Why You Might Want a DBA For Your Business
Starting a business comes with numerous important decisions, including whether to file for a DBA, which stands for Doing Business As.
Essentially, a DBA is known as an alias, a trade, fictitious, or assumed name for a
company. By using a fictitious name, you can conduct your business under a name that is not your legal name.
Why Would You be Inclined to Register for a DBA?
One advantage to having an alias is that using a DBA allows you to use a creative name which could help attract more customers. Additionally, if you're a sole proprietor or a part of a partnership, your real name is kept private, as your customers will only see your fictitious name. Therefore, you will have more privacy.
You can also benefit from having a DBA when working with your financial institution. For example, when you need a small business loan, banks understand that DBAs are a sign that you mean serious business and that you are not having fun with a hobby.
Understand Requirements are Different by State
It's essential to understand that the requirements for registering for a DBA vary from state to state. It's important to research the specific regulations in your state, as some may require you to apply with the Secretary of State or county clerk's office, while others may allow you to file online. However, some states require that the business owner’s signature be witnessed, so you must register in person. Another way states differ is that your business structure may determine if you need to file for a DBA.
Before filing for a fictitious name, be sure to check that no other business is already using the one you want. It's also important to note that a DBA doesn't last forever; each state has different terms, and in some cases, a DBA may only last a few years. In these cases, you will need to renew the alias when the time comes.
If you have questions regarding the regulations surrounding filing for a fictitious name in your location, reach out to your local economic development department in your city or county. They can advise you on the steps required to comply.
