What is the definition of DBA? This guide provides all of the information you need on the acronym DBA, like its definition, how to use it, and more!
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Kevin
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February 6, 2022
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Common Questions
What is the definition of DBA? This guide provides all of the information you need on the acronym DBA, like its definition, how to use it, and more!
There are so many types of business and business jargon, like an LLC (limited liability company), C corporation, S corporation, general partnerships. or sole proprietor/sole proprietorship. According to academic sources, the abbreviation DBA stands for “doing business as.”
This is used in business to refer to a company’s trade name, assumed name, or fictitious name. If you choose not to connect your name to your business and instead operate as a DBA, this can prevent legal ramifications from coming back to you as an individual. It can keep you separate from the business. This can also be useful in case of bankruptcy.
It can be a good idea for the business owner to create a DBA name for their business entity that is separate from their legal name or personal name. It is also separate from your SSN (social security number) and instead uses an EIN (Employer Identification Number or Federal Tax ID Number). There are certain legal protections that this business structure provides to an individual when they undergo DBA registration.
If you do business as an individual, there are some risks involved. If the company goes bankrupt, you go bankrupt. If there is legal action taken against your business, that means there is legal action taken against you as an individual.
While this may not seem like a big deal, especially if you are the sole employee of your company, it can be dangerous. If you do not operate under a different name, this can affect things like your personal credit score, tax information, legal ramifications, and more.
There are several kinds of businesses that should have a DBA and some that do not need one. It is recommended to use a DBA for businesses like a sole proprietorship and a franchise. While S corporations and C corporations, along with limited partnerships and LLC, don’t need a DBA name, they still have the option to do so.
Sometimes, corporations or LLCs will register a DBA name when they are opening a subsidiary or a new line of business. However, the name of your business may not be different from the LLC name, for example.
In order to register a DBA name, you will have to deal with the government. Often, the county clerk’s office requires a cashier’s check or money order to pay a filing fee, as well as submit incorporation documents or other paperwork. Sometimes, you will need to place an ad in a local newspaper with the fictitious business name or a different name for registering purposes to show that you gave “public notice” of the business.
Sometimes, you can file for a DBA online. However, some states and counties will want specially notarized documents. Often, states require a renewal after a certain amount of time. It is not good to let your DBA registration lapse, as it can lead to fees or bad business.
You also might need to re-file a new DBA if the information of the business changes. This could include a change in officers, members, or partners, or other crucial information that has changed. You usually do not need a business attorney to file a DBA, which makes it easy.
According to The Free Dictionary, DBA has other meanings besides “doing business as.” Make sure to think about the context DBA is being used in before assuming its meaning.
The abbreviation DBA stands for doing business as. This is a business entity name of a legal business name that small business owners use to separate their lines of business and make sure that they exist as a separate legal entity from their business.
This ensures that the individual stays in good standing financially and protects their personal assets even if the business fails.