DBA also referred to as a fictitious or assumed business name stands for ‘Doing Business As’. DBA informs the public about the actual of a business. DBA began as a method of protecting consumers from deceitful business people by ensuring that they don’t operate under different identity. Once a person files a DBA, it is printed on a newspaper under classified section and circulated to inform the public exactly who is the business owner.

What Businesses Require DBA?

DBA requirements vary depending on the type of business. Businesses operating as sole proprietorships need to register for DBA if their business bears a name other than that of the owner. For instance, if you have started a flower business by the name Autumn Flowers, then you’re required to register a DBA for ‘Autumn Flowers’. In situations where a business name combines the owner’s name with the description of the services or products being offered, a DBA is not required. In the case of Corporations and Limited Liability Companies, filing for DBA is not required after registration of the business name. However, DBA registration is a requirement where there are plans to use a different name other than the one registered on the Corporation’s or Limited Liability Company.

Why a DBA is Essential

A DBA registration makes it easy and inexpensive way to utilize a business name for sole proprietors. It is a requirement to operate a bank account and transact using the business name. One can establish a distinct professional business personality without forming a Limited Liability Company or a Corporation. DBA allows Corporations and LLCs to run several businesses without forming new companies. It also ensures businesses comply with the law. Business or company owners are required to provide their DBA names on all government applications including permits, licenses and tax identities.