Doing Business As (DBA)

If you’re just starting a business as a sole proprietorship, legally the business name is your surname. However, if you choose to operate under a DBA, you are able to use an alternate name. For example, if your name is Emily Hudson and you plan to run your business as “Simply Dog Walking”, you would use a DBA.
 

Similarly, if you were creating a partnership, then the business name would be each of the surnames of the partners (ex: Smith, Rogers, Jones)—a DBA would allow you to conduct business as “Friendly Plumbers”, instead.
 

When it comes to starting an LLC or corporation, the official and legal name is the one that is used during the state filing. As such, legally your business can have only one name at a time. By doing business as an assumed name, you can use multiple names concurrently. For example, if your LLC’s legal name is “Kramer and Jones, LLC” you could file a DBA as “KJ Vegan Cookies”.

Low-cost organizational structure: If you’re in the early phases of starting a small business, filing for a DBA is a relatively low cost process. “Doing business as” allows you to structure and organize your company quite easily, rather than the extensive formalities of forming a corporation or LLC, with less upkeep. As your business grows, you may then consider converting to a corporation or LLC.
 

Banking and payment flexibility: When receiving numerous payments from various vendors for different segments of your enterprise, you are able to accept funds to any of the DBAs and their multiple accounts. This allows for much more flexibility and can streamline your accounting.
 

Easy brand growth: By marketing under additional assumed names this allows your brand to expand. Just as the above example shows, “KJ Vegan Cookies” may want to segment their offering and sell other vegan items such as skincare products, and using a DBA allows them to rebrand as a different name, such as “Fave Vegan Skincare”.

No asset or liability protection: If you are operating a type of business such as sole proprietorship or partnership under a DBA you do not have liability protection the same way you would if you had an LLC or corporation, therefore you are personally liable for business debts.
 

No exclusive rights: Under a DBA you don’t have exclusive rights to your business name. Although it is different in specific states and countries, anyone can register any DBA. (On the plus side, some states allow name reservation to hold your right to a specific name for a period of time, usually between 60-120 days, and allow for renewal).
 

No tax benefits: Unlike a corporation, when you use a DBA that is not part of an LLC you are not entitled to any special tax benefits.