DBA designation

First and foremost, Doing Business As or DBA is a designation that can be used by any legal entity be it corporate or individual to operate a business under a name that is not their legal name. 

We too often jump to the conclusion that DBA is only associated with individuals who operate a small business and are not incorporated.  In reality many corporations register under a DBA to do business under a “Brand” name.  

State and local governments usually require companies and individuals to register any alternate names under which they do business. Called a Doing Business As (DBA) filing, this action allows the company or individual to legally operate under a trade name, also known as an "assumed" or "fictitious" name.

By having a DBA name, it's possible for sole proprietors and general partners to do business using a name other than the owners' personal name. In the case of  c corporations,  s corporations, limited liability companies (LLCs), Sole Proprietorships, nonprofits and some other formation types, a DBA filing allows them to do business under a name different than the one that appears on their original incorporation documents.

A few practical examples of how DBA names are used:

• Sole proprietors and general partners often choose to operate under a DBA name. For example, business owner John Smith might file the DBA name "Smith Roofing."
• Corporations and limited liability companies (LLCs) may register alternate names for specific lines of business. For example, Helen's Food Service Inc. might register the DBA name "Helen's Catering."

By registering a DBA name for your business, you could enjoy:

• better visibility for marketing purposes
• enhanced credibility among suppliers and customers
• an easier time opening business bank accounts
• the ability to transact business under a different name on the Internet

We must obtain DBA registration confirmation in order for a business receiving checks made payable to the DBA name to negotiate the checks they receive.  The registration process ensures that no two businesses operate under the same name although it does not prevent very similar names from being used which can cause headaches and very real risks to financial institutions.