DBA stands for “Doing Business As” and a DBA can be really beneficial for your company, and even needed in some cases. It’s important to know what this term means in the business world and is always good to keep in mind how to get one.

Today, you will learn all you need about DBAs, and how having one can help your business grow. A DBA is also known as a fictitious name, trade name, or even fictitious name.

Basically, a DBA is a nickname, for your company something shorter and better for business. Also, if you don’t currently like your business name too much, you can get a DBA, or change the one you have if already have one.

This way you can continue your business activity using the name that you have chosen. Of course, businesses don’t get DBAs simply because they don’t like their names now, there is a lot more than that.

Do you need a DBA?

For starters, a DBA is not necessary by any means to run or have a business. But it may come in handy in some situations, and it is something that you can use to make your company grow.

For example, if you want to promote a brand or a new product but not in the name of your company, you can use a DBA. This way, it has its own name, and that’s how you promote a new brand in a new sector.

It may be beneficial whenever you want to expand, and some other uses too. Just to be clear, the problem is that DBAs don’t count with liability protection, which you have to be aware of.

It will also allow you to receive payments in the name of your company’s surname and not your own name. This will increase the credibility and the credit of your company. It can also be used for privacy, this way not everyone knows the exact person who is behind the company, in case you may be interested in that.

As you can see a DBA has many advantages, now you can answer the question “what is a DBA?” with a precise answer.

What does having a DBA mean?

Having a DBA means that you as the owner of your company, decide to take actions in the name of said company. For example, if you are purchasing a product from my company, you will not be purchasing it from me personally, you will be buying it from “DBA”.

This gives you a level of privacy and makes your company look more professional.

How can a DBA be useful for your business growth?

 

DBA is essential for those who are not interested in getting a traditional LLC business. Also, for small companies that would like to branch out to other markets or types of business.

The DBA will allow you to request certain important documents, like an employer tax identification number. It also allows you to receive payments in the name of your company and open company bank accounts.

Also, in case you want to get other kinds of companies, you can get another DBA instead of another LLC. This could be advantageous because will reduce the cost of taxes.

You can get as many DBAs as you want, but more is not necessarily better, investigate the way it works.

What is DBA? (example)

Say that you, John Brown, want to make business with your company under the name of “John’s Shack” the store he owns. Then, you will have to get the DBA “John’s Shack” and now the payments will have the DBA instead of his personal name.

And all of the things we have discussed so far will apply.

What is DBA and LCC?

They are both completely different things; the LLC is a whole different company structure. While DBA is another name your company can operate under. To make it easy, an LLC is a different company, but no matter how many DBAs you own, you have one single company.

Therefore, one of the greatest differences is that LCC counts with liability protection, while a DBA doesn’t. You can turn a DBA into a different LCC, you will have to register the new LCC in the state.

The process to turn a DBA into an LCC is different for every state, so you will have to go and investigate the process for the state you live in.

How to choose and get a DBA?

Here applies the same, the process to register the DBA is different in every state, so there is no one single process. What is for sure is that you will have to pay from 10$ to 100$ to register a DBA, depending on the state you live in.

Another requirement is that after you have completed the process you will have to publish your DBA in the newspaper.

Even if the process is different, generally is pretty simple, and it doesn’t take too long. For example, in California, you will simply have to register your DBA with a state clerk.

Another important thing that applies for every state is that you must check that the DBA you are choosing isn’t already taken. If the name you want was already used, you will not be able to use it anymore.

As a recommendation, if you choose your DBA you should also buy the domain name of your company’s fictitious name. Just to ensure that nobody else takes it.

Can you do DBA online?

As we have said the process is different for every state, it may be possible that you can register it online in some states. However, in general, terms, is not possible, in most states you will have to register it personally in the county clerk.

Anyway, you can go to the county clerk of your state to figure out the process. Or look up online instructions to register DBA in the exact state you are located.

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