What You Need to Know About DBAs
If you’ve ever wanted to operate your business under a name different from your legal business name, you’ve probably come across the term “DBA.”
DBA stands for “Doing Business As.” It’s sometimes called a trade name, fictitious name, or assumed name. Registering a DBA allows your business to present itself to customers with a name that’s more marketable or descriptive, without having to form a brand-new legal entity.
Why Businesses Use DBAs
- Branding: A landscaping company called “Smith Enterprises LLC” might want to operate as “Evergreen Landscapes.”
- Flexibility: One business entity can operate multiple DBAs if it runs different product lines or services.
- Banking & Contracts: A DBA allows you to open accounts, accept payments, and sign contracts under your trade name rather than your legal entity name.
How to Register for a DBA
DBAs are registered at the local government level — usually with your county clerk’s office. The process typically involves:
- 1.Checking the availability of your desired name.
- 2.Submitting a DBA application form.
- 3.Paying a filing fee (amount varies by location).
- 4.In some states, publishing a notice in a local newspaper.
Don’t Forget About Renewals
One easy mistake is thinking your DBA lasts forever. In reality, DBA renewal requirements vary widely:
- Some states require renewal every 3 years, others every 5 years, and a few have different rules altogether.
- Fees also vary — from a nominal $10 to over $100.
That means it’s important to track your DBA expiration date so your right to use your business name doesn’t lapse unexpectedly.