In small-business jargon, DBA stands for “doing business as.” It’s known in some states as an “assumed name certificate.” Your DBA is an assumed or fictitious name under which you conduct business.
A DBA is the official, legal recognition of your business. You don’t necessarily need a DBA to do business strictly under your own name, such as John Jones. But if you want a more descriptive name, such as John Jones Lawn Care, then you need a DBA.
A DBA also allows you to conduct business without forming a legal entity such as a corporation, limited liability corporation (LLC) or partnership. For sole proprietors, getting a DBA is the easiest and least expensive way to legally operate under a business name.
However, DBAs can also come in handy if you operate a legal business entity such as an S corporation or LLC. DBAs permit a single business entity to operate multiple businesses without creating a separate legal entity for each business.
For instance, perhaps you own Web Sites Incorporated and you operate five different Web sites, with plans to start five more. Rather than setting up each Web venture as a separate corporation, you can simply use a DBA for each business under your corporation. That will save you expenses and paperwork while still allowing you to promote and market each Web venture individually.
A DBA can also prevent other businesses from using your name. In many instances, a DBA is required before you can obtain a state or local business license.
With a DBA, you can use your assumed business name to:
How to Get a DBA
If you decide that an assumed name is right for your small business, here’s the process you should follow to register a DBA.
1. Create a name for your business
Also create several alternative names. Before you can register a DBA, you’ll have to determine that no other business is using the name. You might find that your first choice is already taken. If so, you’ll have alternative names ready.
2. Confirm the name is available
In some states, DBA registration is conducted with a state agency, such as the secretary of state. In other states, you register your assumed name at the county level, usually with the county clerk’s office.
You can call your county clerk’s office to find out how DBA registration is handled in your locality. You can also often find out how registration is handled by visiting the Web site for your secretary of state. For many states, simply type www.sos.state.StateInitial.us. So, if you’re in Texas, type www.sos.state.tx.us. If you’re in Georgia, type www.sos.state.ga.us. The state Web site should tell you whether DBA registrations are handled at the state or county level.
After you determine where to register your DBA, you must search through the agency’s database to confirm that the business name you want isn’t already taken. These databases may be on computer, paper or microfiche. Searching the databases is free.
3. File your DBA
When you confirm that the business name you want is available, your next step is to complete and submit a simple form. You’ll also have to pay a nominal fee for filing a DBA. The fee generally runs from $10 to $50. Filing your DBA gives you legal claim to the business name.
4. Final steps
After you’ve filed your DBA, some states require that you publish a notice in a general circulation newspaper in your local area. Some states also require that you submit an affidavit to prove that you published the DBA notice. Your secretary of state office or your county clerk’s office will be able to explain the required procedures.
Also be aware that some jurisdictions require you to periodically renew your DBA. Ask about renewal requirements when you file your initial DBA. If you let your DBA lapse, you could lose your name to another business.
Terry M. Blair is a freelance writer specializing in small-business issues
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