Plenty of businesses operate under a name that isn't their legal name. The freelance designer named Jordan Lee who invoices as "Northpoint Studio." The LLC that runs a coffee cart and a catering service under two different brands. In both cases, the name customers see is usually a DBA.
Here's what a DBA is, who needs one, and what it does and doesn't do for your business.
What is a DBA?
DBA stands for "doing business as." It's a registration that tells the public, and your state or county, that a person or company is operating under a name other than its legal name.
Depending on the state, you'll also see it called:
- An assumed name
- A trade name
- A fictitious business name or fictitious name
They all describe the same basic thing. The registration creates a public record that connects the name you use with the person or entity behind it, so customers and courts can tell who they're actually dealing with.
What is your business's legal name?
Whether you need a DBA starts with knowing your legal name, and that depends on how your business is set up.
Sole proprietors
If you haven't formed an entity, your business's legal name is your own name. If Jordan Lee operates as "Jordan Lee," no DBA is needed. Operating as "Northpoint Studio," or even "Jordan Lee Design," generally means filing a DBA in many states, because the business name is different from the owner's legal name.
LLCs and corporations
An LLC's or corporation's legal name is the exact name on its formation documents, including the designator, like "Northpoint Studio LLC." If the company does business under that name, it generally doesn't need a DBA. If it operates under a different name, such as a separate brand or a shortened version, it may need to register that name. Whether simply dropping the "LLC" from your branding requires a DBA varies by state.
General partnerships
A general partnership's legal name is typically based on the partners' names. Operating under any other name usually calls for a DBA.
Why businesses file a DBA
The most common reasons are practical.
Banking in your business name
If customers pay "Northpoint Studio," you need to be able to deposit those payments. Banks generally ask for proof of a registered DBA before they'll open an account or accept checks made out to a trade name. See our guide to opening a business bank account.
Running a second brand under one LLC
An LLC that wants to launch a new product line, open a second location under a different name, or test a new idea can often register a DBA instead of forming a whole new company. It's simpler and less expensive than maintaining a second LLC.
Branding as a sole proprietor
A DBA lets a sole proprietor use a professional brand name on invoices, a website, and marketing without forming an entity.
Staying on the right side of state law
In many states, using a name other than your legal name without registering it can lead to penalties, and in some states it can limit your ability to enforce contracts in court until you register. The specifics vary by state.
What a DBA doesn't do
This is where people get tripped up. A DBA is a name registration, nothing more.
It isn't a separate legal entity
Filing a DBA doesn't create a company. A sole proprietor with a DBA is still a sole proprietor. An LLC with three DBAs is still one LLC.
It doesn't give you liability protection
A sole proprietor operating under a DBA remains personally responsible for all business debts and lawsuits. If you want to separate business liabilities from your personal assets, you need an entity like an LLC. Our comparison of an LLC vs. a sole proprietorship covers that decision.
The same logic applies inside an LLC. Every brand operating under one LLC shares that LLC's liability. If one brand gets sued, the assets of the entire LLC, including the other brands' money and equipment, can be at risk. Some owners form separate LLCs for higher-risk ventures for exactly that reason.
It doesn't give you exclusive rights to the name
A DBA registration generally doesn't stop someone else from using the same or a similar name. Trademark rights are separate. They come from using a name in commerce and can be strengthened by registering it with the U.S. Patent and Trademark Office or a state trademark office. Before you invest in a brand, run the same checks you would for a company name. Our guide to choosing a business name walks through them.
DBA vs. LLC at a glance
| DBA | LLC | |
|---|---|---|
| What it is | A registered name | A separate legal entity |
| Liability protection | None | Generally separates business debts from personal assets |
| Exclusive rights to the name | Generally no | Only against other entity names in that state; trademark rights are separate |
| Where it's filed | State, county, or both, depending on the state | The state's business filing office |
| Effect on federal taxes | None | Pass-through by default, with election options |
| Typical use | Branding, banking under a trade name, extra brands | Owning and operating the business |
Where and how to file a DBA
The process depends on your state, and sometimes on your county.
- Find the right office. Depending on the state, DBAs are filed with the Secretary of State, with the county clerk or recorder where you do business, or with both. Some states require a filing in each county where you operate.
- Check the name. Search the relevant state or county records. Some offices will reject a DBA that conflicts with an existing name, while others will register it without much review.
- File the form and pay the fee. Fees vary by state and county.
- Publish a notice if required. A few states require you to publish a notice of your DBA in a local newspaper after filing.
- Track the renewal date. In some states, a DBA registration expires after a set number of years and must be renewed to stay active.
Timing rules differ, too. Some states expect you to register before you start using the name, while others allow a window after you begin. Our state guides are a good starting point for your state's requirements.
EZ Entity Setup offers DBA filing as an add-on if you'd rather not track down the right office yourself.
Does a DBA need its own EIN?
No. A DBA isn't a separate taxpayer, so it uses the EIN of the business that owns it, or the owner's own taxpayer ID for a sole proprietor without an EIN. Operating under a trade name doesn't require a new EIN.
After you file
Once your DBA is registered:
- Open a bank account or add the DBA to your existing business account
- Use the name consistently on invoices, contracts, your website, and signage
- Sign contracts in a way that makes the legal owner clear, for example "Northpoint Studio LLC, doing business as Northpoint Coffee"
- Update business licenses and permits if they need to show the trade name
- Note the renewal date, if your state has one
The short version
A DBA lets you operate under a name other than your legal name. Sole proprietors need one to use any name besides their own, and LLCs and corporations need one in many states to do business under a name that's different from what's on their formation documents. Depending on the state, you file at the state level, the county level, or both.
A DBA is useful for branding, banking under a trade name, and running more than one brand under a single company. It isn't a separate entity, it doesn't provide liability protection, and it doesn't give you exclusive rights to the name.
This article is general information, not legal or tax advice. For decisions about your situation, talk to an attorney or a tax professional.