How To Register A Fictitious Name

DBA stands for "doing business as," referring to the name you desire the public to call your company.
The filing fee for a DBA ranges from $5 to $100 depending on the land.
To file for a DBA, you must fill out an application through a local, state or county agency. In some cases, you lot besides accept to denote your new company's proper noun in a local newspaper.
This article is for sole proprietors who are legally required to use their personal proper noun as their concern name. A DBA gives them the option to file under a name of their choosing.

Once y'all've decided you want to outset a business and have chosen a business structure, it's time to figure out how you want to present your business organization to the public. Choosing a "doing business organization as" proper name, or DBA, is not just ane of the get-go steps to establish your business, but also a good branding motion. Some people cull to employ their own name for their business, just if you want to give yours a unique name – without registering as a corporation – you lot'll demand to register your alternative business name with the right people, which you can do in 2 or three steps (depending on the land you file in). This can cost anywhere from $5 to $100 and takes one to iv weeks to file.

What is DBA?

DBA stands for "doing business every bit." Your DBA is the name your business is referred to both legally and past consumers. A DBA has a few aliases itself: It is also known as a fictitious concern name, causeless name or trade name. A DBA is ideal for sole proprietors who prefer not to use their own names as their company name and small business owners who desire to pick their own business concern proper noun without condign a corporation.

Having a DBA "means that the person or business concern entity intends to employ that proper noun to identify itself to the public," said Kimberly Hanlon, chaser at Lucēre Legal LLC. "The legal name remains the person's name (if an unregistered sole proprietorship) or the business entity (if a corporation or a express liability visitor), simply the name that the public knows the business as is the DBA name."

Key takeaway: DBA stands for "doing business organization equally," the name your business organisation is referred to as by the public. This is a great option for a sole proprietor who doesn't want their business nether their personal name.

How exercise you file a DBA?

You need to fill out specific paperwork and pay a filing fee when yous file a DBA. Yous can do all of this with a local or county bureau, but some states require you lot to file with a state agency instead of or in addition to the canton. Some states and counties might also require you to publish information technology in a local newspaper, giving the public notice that y'all accept filed a DBA.

For instance, in New York, sole proprietorships and general partnerships must file a concern certificate listing their assumed names with the county clerk'southward offices. Corporations, LLCs, LLPs and express partnerships, on the other paw, must file assumed names with the New York Department of Country. In contrast, the state of Kansas has no requirements for businesses to register fictitious names.

What happens after you file a DBA?

Once you've called your concern's fictitious name and registered it locally, you might want to consider filing for a trademark with the U.S. Patent and Trademark Part to protect your intellectual belongings. Trademarks protect words, names, symbols, sounds or colors that distinguish your goods and services.

If the paperwork and filing process seems overwhelming, you tin contact a business lawyer to consummate all the necessary filings to secure your DBA name. Reputable business lawyers are listed by the American Bar Association.

Who needs to annals a DBA?

The Pocket-size Business Administration is a great resource for those who aren't sure if they need to register a DBA, only if you plan on using a business name that differs from your given name or your business partner'south name, you'll need to register one. Other reasons could be if your bank requires information technology to open up a business organization account, if a prospective client requires a DBA to award your company a job, if your visitor is inbound a new business area not reflected in your current name, or if your company operates more than one business organisation or website.

It'south important to note, though, that a registered DBA doesn't establish a concern in itself.

"It doesn't set upwardly a business entity, like a limited liability company or a corporation," Hanlon said. "It just identifies a proper noun and notifies the public who is behind that proper name. A person or business concern entity could conceivably have many DBAs, each with a different product or service market."

While a person tin register as many DBAs as they're willing to pay for, two LLCs cannot have the same DBA.

"A DBA, like whatever other business name that is registered, can simply be registered once and only has one owner," Hanlon said. "That said, there could be multiple LLCs who are all owners of the company that registered for the DBA. For instance, North LLC and Due west LLC are each owners of Northwest LLC, and Northwest LLC has a DBA of Compass Point Consulting."

Writing a DBA is simple; you would simply write it out as the different proper noun y'all've chosen to exercise business every bit.

"A sole proprietor would non accept concern cards saying, 'Jim Smith DBA Jim'due south Gutter Repair,'" said Anthony Babbitt of Babbitt Consulting. "Instead, the business concern cards would read, 'Jim'south Gutter Repair.' DBAs are typically simply spelled out on legal documents, such as lawsuits, bank statements and contracts."

If your business is an LLC, no DBA is necessary. "If the limited liability company was named Jim's Gutter Repair LLC, then this would be the correct way to list the proper name on business cards," Babbitt said. "Each state has its own laws designating how sole proprietors, limited liability companies and corporations must note the legal entity from which they operate. If an possessor created an LLC and wanted to drop the 'limited liability company' part of the name, then he would need to register a DBA. The same holds truthful for a corporation or partnership."

Tip Tip: Legally, sole proprietors must utilise their personal proper noun equally their business concern name. Registering for a DBA allows them to name their business something of their choosing. Sometimes banks or clients will require y'all to have a DBA.

How much does registering a DBA cost?

"The fee will vary past state, simply it is typically between $5 and $50 (but closer to $20 on boilerplate)," Babbitt said, although it can be up to $100 in some states. "While the cost to annals is insignificant, the penalties and fees for failing to register tin can be several thousand dollars. This is a function of consumer protection. The state wants to know who to contact when a consumer complains. While this is unremarkably handled when obtaining a business license, some states practise not require business licenses. Almost every country requires DBAs to be registered."

While there'due south no numerical limit to how many a person can register, it can get expensive if you register multiple names.

Alabama, Arizona, Nebraska, Oklahoma and Rhode Isle are the merely states that don't require anybody operating under a DBA to annals, only information technology's all-time to check with your land most the local requirements.

Did you know? The filing fees for DBA registration vary by state, running from $5 to $100. Depending on how much you are willing to spend, yous can register for every bit many as you want.

What are the advantages of having a DBA?

A DBA can accomplish several things for a business owner.

"If a business wishes to rebrand itself without forming a new corporation or limited liability company, they tin simply register a DBA instead," Babbitt said. "If the business receives bad publicity, they may annals a DBA to mislead the public into thinking the business is different."

In that location are besides some less obvious reasons to register more than one DBA. For example, there'southward a scene inParks and Recreation where Tom and Ben are looking for a tent for an event. The bargain falls through with ane tent visitor, and then they call some other one, merely to find that it's owned by the same person. In fact, that same person owns all the tent rental companies in a certain mile radius. Babbitt says that this actually happens.

"Some businesses will create multiple DBAs to create the illusion of competition," he said. "For instance, four taxis could all have separate DBAs fifty-fifty though they are all owned by the same person."

A DBA as well comes in handy for entrepreneurs who want to brand a distinction amongst their numerous businesses.

Finally, if you are a sole proprietor, it gives you the chance to build a make under a proper noun of your choosing instead of using your personal proper name. This helps you market place ameliorate to your audiences and gets your brand out at that place in a style that is beneficial to your business.

Michael Keller and Jennifer Post contributed to the reporting and writing in this commodity. Some source interviews were conducted for a previous version of this article.