In the U.S., a DBA lets the public know who the real owner of a business is. The DBA is also called a fictitious business name or assumed business name. It got its origins as a form of consumer protection, so dishonest business owners couldn’t try to avoid legal trouble by operating under a different name.
Is doing business as the same as a fictitious name?
Generally, the function of the DBA or fictitious name is to show the buying public the identity of the business owner. It allows the public to know and have the contact details of the person handling the business. A fictitious name has the same meaning as a DBA, and both terms are interchangeable.
Can you run a business with just a fictitious name?
As a sole proprietor, you can legally conduct business in that state under your fictitious business name, but you won’t have any limited liability protection. … If you want to use a different name you will have register your DBA name in that state by filing the appropriate documents.
What is the benefit of a fictitious business name?
Some of the main advantages of filing for a fictitious business name are privacy protection, increased flexibility, and enhanced value. Certain advantages may benefit different types of business structures more than others.
What is the doing business as name of your business?
DBA stands for “doing business as.” It’s also referred to as your business’s assumed, trade or fictitious name. Filing for a DBA allows you to conduct business under a name other than your own; your DBA is different from your name as the business owner, or your business’s legal, registered name.
What are the disadvantages of a DBA?
Overall, the disadvantages of a DBA include:
- As an owner, you are personally liable for all debts accumulated by your business.
- As an owner, you do not exclusively own rights to your name.
What does fictitious name mean?
In the case of a business owned by an individual, a “fictitious business name” is any name that does not include the last name (surname) of the owner, or which implies additional owners (such as “Company”, “and Company”, “and Sons”, “Associates”, etc.).
Does a DBA need a separate bank account?
You do not need to have separate bank accounts unless you also have separate DBAs. Many banks do not even charge you to have separate bank accounts and doing so can make the accounting and tax process much easier.
Does a DBA need an EIN?
Your DBAs are just your business nicknames, and therefore, you won’t have a separate EIN for a DBA. Not all businesses need an EIN. Whether you’re required to have one depends on how your business is organized and what kind of taxes it pays.
Should I use my name for LLC?
You should always place the initials “LLC” after your business name—including placing it on your correspondence, contracts, forms, business cards, website, signs and marketing materials.
Is a DBA better than an LLC?
The biggest difference between a DBA and an LLC is liability protection. … On the other hand, an LLC provides limited liability protection. The business owners’ personal property remains completely separate from the business. In addition, a DBA does not provide any tax benefits.
What is a DBA example?
For example, business owner John Smith might file the Doing Business As name “Smith Roofing.” Corporations and limited liability companies (LLCs) may register DBA names for specific lines of business. For example, Helen’s Food Service Inc. might register the DBA “Helen’s Catering.”
How do I protect my business name?
Trademark. A trademark can protect the name of your business, goods, and services at a national level. Trademarks prevent others in the same (or similar) industry in the United States from using your trademarked names.
Where can I check if a business name is taken for free?
Use the USPTO’s free trademark database and to get yours registered. Simply go to http://www.uspto.gov/main/trademarks.htm and click “Search.” Then follow the instructions you see on the screen.
How do I choose a business name?
Here are 12 helpful suggestions on how to come up with a winning name for your business:
- Avoid hard-to-spell names. …
- Don’t pick a name that could be limiting as your business grows. …
- Conduct a thorough Internet search. …
- Get the .com domain name. …
- Use a name that conveys some meaning. …
- Conduct a trademark search.