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Forming a DBA/FBN (Doing Business As, Fictitious Business Name)
Credit: ACorporation4Less.com
| What is a DBA? A DBA (doing business as) filing is an official and public registration of a business name with either the state or local jurisdiction. A DBA name is also called an assumed name, trade name, or fictitious business name. DBAs enable sole proprietors to conduct business under a name other than their own personal name and enable corporations or LLCs to do business under a name other than that which is used on the company’s articles of formation. An example of when a DBA filing might be used is as follows: Tom Jones is an electrician working as a sole proprietor and wants to call his business Qualified Electric. Tom Jones would register his DBA name Qualified Electric with the appropriate jurisdiction and would act as the owner of that DBA name. A second example, pertaining to a corporation is the following: Western Corporation is in several lines of business, including construction and painting supplies, and wishes to do business under names that better depict those lines of business ultimately seeking to develop marketing campaigns around each of the new names. Western Corporation might file a DBA for Complete Construction, and Color Me Painting. Each of these DBA filings would take place in the jurisdiction(s) where the respective businesses operate. Back To Top |
| Are DBA filings mandatory? An individual or company will be required, in most jurisdictions, to file a DBA if they choose to transact business under a name other than his/her own personal name or the name used on the company’s articles of formation. Back To Top |
| Why should I file a DBA? One of the most important reasons for filing a DBA is for banking purposes. Most banks will require the filed DBA registration prior to opening an account under the business name. In addition, the DBA filing becomes part of the public record, thereby giving other businesses official notice that this name is in use. Back To Top |
| Where should I file my DBA? DBAs are typically filed in the state and/or county where the principal business address or street address of the business is located. In some cases, it is necessary to file the DBA in other local jurisdictions such as the town clerk. Back To Top |
| Do I have to file a DBA before I can begin transacting business? In most cases the state or other local agencies require a DBA to be filed prior to transacting business under a name other than the owner’s personal name or the name listed on the company’s articles of formation. Additionally, without the DBA registration document, you may not be able to open a business banking account in the DBA name. Back To Top |
| When does a corporation or LLC file a DBA? A corporation or LLC files a DBA registration if it intends to transact business under a name other than the legal name that appears on the corporation’s or LLC’s state-approved formation document(s). The corporation or LLC must file the DBA with the appropriate state and/or county agency in the state in which the company is formed or foreign qualified. Back To Top |
| What words are prohibited in a DBA name? There are restrictions on the words you may use in your DBA name. You cannot use words that may mislead the general public into believing the company is something other than what is being portrayed by the DBA name. For example, you may not use corporate name endings such as Inc., Incorporated or Corp. if the company is not filed as a corporation. Additionally, you may not use Limited Liability Company, Ltd. or LLC if the company is not filed as an LLC. Back To Top |
| How many DBA names can I register? There are no state and/or county restrictions as to the number of DBA names you may file. Back To Top |
| Can someone else use my DBA name? Registering a DBA does not reserve the name against future use by another party. Registration of a DBA or fictitious name is for public notice only and should not be presumed that the registrant’s rights to own or use the name are protected. Back To Top |
| Do DBA filings expire? DBA filings can be valid for any number of years and may or may not expire. Each state and/or county where the DBA is registered establishes the expiration date. If your DBA filing expires, the appropriate agency will notify you at the address you have on record with that agency and you will need to re-file the DBA name. Therefore, maintaining a current DBA business address with the appropriate agency is very important. Back To Top |
| What are the publication requirements? Publication requirements vary depending on the state and/or county in which the DBA is filed. Many states do not have publication requirements for DBA filings. However, some states do require that announcement of the DBA filing be published in a specific newspaper for a specific time frame. In some cases you will need to re-file your proof of publication with the appropriate agency. ACorporation4Less.com will complete the publication requirement(s) associated with your DBA name if you select to file your DBA using ACorporation4Less.com. Back To Top |
| How do I get started with the filing process? ACorporation4Less.com’ DBA filing service is the easiest way to get started. DBA filings may be needed in the state, county, or in some cases, possibly the city where you are planning to use the name. There are also naming issues and publication requirements that are specific to each government jurisdiction. Back To Top |
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