What is a DBA?
A DBA, or Doing Business As, is an optional registration that lets you operate your business under your company's trade name or fictitious name, when it is different from the company's registered name. For example, suppose John Doe registers an LLC in the USA for an e-commerce business under the name "John LLC". However, he wants to use the trade name "Doe Foods" to invoice clients and suppliers, write checks, sign contracts, etc. In that case, he will need to register a DBA.What is a DBA used for?
Many companies and entrepreneurs about to start a business should consider having a DBA, mainly because it offers numerous benefits:Privacy
Most people want to keep their business identity separate from their personal life. If you are wondering whether to use your personal name or a DBA, choosing the latter lets you promote the business without compromising your privacy, since your personal name is kept out of routine business transactions.Brand identity and marketing
In addition, using a DBA makes it easier to build a brand identity. From a marketing perspective, a DBA gives you a clear name to promote the product or service you offer.Greater legitimacy
Creating a DBA adds credibility to the business. The good news is that it doesn't require a substantial investment, just a good dose of creativity.Expansion and customization
On the other hand, a DBA makes it easy to adapt the business to each location. Suppose there are several food stores in different states. Each one can carry the name of its state or city.Opening a bank account
Several banks require sole proprietorships and partnerships to have a DBA in order to open a business account.When do you need a DBA?
Although having a DBA may sound appealing, the truth is it isn't always necessary, since it depends on several regulatory factors and preferences.- Sole proprietorships and partnerships: They need a DBA if they use a name other than the full legal name of the owner or of one of the partners. This is because the owners of these legal structures are the same legal entity as the business (there is no limited liability), which means they use the same name unless they file a DBA.
- Franchises: Although it isn't mandatory, franchisees usually register a DBA to operate under the franchise's brand while keeping a separate legal structure.
- Other legal entities: Corporations and limited liability companies (LLCs) generally don't require a DBA. However, they may choose to file one depending on local requirements or to adopt a business identity different from the name they registered with.
How do you get a DBA?
Getting a DBA is a relatively simple process: you only need to follow four steps:- Research the name you want: make sure the DBA name you have in mind isn't already in use. You can usually search business names on the website of the corresponding Secretary of State.
- Check your state's naming requirements: Each state has its own rules about business names. In general, you can't use words or terms related to banking or government entities.
- Meet the operating requirements: some states may require you to start operating under the DBA name before registering it. They may ask for proof (flyers, invoices, a website, brochures or presentations are usually enough).
- Register your DBA with the Secretary of State or the local government office: you can usually complete the process with an online form or by mailing the documents.
How much does a DBA cost?
The cost of getting a DBA varies depending on many factors: state, county, city, business structure, etc. On average, however, registering a fictitious name costs between USD 10 and USD 100. Some examples:- Wyoming: $100
- California: between $50 and $100
- Florida: $50 + mandatory publication cost (between $50 and $100)
- Texas: $25
- Delaware: $20
- New Mexico: $50
How long does a DBA last?
DBAs are valid for a set period that varies by state, after which they must be renewed. For example, in California they are renewed every 5 years; in Texas, every 10 years; and in New York there is no expiration. In general, a DBA registration is valid for 5 years before it needs to be renewed.Conclusion
Having a DBA, or Doing Business As, isn't just a matter of preference, because it offers multiple advantages that will help you grow professionally and financially. So now you know: figure out which DBA works best for your case and follow the steps to register it and start using it in your daily operations. Get professional help to file your DBA- U.S. business experts
- Legal and accounting team
- Free first consultation
Written by
Ignacio Navarro
Ignacio Navarro is a Certified Public Accountant, founder of Start Companies and a specialist in U.S. companies for entrepreneurs, freelancers and digital businesses in Latin America. With training in international taxation and studies at UCEMA, he advises non-resident clients on forming and maintaining LLCs, opening bank accounts, invoicing, accounting and taxes. His experience combines tax strategy, compliance and practical vision for operating in the U.S. in a simple, organized and professional way.
