Filing a DBA allows you to do business under a name other than your own. Your database administrator is different from your name as a business owner or from your legitimate and registered business name. Indeed, when starting a business, the legal name of the business is, by default, the name of the person or entity that owns the business. That is, unless you register your company as a specific legal entity (more on this below) or if you rename your company and register it with a DBA. Like a sole proprietorship, a company with a general business structure is not registered and therefore does not need to register the name of a business entity with the state. Therefore, partnerships require an RFA application if you wish to operate under a fictitious name that is neither your full legal name nor the names of your partners. If your business intends to use a different alias than yours, you will need to file DBA forms to make it clear to the state and your customers who is responsible for the business and its operations. That`s the reason for these forms: to make sure customers know the name of the owner of the business or legal entity behind the business. DBAs give fictitious names to business units. Sometimes this serves to protect your identity as a business owner if you have a sole proprietorship or partnership that bears your legal name.

For example, Timothy Johnson could serve as “Johnson Interiors” for his interior design consultancy. Instead, a company or LLC is more likely to use a DBA to enter a new line of business or enter a new market. However, when you enter into a contract, the law requires that you use the full legal name of your company instead of the DTA. Business owners who want to limit their legal liability should consider an LLC or corporation instead of a sole proprietorship. An LLC is a separate legal entity and protects individual personal accounts from being considered company assets. Cars, homes, and personal use checking accounts are protected from lawsuit against an LLC. LLC or corporate owners have certain legal protections, such as protecting the owner`s personal property if the business is sued. But if you operate your business under a different name than the one on your incorporation documents that has not been filed, these legal protections will not apply. So, if you are a John`s Cosmetics Inc. are registered and sign a contract with a customer as John`s Skincare Solutions without registering it as a DBA, that contract will not hold. If you are a sole proprietorship or partnership, you must file a DBA if you want your business to operate under a name that is not your full legal name or that of your business partner. This is because sole proprietorships and partnerships are not registered and do not have to file entity incorporation documents or a business entity name with the state.

(However, you still need to obtain the necessary business licenses and permits.) The legal structure of the company that suits you best often depends on your future plans for your business. In many cases, regulations limit the legal name of your business entity and limit your ability to create a business with a catchy name and marketable brand. That`s where DBA registration comes in. About the author: Priyanka Prakash is an author specializing in finance, lending, law, and insurance for small businesses, helping business owners navigate complex concepts and decisions. Since earning a law degree from the University of Washington, Priyanka has spent half a decade writing about the financial and legal concerns of small businesses. So if Laura Smith wants to start a technical repair business, her business will operate under her own name, unless Laura chooses to register her DBA name as “Laura`s Tech Repair Shop.” After registering her DBA, Laura`s full name is not legally linked to her company name. A DBA can be a great way to dip your toe in water and try a new business or product idea without giving it your all. If you`re using a DBA as part of a sole proprietorship or partnership, don`t wait too long after you get a proof of concept to take the next step. Whether it`s starting your LLC or integrating your DBA, building a solid business starts with legally protecting yourself.

When you start a business for the first time, you need to make important legal decisions. But you`re (probably) not a lawyer, and you may not be familiar with all the legal terms and acronyms that are being thrown around, from choosing between an LLC or a sole proprietorship to filing a DBA. Abbreviated DBA or d/b/a, doing business is a term that indicates that the name under which the business or transaction is conducted and presented to the world is not the legal name of the legal entity (or persons) who actually own and are responsible for it. This is often used for brand names or franchises. Filing a DTA is necessary in most states to ensure that companies cannot avoid legal problems by operating illegally under a different name. It is also necessary to provide your DBA names when writing a business plan. However, if you are a sole proprietor and use your own name in your legal business name, such as Sue Smith`s Styling Salon, you do not need to file a DBA form. You do business like yourself. That is not a problem. While a DBA is a quick and easy way to start, grow, and market your business, it doesn`t protect your personal assets in the event of a lawsuit against your business. When an individual sues your sole proprietorship, your personal assets are fair game.

DBA stands for “doing business as”. This is the name under which a company operates when it differs from its legal title and registered title.