Key Takeaways

  • A DBA (“doing business as”) allows an LLC to operate under a different name without forming a new legal entity.
  • DBAs are useful for branding, business expansion, and operating in new states.
  • Each state has different filing requirements; some require publication or renewals every few years.
  • You can operate multiple DBAs under one LLC, but each must be registered separately.
  • Failing to register a DBA can result in legal and financial penalties.
  • A DBA does not provide liability protection separate from the LLC.

Business owners add a DBA to an LLC when they need to conduct business using a different name than their company's legal name. This could be necessary if your business expands to a new state where your original LLC name is already taken. To add a DBA, you must file the required paperwork and gain approval from the appropriate state agency.

LLC Legal Status

To form an LLC, you need to file articles of organization in your respective state. You must choose your business' legal name, which has to be easily discernable from other entities that are already operational in the state. Your name must also include the abbreviation “LLC” or the words “Limited Liability Company.” 

What Is a DBA?

Companies that want to conduct business with a different name than that of the LLC must file a DBA, which stands for “doing business as.” If your legal name is “Deena's Nails” and you want to call yourself “Amazing Nails by Deena,” then you need to have a DBA on file. 

The process for registering a DBA may differ slightly by state, but the general process includes registering the fictitious name with your local county or state agency. Once the DBA is successfully registered, the business has the legal right to conduct business under either the official name or the new fictitious name within the jurisdiction of the county or state where it's registered.

Benefits of Using a DBA for an LLC

Using a DBA allows LLCs to adopt flexible branding and expand into new markets without creating a new legal entity. Here are some of the main advantages:

  • Branding flexibility: Market products or services under distinct names tailored to specific audiences.
  • Multiple business lines: Operate various business types under the same LLC (e.g., "ABC Ventures LLC" doing business as "ABC Marketing" and "ABC Real Estate").
  • Cost-effective: Registering a DBA is typically cheaper and faster than forming a separate LLC for each venture.
  • Legal compliance: A DBA ensures your LLC remains legally compliant when using alternative names in business transactions.
  • Privacy protection: You may avoid publicly using the LLC's official name in customer-facing interactions.

When Do You Need a DBA?

Businesses who want to receive checks in the company name would need to have a DBA on file. Taking the time to set up the DBA proves you're serious about not commingling your personal and business income and expenses. This is important when it comes to filing taxes. It's very important for small business owners to file a DBA. Without the legal right to use a fictitious business name, you could be opening your business up to fines, criminal charges, and even lawsuits. 

How to Add a DBA to an LLC

  1.  Identify what documentation is required and where you must file the DBA registration.
    • Some states like Mississippi, New Mexico, Alabama, and Kansas don't require business owners to file their fictitious business name.
    • Other states have different rules on where it must be filed, which is why you need to research the specifics of the particular state you plan to do business in.  
    • Check with the U.S. Department of Commerce for specific state requirements on where to file. In some states, it's Secretary of the State, while others are with the local County Clerk.
  2. Run a search to see if the name you've chosen is already registered. If it's unavailable, the registering agency will ask for your backup names and run those until it finds one that is not already taken.
  3. Once the name search comes back clean, fill out the documentation, which asks for the following:  
    • LLC legal name
    • Approved DBA name
    • Your personal information (name and address)
    • Business address
  4. Present the signed and dated form and pay the filing fees.
  5. Keep in mind that DBAs aren't perpetual but are active for a specific amount of time, often four to five years.

Step-by-Step: How to Add a DBA to an LLC

Here is a generalized breakdown of the steps to register a DBA for your LLC, which may vary by state:

  1. Check Name Availability
    • Run a search through your Secretary of State or local agency to ensure the DBA name is not already taken or too similar to existing businesses.
  2. Review State and Local Requirements
    • Determine whether your state registers DBAs at the state level, county level, or both. Some states also require publishing a notice in a local newspaper.
  3. Prepare Your DBA Application
    • Typical information includes:
      • The full legal name of the LLC
      • The proposed DBA name
      • Registered agent and business address
      • Signatures of authorized LLC members
  4. Submit the Application and Pay Filing Fees
    • File with the appropriate state or county agency. Fees generally range from $10 to $100.
  5. Publication Requirement (If Applicable)
    • Some states (e.g., Florida, New York) require publication of a legal notice in an approved newspaper before or after filing.
  6. Receive Confirmation and Begin Using the Name
    • Once approved, you may start using the DBA name in contracts, advertising, and customer interactions.
  7. Renew When Required
    • Many states require DBA renewals every 3 to 5 years. Failure to renew may lead to expiration or penalties.

Setting Up a DBA in Florida

  1. Like other states, Florida doesn't allow a business to have the same name as or a name very similar to another business.
  2. When choosing your fictitious name, be mindful that it can't contain “corporation” or any derivative of that entity type.
  3. Filing a fictitious business name requires that you publish a statement in the local newspaper that announces your intent to do business under a fictitious name.
  4. Be sure you have all the information necessary when you fill out the DBA registration form. In Florida, you need the following:
    • Registration name
    • Business address
    • Each owner's name and personal address
    • Federal employer ID number for corporations
    • Publication certification
  5. In Florida, DBAs expire after five years.

Common State Differences for DBA Filing

While the process to file a DBA is generally similar, key differences by state may include:

  • California: Requires filing at the county level and publication within 30 days.
  • Texas: Requires a separate certificate for each county where the DBA will be used.
  • New York: Requires publishing a notice for six consecutive weeks and filing proof with the county clerk.
  • Illinois: Filing occurs at the county level, with renewals every 5 years.
  • Arizona: Publication is required unless the business is in certain counties that maintain online public records.

Always check with your local Secretary of State or county clerk to confirm up-to-date rules.

DBA Usage and Things to Consider

  • For LLCs that want to do business in a new state, start by conducting a business name search.
  • Businesses whose legal names are too similar to an existing business in the new state will only be allowed to operate the LLC with a DBA. Don't do business under the legal LLC or you could face fines. Although you're operating under a DBA, legal documents are still signed using the LLC name, noting it's doing business as "X."
  • For each new state the LLC plans to do business in, a new DBA must be registered before conducting business there.  

Important Legal and Practical Considerations

When operating under a DBA, keep in mind the following:

  • DBA ≠ Separate Legal Entity: A DBA is just a name. It does not create a new legal identity or protect you from liability.
  • Taxes: A DBA does not affect how your LLC is taxed. The IRS still views your LLC as the taxable entity.
  • Banking: To open a business bank account under the DBA, you’ll often need your DBA certificate and LLC documentation.
  • Contracts: Legally binding agreements should list the LLC's full name followed by “doing business as (DBA name).”
  • Multiple DBAs: You can file multiple DBAs for one LLC, but each requires separate registration and fees.

Frequently Asked Questions

  1. Can an LLC have more than one DBA?
    Yes. An LLC can register multiple DBAs, allowing it to operate under different names for various business lines or in different locations.
  2. Does a DBA protect my business name?
    No. A DBA only allows you to use the name. It does not provide trademark protection. Consider registering a trademark for exclusive rights.
  3. Do I need to publish a notice when filing a DBA?
    Some states require publication of a DBA notice in a local newspaper. This is especially common in states like Florida and New York.
  4. Can I use my DBA immediately after filing?
    In most cases, you must wait for approval or confirmation from the filing agency before using your DBA in business operations.
  5. What happens if I don’t renew my DBA?
    If you don’t renew your DBA, it can expire and become unavailable for your use. You may also face late fees or penalties in some jurisdictions.

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