How to File a DBA or Fictitious Name for Your LLC: A Step-by-Step Guide
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...
5 min read
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 fictitious name or trade name, if you're learning how to create an LLC, a D/B/A allows your business to operate under a name that’s different from your legal business entity’s (e.g. an LLC) name. But when exactly do you need one? In this blog, we’ll explore the scenarios where a D/B/A makes sense, why it can benefit your business, and what the process entails.
Legal GPS Pro
Protect your business with our complete legal subscription service, designed by top startup attorneys.
- ✅ Complete Legal Toolkit
- ✅ 100+ Editable Contracts
- ✅ Affordable Legal Guidance
- ✅ Custom Legal Status Report
What is a D/B/A?
A D/B/A (Doing Business As) is a registered name that a business can use to operate under a different name from its official legal name. It doesn’t create a new legal entity, nor does it separate your personal liability from your business. It’s essentially a legal alias for your existing business.
For example, if your legal business entity is “John Smith Enterprises, LLC” but you want to operate as “Smith Marketing Solutions,” you would file for a D/B/A under that name.
Do You Always Need a D/B/A?
Not every business needs a D/B/A, and whether or not you need one depends on how you intend to operate your business. Here are a few key situations where you would typically require a D/B/A:
1. Operating Under a Different Name Than Your Legal Entity Name
The most common reason to file a D/B/A is if your business is operating under a name that differs from your LLC or corporation's legal name. This could apply to various scenarios:
-
Personal Name to Business Name: If you’re a sole proprietor, your business’s legal name by default is your personal name. For instance, if your name is William Bone and you want to run a bakery under the name “Will's Cooks,” you’ll need to file a D/B/A to use that business name officially.
-
LLC or Corporation Operating Under a Trade Name: Similarly, if you’ve formed an LLC or corporation but want to brand yourself with a more customer-friendly or creative name, a D/B/A is required. For example, “Main Street Accounting Services, LLC” might want to operate as “Quick Tax Pros” in the marketplace, and a D/B/A would be necessary.
2. Expanding into Different Business Areas
If your business is expanding its offerings into new services or products that don’t align with your existing name, a D/B/A can allow you to keep your branding consistent across new markets. For example, if you run “ABC Consulting, LLC” as a consulting firm and now want to offer digital marketing services under the name “ABC Digital Solutions,” a D/B/A allows you to make this expansion without having to form a new legal entity.
This flexibility lets you explore new business ventures without the expense and paperwork involved in creating separate LLCs or corporations.
Legal GPS Pro
Protect your business with our complete legal subscription service, designed by top startup attorneys.
- ✅ Complete Legal Toolkit
- ✅ 100+ Editable Contracts
- ✅ Affordable Legal Guidance
- ✅ Custom Legal Status Report
3. Running Multiple Businesses Under One Legal Entity
A D/B/A allows you to run multiple businesses under a single LLC or corporation without forming multiple entities. This can be a cost-effective and administratively easier way to manage different business ventures.
For instance, if your LLC operates a graphic design business and you also want to start a web development arm under that legal entity, you can file a D/B/A to operate the web development business under a distinct name.
4. Franchises or National Brands
If you own a franchise or are operating under a larger national brand, you might need a D/B/A to localize the business name (you might also need to learn to register your LLC in a different state as well). For example, if you are operating a national chain, such as “Joe’s Coffee House,” you might be required to file a D/B/A to operate under the franchise’s name in your particular location.
5. Legal and Banking Requirements
Some states and banks require sole proprietors and partnerships to register a D/B/A in order to open a business bank account or enter into contracts. If you’re operating under a name other than your legal name, banks may require a D/B/A filing to ensure you’re the authorized representative of the business.
Similarly, some states or local governments mandate D/B/A filings for tax and legal purposes, ensuring they can track who is responsible for a business operating under a trade name.
6. Rebranding or Pivoting Your Business
Businesses often evolve, and sometimes, your initial business name no longer reflects the direction your company is heading. If you’re rebranding or pivoting your business, a D/B/A allows you to adopt a new business name without needing to dissolve or refile your existing LLC or corporation. This can save time and money while providing your brand with a fresh identity.
For example, if you started as “Jane’s Homemade Crafts, LLC” but now want to focus on professional interior design, a D/B/A like “Jane’s Interiors” can align your new services with a more appropriate business name.
What You Need to Consider Before Filing a D/B/A
While a D/B/A can offer your business flexibility and improved branding, there are some key considerations to keep in mind before you file:
1. It Doesn’t Offer Legal Separation
A D/B/A doesn’t create a separate legal entity. That means if your business incurs liabilities under its trade name, the owner (you or your LLC) is still legally responsible. If personal liability protection is a concern, forming an LLC or corporation may be more appropriate than relying solely on a D/B/A.
2. State and Local Filing Requirements
The process and requirements for filing a D/B/A vary by state and, in some cases, by local jurisdictions. Some states require you to file with the county clerk, while others require filings with the Secretary of State. It’s important to ensure that your D/B/A complies with local regulations. Some jurisdictions also require you to renew the D/B/A periodically, typically every 3-5 years.
3. Cost and Fees
Filing a D/B/A usually comes with a small filing fee, but the amount varies by state. Additionally, if your state or local government requires you to publish your new D/B/A in a local newspaper, you’ll also need to budget for publication fees.
How to File a D/B/A
Filing a D/B/A is generally a simple process. Here’s an outline of the typical steps:
-
Perform a Name Search: Ensure your desired D/B/A name isn’t already in use. Most states allow you to search their business registry database to check for availability. Also, perform a trademark search before naming your LLC or selecting a D/B/A to avoid conflicts.
-
File the Necessary Paperwork: Complete the D/B/A application with your state or local government. Many states allow you to file online through the Secretary of State’s office, while others may require you to file in person or by mail.
-
Pay the Filing Fee: Fees vary by location but are generally between $10 and $100, depending on your jurisdiction.
-
Publication Requirement: In some states, you’ll be required to publish a notice of your D/B/A in a local newspaper for a specified period.
-
Renew as Needed: Many states require that you renew your D/B/A every few years. Keep track of your renewal deadlines to avoid losing the ability to use your trade name.
Do I need a lawyer to start an LLC?
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 LLC. 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.
- ✅ Complete Legal Toolkit
- ✅ 100+ Editable Contracts
- ✅ Affordable Legal Guidance
- ✅ Custom Legal Status Report
Protect Your Business with a Custom LLC Operating Agreement
Legal GPS templates are drafted by top startup attorneys and fully customizable.
1 min read
What is a Foreign LLC and Do You Need to Register? A Complete Guide
Chris Daming, J.D., LL.M. : Oct. 25, 2024
If you formed your LLC and you “do business” in other states, you need to file for foreign registration in those states that tells the state that...
How to Apply for an EIN: A Simple Step-by-Step Guide for Your Business
An Employer Identification Number (or EIN) is how the IRS recognizes your business. It's similar to a Social Security Number, but for your company. ...