What is a DBA (Doing Business As)?
Learn what a DBA is, when you need to file one, and how operating under a trade name affects your business banking and financing options.
A DBA (Doing Business As), also known as a trade name, assumed name, or fictitious business name, allows you to operate your business under a name different from your legal name or your company's registered name. It does not create a new legal entity — it simply registers an alternate name for conducting business.
When Do You Need a DBA?
You typically need a DBA in these situations:
- Sole proprietors: If you want to operate under any name other than your personal legal name
- Partnerships: To use a name other than the partners' combined names
- LLCs and corporations: To operate under a name different from your registered business name
- Adding brands: If your existing business wants to market products or services under a different name
Example
If John Smith wants to run a landscaping business called "Green Valley Landscaping," he needs to file a DBA. Without it, he would have to do business as "John Smith."
DBA vs. LLC
A DBA is not a business entity — it is just a registered name. It provides no liability protection, does not affect how you file taxes, and does not create a separate legal existence for your business.
An LLC, by contrast, is a legal entity that provides liability protection and may offer tax advantages. Many business owners form an LLC and then file a DBA if they want to operate under a different name than their LLC's registered name.
How to File a DBA
DBA filing requirements vary by state and locality:
- File with your county clerk, state secretary of state, or both (varies by state)
- Pay a filing fee (typically $10-$100)
- Some states require publishing the DBA in a local newspaper
- Renewals may be required every few years
- Search existing registrations first to ensure your desired name is available
DBAs and Business Banking
You need a DBA to open a business bank account in your trade name. Banks require proof that you are authorized to do business under that name.
When applying for financing, lenders may ask for your DBA certificate along with other business documentation. Having a properly registered DBA demonstrates that you are operating legitimately.
DBAs and Business Financing
A DBA alone does not affect your ability to get financing, but it is often part of the documentation lenders request. More importantly:
- A DBA does not provide liability protection — personal guarantees are still personal
- Business credit built under a DBA may not transfer if you later form an LLC or corporation
- Lenders evaluate the underlying business structure, not just the trade name
- Having a DBA shows you have taken basic steps to formalize your business
If liability protection is important, consider forming an LLC instead of just filing a DBA. You can still file a DBA for your LLC if you want to operate under a different name.
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Read more →Important Disclosure
Not Financial Advice: The information provided in this article is for general informational purposes only and does not constitute financial, legal, or professional advice. You should consult with qualified professionals before making any financial decisions.
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