When Do I Need a DBA for My Business? Key Scenarios to Consider
If you're starting or growing your business, you may have come across the term "D/B/A," which stands for Doing Business As. Also known as a ...
5 min read
LegalGPS : Aug. 2, 2024
A D/B/A (Doing Business As), also known as a fictitious name or trade name, allows your LLC to operate under a name different from its official legal name. Filing a D/B/A is common for businesses that want to use a more recognizable or brand-friendly name in the marketplace. Below is a step-by-step guide to help you through the process of filing a D/B/A for your LLC.
Legal GPS Pro
Protect your business with our complete legal subscription service, designed by top startup attorneys.
First you need to identify the state where you'll be doing business with the d/b/a. For example, if Lawn Care LLC operates in Missouri and Illinois, and Dog Walkers 4 U will only operate in Missouri, then I'll only need to file the D/B/A form in Missouri. Otherwise, follow the steps to register an LLC in another state if you expand operations.
Next, find the d/b/a form (if you can't find it, try searching for "fictitious name"). Fill it out and use your LLC as the company the name will be "doing business as." And that's it! It takes a few minutes, you can do it on your own, and it usually costs less than $20. That's the brief version. Read on if you want a deeper dive.
Before filing a D/B/A, it’s important to understand why your LLC might want to use one. Common reasons include:
Remember, a D/B/A doesn’t create a separate legal entity—your LLC retains liability and ownership of the business, even if it’s operating under a different name.
Each state has different requirements for filing a D/B/A, so you’ll need to verify the specific rules where your LLC is registered. Generally, you’ll need to:
Once you’ve chosen a name and confirmed it’s available, you’ll need to file the appropriate paperwork. Here’s how to do it:
Complete the D/B/A Application: Most states have a standard application form for registering a D/B/A, which can usually be filed online through the Secretary of State's office. In some cases, you may need to file at the county or city level instead of or in addition to the state.
Pay the Filing Fee: Fees for filing a D/B/A vary by state and local jurisdiction but are generally between $10 and $100. Make sure to check your local requirements to determine the exact cost.
Publish a Notice (If Required): Some states, such as New York, require businesses to publish a notice of the D/B/A in local newspapers. This step is intended to inform the public that you are operating under a different name.
A D/B/A registration typically isn’t permanent and may need to be renewed periodically, depending on your state’s regulations. Renewal periods vary by jurisdiction, but it’s usually required every 3-5 years. Be sure to keep track of renewal deadlines to avoid fines or losing rights to use your D/B/A name.
After your D/B/A is approved, make sure you update your business documents and inform relevant authorities. This may include:
If you’re operating your business under a different name than your own or the entity’s name--without a d/b/a--you could incur penalties ranging from a small fine, inability to enforce contracts, to actual criminal charges.
While a small fine isn’t the end of the world, not being able to enforce a contract would be a nightmare. Imagine that you sign a contract using your fictitious business name and later the other contracting party doesn’t perform. If you didn’t have a d/b/a, there’s nothing indicating who the contracting party was--you “legally” just made up a name out of thin air. So, that could be a huge problem. To that end, it's important to learn when to register a D/B/A vs. form a new LLC to avoid legal issues.
The criminal charge would also be terrible. Although I find it difficult to imagine a prosecutor pursuing this, the law makes sense--it ensures consumers aren’t just defrauded by fake business names.
Legal GPS Pro
Protect your business with our complete legal subscription service, designed by top startup attorneys.
Here's an example to show what could happen:
Will set up his LLC as William Bone, LLC. His company went by “Salesly” however. Will signed all his contracts under Salesly’s name and advertised to the public that their business name was called “Salesly.”
Will got into a conflict with a contractor who did a terrible job building Will’s website, so Will didn’t pay the contractor the full amount. The contractor hired an attorney to sue Will for failing to pay the full contract.
The contractor’s attorney looked at the contract and checked the state records and saw that Will had never filed a d/b/a for Salesly. As a result, Will was unable to enforce the contract and now had to worry about potential criminal implications.
Will could’ve avoided all this by filing a $7 d/b/a form with his state.
The biggest question now is, "Do you need a lawyer to start an LLC?” For most businesses and in most cases, you don't need a lawyer to start your business. Instead, many business owners rely on Legal GPS Pro to help with legal issues.
Legal GPS Pro is your All-In-One Legal Toolkit for Businesses. Developed by top startup attorneys, Pro gives you access to 100+ expertly crafted templates including operating agreements, NDAs, and service agreements, and an interactive platform. All designed to protect your company and set it up for lasting success.
Legal GPS Pro
Protect your business with our complete legal subscription service, designed by top startup attorneys.
Legal GPS templates are drafted by top startup attorneys and fully customizable.
If you're starting or growing your business, you may have come across the term "D/B/A," which stands for Doing Business As. Also known as a ...
Running a partnership has its benefits, but converting to a Limited Liability Company (LLC) can offer significant advantages for your business. An LLC
Starting your own business is an exciting journey, but it comes with many challenges, including legal ones. One of the first steps for many...