DOING BUSINESS AS: CREATING AND USING A FICTITIOUS NAME Sole Proprietor or DBA?
A sole proprietor operates his or her business under their own name, such as Jack Jones Construction Company, or Sheila Smith Seamstress. No filing of paperwork is required other than necessary city or county licenses. However, by using a fictitious name, such as Mountain States Construction Company, or Panda Bear Embroidery, adds a requirement of filing a fictitious name, or DBA notification. Each county or city has its own specific notification requirements for a DBA, but usually this means announcements in a local newspaper. Once these announcements are posted, a bank account under the fictitious name (DBA) can be obtained. DBA Name Recognition.
Name recognition is crucial to a company's success. Therefore, it is important to make the name you choose official. Name acknowledgment is achieved when the business name is used in all transactions, from marketing and sales to collecting money. Many business owners choose a name other than their given personal name in order to establish name recognition and to identify goods sold or services provided. Unless you operate a corporation or LLC, you will not be able to receive money or hold a business bank account under a business name until you have filed, and when applicable, published what is commonly referred to as a DBA. Why do you need a DBA?
A business that operates under any name other than its owner's personal name, or the name that was filed with the state, is legally required to file a DBA "doing business as" statement. The DBA statement may also be referred to as a fictitious business name, trade name or assumed name. In the case of corporations or LLCs, the statement can be used to inform the public of the previous legal company name that existed. With sole proprietorships, a DBA statement informs the public of the owner's personal name or the name under which they are conducting business. If I am a Sole Proprietor, do I need a DBA?
The most significant use of a DBA is the ability for a sole proprietorship to open a business bank account and collect money using a name other than its legal name. In many cases, more than one business can operate under the same DBA, and therefore, there is no protection or exclusivity offered by operating solely under a “doing business as” name. When registering your DBA, you may also find that there is a corporation, LLC, sole proprietorship, or other business entity using the same or a similar business name. What is the difference between a fictitious business name and a DBA "doing business as" name?
There's no difference between a fictitious business name and a DBA. A fictitious business name is often referred to as a DBA, an assumed business name or a trade name. If I have a corporation or an LLC name, do I also have to file a DBA under that name as well?
The articles of incorporation or organization are enough for official name registration and business name transactions with financial institutions provided that the entity uses its legal name. A DBA is simply a name statement registered with the state and not an official business formation like a corporation or an LLC. If your business is incorporated or organized under state law, you only have to register a DBA if you operate your business under a name other than its legal name as filed with the state. If I am operating a sole proprietorship under my personal name, do I need to file a DBA?
No. DBA filings are only required when you are operating a sole proprietorship or partnership under a name other than your personal legal name. For example, if your name is John Smith and you are operating or desire to operate a sole proprietorship as “John Smith Plumbing Services,” or a partnership as "Smith & Associates Plumbing," then you would not need to file a DBA to conduct business under that name. However, if you are a sole proprietorship, you must file a DBA to legally be called “Smith and Associates Plumbing.” Can someone else use my business name if I have a DBA?
In most states, DBAs, unlike corporations or LLCs, do not guarantee exclusive use of a name. In most cases, the state or county will file any correctly prepared fictitious business name statement, regardless of name conflict. What are the publication requirements?
State law differs regarding the need for DBA publication. Generally speaking, when publication is required, the DBA statement must be published once a week, in a specific newspaper that posts legal notices, for a duration of four consecutive weeks. Can I conduct business and open a bank account before my DBA has been filed?
You should not be conducting business under your fictitious business name until you have filed the DBA statement. In addition, most banks will not allow you to open a bank account until they have seen proof of the filed DBA. When you are doing business under a company name, you need a company bank account to accept payments for the company. Banks have restrictions about not accepting or cashing company checks using your personal account. Every bank is different. Most banks have policies and requirements in regards to a DBA statement. If you experience a bank employee who will not accept your DBA statement, you may want to try a different branch or bank. Make sure to keep the original copy for your records in case you need it for future business transactions. How will I know if my business name is already being used?
Some states do require a name check before filing a DBA form. You can conduct your own name search free of charge or hire someone to do it for you. What are the advantages of corporations and LLCs over a sole proprietorship or partnership?
Generally corporations and LLCs offer certain liability protection, tax advantages, and business flexibility that sole proprietorships and partnerships may not have. To read more about corporations and LLCs, please visit our law library for those specific topics. FREQUENTLY ASKED QUESTIONS ABOUT DBAs What is a DBA?
