A DBA simple means: “doing business as.” More importantly, it’s as if you’ve changed your name!
Let’s say your name is “Indiana Jones.” But you want to start your own archeology firm called “The Raider of the Lost Ark.” Your firm would be your DBA. And one thing’s for sure: Indy would need a DBA to protect his name.
More importantly, going beyond “what is a DBA?” opens up even more possibilities
For starters, not every outfit will need one. There’s nothing wrong with having one, though, but not everyone will benefit from a DBA. For instance: corporations won’t need one! After all, a corporation would have already registered a name, so chances are there would be no need to register a DBA (why did you register the corporation as a…. corporation?).
Who needs a DBA? Most sole proprietors do. Partnerships do as well. Ultimately it’s to keep your business separate from you, but not for a lot of the reasons you think.
Before we get into that, let’s see how to file a DBA
Depending on your state, county, city and even business structure, a DBA’s as easy as simple publishing an ad in your local newspaper. It, of course, needs to run for a specific period of time, satisfying what’s commonly called the “public notice” some states require.
One thing to note, though: in general, your DBA will not have any typical ‘corporate’ suffix, such as ‘Inc’ or ‘LLC’ or ‘Corp’ or anything like that. Because, again, your DBA is not an LLC or corporation. You’re just “doing business as” said entity. Kind of like you’re wearing a Halloween costume.
Just be sure you follow these tips when filing for a DBA
And some of these might actually surprise you….
- You can get your DBA registered as an LLC or corporation if you want
- But you’ll need to provide some sort of certification of good standing
- You’ll also need to pay online for the registration of a DBA (whether as an LLC, corp., or neither)
- Also check if you have to renew after a set amount of time
- And, lastly, consider getting an attorney
And what are the advantages of a DBA filing?
Here’s where it gets interesting. Aside from not wanting to operate under your own name (which you may have reasons), these perks do come with a DBA:
- Business banking will get a lot easier
It’s important to know you don’t need anything in particular to even open up a business bank account. You can set up any name you want. However…. If that DBA name isn’t registered with the state, you won’t have what’s called an “employer identification number” (EIN).
And, fun fact: you need that EIN to even open up a business bank account. So there’s that.
- That being said, your business gets to be legally compliant
If Indiana Jones signs a contract to obtain the Holy Grail as the “Raider of the Lost Ark,” legally the contract is null and void. Because legally the “Raider of the Lost Ark” doesn’t even exist. Either the authorities at his university — or the evil Germans — could practically file a lawsuit (or worse, as Indy’s known for).
A DBA, however, doesn’t offer many legal protections, although you can submit your DBA as evidence that your business and assets are completely separate from your personal ones. Not to mention you’re more likely to get a small business loan with a DBA.
- Additionally, your DBA defines your brand
That’s especially if you choose a catchy name like the “Raider of the Lost Ark.” The public gets to see that as its first impression of what your business is all about, and that’s important. Not many would blink an eye at a name like “Indiana Jones,” but a “Raider of the Lost Ark”? Sounds catchy.
- Not to mention the possibility of expansion
Case in point, there’s no limit to how many DBAs you can have. You can have 30 of them if you want. Maybe you want to file other DBAs like “The Last Crusade,” or the “Kindgom of the Crystal Skull,” or the “Temple of Doom.”
In a way, they’re almost like filing for trademarks or copyrights. But the convenience is you can do that without having to go the more complex route of filing for a completely new LLC or corporation. You get to have all those DBAs under your one name.
- And what if your company name isn’t available as a URL?
Because in this day and age, you most likely will need a website. But you won’t pay $1K for a dinky line of text. If that’s the case, simply file a DBA! Just ensure the name you’re choosing offers a domain that’s relatively cheaper, you know?
But best of all, filing a DBA is just about the easiest thing for you to do
It’s easier than filing for an LLC. Easier than filing for a corporation. Even easier than setting up a business partnership. So consider the perks. Weigh out the needs. And above all else…. Only the penitent man will pass.
