a name that best suits their operation while staying compliant with legal requirements.