A DBA name, also known as a false name, fictitious business name, or business name, is a way for businesses to operate under a different name than their legal name. This is often done to make the business name more concise, easier to remember, and easier to pronounce. For example, McDonald's Corporation is legally known as McDonald's Corporation, but they use the DBA McDonald's. When it comes to setting up a DBA, the first step is to submit a legal document in the state in which you operate.
This document, called a Doing Business As (DBA) filing, allows your company to legally operate under a business name. It contains information such as the fictitious name you want, the description of the company and the legal name, as well as names and addresses of all landlords. A DBA can be used in many different ways. For example, if you own an LLC called Joe's Handyman Services LLC and you want to start offering plumbing and general mechanical services, you can register DBAs for “Joe's Mechanic Services” and “Joe's Plumbing Services” without having to create a new business entity. Additionally, if you already have an established company and want to create an independent identity for an aspect of your business without having to create an LLC or other independent business structure, you can file a DBA. It's important to note that registering a DBA does not replace the need for legal training.
To avoid any inconveniences, it is important to ensure that you have a legal entity before submitting a DBA application. Additionally, filing a DBA does not mean that your company will operate under a false name; when used in conjunction with your legal structure, it can help your business grow and prosper.