DBA stands for "doing business as" and is an official and public registration of a business name. DBAs are also known as Fictitious Names, Fictitious Business Names, Assumed Names, and Trade Names. Essentially, a DBA is the name of a business other than the owner's name or, in the case of a corporation, a name that is different from the legal or true corporate name as on file with the Secretary of State. If you are conducting business under any name other than your own name or your company's legal name, you must register the fictitious name with your state and/or county. Do I need to file a DBA?
DBA registration is necessary if your company conducts any business under a name other than your own name (for sole proprietors) or its legal name (for state-level entities such as corporations and LLCs). "Conducting business" can include marketing, advertising, letterhead, business cards, etc., in addition to actual business transactions. Also, banks generally require a DBA registration in order to open a business bank account. DBA registration is required if you anticipate collecting money under a name other than your own name or your true corporate name. I have a corporation -- should I file a DBA for my corporation?
Another common reason to register a DBA is when your state-level entity (such as a corporation or limited liability company) has a division or unit that conducts business using a variation of -- or a completely different name than -- the true name. For example, a bank whose true name is "ABC Bank Inc." might market their mortgage services on a website called "abcmortgages.com" and might have a separate division for their loan services called "XYZ Lenders," in which case they would most likely file DBAs for both "abcmortgages.com" and :"XYZ Lenders" in all jurisdictions in which these names are used. Do I need a DBA to open a business bank account?
Most banks do require a DBA registration to open a business bank account. In many states, they will require a certified copy of the DBA. What is an example of a DBA?
If your name were Jane Brown and the name of your business was "Donuts Unlimited," you would register your business as "Jane Brown, doing business as 'Donuts Unlimited.'" If you were a corporation named "ABC, Inc.," and you conducted business under the name "Express Cabinets," you would register your business name as "ABC, Inc., doing business as 'Express Cabinets.'" What types of names can be DBAs?
A DBA can be almost any name under which you are doing business. You cannot, however, make your DBA a corporate name such as XYZ, Inc. if you do not have a corporate name that is XYZ, Inc. In other words, when filing a DBA you cannot add "Inc." or "Corp." to your name to create the impression that your business is a corporation when, in fact, it is not. How soon am I required to file a DBA?
In most jurisdictions, it is best to file your DBA prior to beginning any use of the name. In some jurisdictions, a DBA filing is required within a specific period of time since having begun use of the name (usually within 30-60 days). Where should I file my DBA?
DBAs are usually filed at the state level and sometimes at the county level as well. You should file your DBA in the state and/or county in which you are conducting business under the name. In addition, certain jurisdictions require publication of your DBA. How long does it take to file a DBA registration?
Depending on the jurisdiction, most DBA filings take 1-4 weeks with some exceptions. Does filing a DBA exclude others from using the same name?
Generally speaking, filing a DBA grants little, if any, exclusivity to use of the name. In many jurisdictions, more than one applicant can file the exact same DBA. The only way to legally ensure exclusive rights to the use of a name is to register a trademark. For more information on trademarks, visit our Trademark area. Do I need a Federal Tax ID Number (EIN) for a DBA?
Legally, you are required to identify your business with one of two numbers: either your Social Security Number or an EIN (Employer Identification Number, a.k.a. Federal Tax ID Number). If you are a sole proprietor, your Social Security Number can be used on all of your government forms and other official documents, but most small business advisors recommend that you apply for an EIN and use that number instead. If you are a corporation, LLC or other state-level entity, you must obtain an EIN because your business is an entirely separate legal entity. For more information on EINs, please click here. When do I need to obtain a Federal Tax ID Number (EIN)?
You Should obtain a Federal Tax Id:
1 If you have a corporation;
2 If you have employees;
3 If you need to open a business bank account; or
4 If you want to build corporate business credit. How do I obtain a Federal Tax ID Number (EIN)?
It is a simple matter that takes only minutes:
1. Log on to the IRS website and download an SS-4 form;
2. Call the IRS number 800-829-4933
3. They will ask you questions regarding what you have on your filled-out SS-4 form
4. They will issue you an EIN number over the phone in about one minute
5. Write the number down in the box provided on the SS-4 form (upper right corner)
6. File in your Company Minutes/Record book | 
