What is a DBA?
A DBA or Doing Business As is an optional registration that allows you to operate your business under the trade or fictitious name of your company, when this is different from the company's registration name. For example, suppose John Doe registers an LLC in the USA for an e-commerce business under the name "John LLC". However, you want to use the business name "Doe Meals" to bill your customers, suppliers, write checks, sign contracts, etc... Then you will need to register a DBA.What is a DBA for?
Many companies or entrepreneurs about to start a business should consider having a DBA, mainly because it offers numerous benefits:Maintaining privacy
Most people want to keep their business identity and personal life separate. If you are questioning whether to use a personal name or a DBA, opting for the latter option allows you to promote your business without compromising privacy, as it restricts the use of a personal name in routine business transactions.Brand identity and marketing
In turn, the use of a DBA facilitates the construction of brand identity. From a marketing perspective, having a DBA provides a clear name to promote the product or service offered.Greater legitimacy
Creating a DBA brings credibility to the business. The positive thing is that this does not require a substantial investment, simply great creativity.Expansion and customization
On the other hand, through a DBA, it is easy to adapt the business by location. Suppose there are multiple food stores in different states. Each establishment may be branded with the name of the corresponding 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 attractive, the truth is that it is not always necessary, since it depends on various regulatory and preferential factors.- Sole proprietorships and partnerships: They need a DBA if they use a name different from the full legal name of the owner or any of the members. This is because the owners of these legal structures are the same legal entity (there is no limited liability), which means they use the same name, unless they file a DBA.
- Franchises: Although not mandatory, franchisees usually register a DBA to operate under the image of the franchise, but maintain a different legal structure.
- Other Legal Entities: Corporations or limited liability companies (LLC) generally do not require a DBA. However, they may choose to do so based on local requirements or to adopt a business identity other than the name under which they have registered.
How to get a DBA?
Obtaining a DBA is a relatively simple process, since you only need to follow a series of just four steps:- Research your desired name: Make sure the DBA name you have in mind is not in use. Typically, you can conduct a business name search on the relevant Secretary of State's website.
- Review your state's naming requirements: Each state has its rules regarding the name of your business. In general, it is not allowed to use words or terms linked to banking or other government entities.
- Meet operational requirements: Some states may require you to begin operating under the DBA name before registering it. You can ask for proof of this (brochures, invoices, website, brochures, presentations are usually enough to prove it).
- Register your DBA with the Secretary of State or local government entity: You can usually complete the process through an online form or by mailing documentation.
How much does a DBA cost?
The prices of obtaining a DBA vary depending on numerous factors: state, county, city, business structure, etc. However, on average, this process to create a fictitious name costs between USD 10 and USD 100. Some examples:- Wyoming: $100
- California: between $50 and $100
- Florida: $50 + mandatory publication fee (between $50 and $100)
- Texas: $25
- Delaware: $20
- New Mexico: $50
How long does a DBA last?
DBAs have a certain validity period that varies by state, and must then be renewed. For example, in California it is renewed every 5 years; in Texas, every 10 years, and in New York there is no deadline. Typically, a DBA registration is valid for 5 years before needing renewal.Conclusion
Having a DBA or Doing Business As is not only a matter of preference, because it offers multiple advantages that will allow you to grow professionally and economically. So, now you know, find out which DBA may be the best for your case and follow the step by step to be able to register it and start using it in your daily operations. Get professional help to apply for your DBA- Business experts in the USA
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Written by
Ignacio Navarro
Ignacio Navarro is a Certified Public Accountant, graduated in 2020 from the National University of Tucumán. Founder of Start Companies since 2023, he advises clients worldwide on forming LLCs in the United States and on proper tax filing. His expertise combines legal, tax, and practical knowledge, offering a comprehensive service that spans from company formation to bank account setup and sales platform integration.
