Doing Business As: What Registering a DBA Means

Doing Business As: What Registering a DBA Means

In this guide, we'll take a closer look at what a DBA means, why you may want to register a DBA for your business, and some easy steps to help you get started.

Key Takeaways

• A DBA is not a new company, but rather another name for your existing company.
• Filling out a DBA is easier and cheaper than forming a new business.
• A DBA does not offer asset protection like an LLC does.
• You can file a DBA online or in your county or state building.
• Gonukkad can simplify your DBA filing and promote your business in the local market.

What is DBA & When Do You Need One?

Doing Business As, often referred to as DBA, is a formal method of stating that your business is doing business under a name other than its legally registered name.

It's similar to your business's nickname. Suppose your legal name is John Smith, but you do business selling furniture under "Smith's Home Furnishings." You'd register "Smith's Home Furnishings" as your DBA.

This way, customers can identify and remember you more easily without needing to alter your formal business structure.

Why Register a DBA?

There are lots of reasons to use a DBA:

• If you are a sole proprietorship, it provides personal anonymity by allowing you to conceal your true legal name behind a business name.


• DBAs are used by businesses to rename or introduce new products without creating an entirely new company.


• It's necessary to open a bank account in your business name.


• Franchise companies use DBAs to indicate they are conducting business in the franchise's name, rather than their own.


• DBA registration is typically done by filing a basic form with your state or local government and paying a minor fee.

How to File a DBA

The process of filing a DBA generally goes like this:

• Select a distinctive business name according to your state's regulations.


• Verify that the name is available and not taken.


• Complete the DBA form and file it with your county clerk or state government; in some localities, this can be done online.


• Submit the registration fee, which may be as little as $25, in your location.


• In certain locations, you may be required to advertise your DBA name in a newspaper to inform the public.

DBA vs. LLC: Which is Right for Your Business?

People often confuse a DBA and an LLC because both are related to business names. Here's the easy difference:

• A DBA is simply an alternate name your business is going by, but it does not give you legal protection for your personal belongings.


• An LLC (Limited Liability Company) is an independent legal entity that insulates your personal assets from business loans and legal action.

Check out the table below to understand the difference between a DBA and an LLC briefly.

Are There Downsides to Filing a DBA?

Although it's convenient and flexible to use a DBA, there are few downsides of it as well:

• If something goes wrong while running your business, you, as the sole proprietor, could still be liable for a lawsuit.


• The other potential drawback to registering as a DBA is that it doesn't preclude another business from using your new assumed name as their own.


• You will need to periodically renew your DBA and possibly file in multiple counties if you do business in many areas.

Common Mistakes to Avoid When Filing a DBA

Avoid these common pitfalls:

• Primarily, make sure you're following the right guidelines because the rules vary from state to state, and sometimes even by city and county.
• It's also important to make sure a name isn't already taken. Check the trademark office, do a domain name search, and confirm that social media handles are available before filing a DBA application.
• As long as the name you have in mind is available, the final mistake to avoid is misspelling words or making a name that's hard to remember.

Can You Change Your DBA?

If there's an error or typo in your DBA registration, you can simply file a certificate of correction to the same authorities to make sure that everything is properly registered.

If you want to change your DBA name altogether, you can either wait to renew your DBA or follow these steps:

• If applicable, get formal approval from your shareholders, partners, or LLC members.


• File an amendment with the Secretary of State and any other agencies that you originally filed your DBA with, plus the filing fee.


• Notify state regulatory agencies, tax authorities, licensing agencies, the post office, and other stakeholders of your name change.


• Update all of your marketing materials and business accounts, and notify your clients, suppliers, and vendors.

Filing a DBA in Umatilla County Oregon and Texas

Every state or county has its own procedure for filing:

In Oregon, Umatilla County, you can register your DBA online with the Oregon Secretary of State and renew it every two years.

In Texas, LLCs are filed with the Secretary of State, while sole proprietors are filed with the county clerk. The cost of filing in Texas is typically $25.

Conclusion

To put it simply, DBA stands for a way to operate your business under a catchy or professional name without the need for complicated legal modifications. With the proper support from Gonukkad's registration and business promotion services, your new DBA can soon become a well-established local brand. If DBA filing and marketing locally seems too much, Gonukkad's staff is ready to assist you every step of the way.