Key Takeaways

  • A DBA license allows businesses to legally operate under a different name than their registered legal entity.
  • It’s commonly used for branding, anonymity, and running multiple ventures under a single entity.
  • Filing typically involves checking name availability, submitting an application, and possibly publishing a public notice.
  • DBA licenses are not the same as business licenses and do not provide liability protection or trademark rights.
  • Costs and renewal cycles vary by state and county, with California requiring publication in a local paper for compliance.
  • You may need a DBA license to open a business bank account or obtain certain business permits.
  • LegalZoom and government sources note that you can file multiple DBAs, but each must be registered and published separately.
  • You can connect with top-rated attorneys on UpCounsel for guidance on filing a DBA or evaluating alternatives like forming an LLC.

DBA company documents allow a business owner to create a business using a fictitious name, whether that business is a sole proprietorship, limited liability company (LLC), or a corporation. The documents are especially useful when it comes time to set up bank accounts in the name of the fictitious business or enter into legal agreements and contracts with other businesses.

Most states require an individual to register the DBA in order to be recognized by customers and establish that no other businesses with that name are in existence in the state. This helps avoid confusion in the minds of consumers. An example of a DBA would be John Doe doing business as (d/b/a) “John’s Ski Shop” or (d/b/a) “J.D.’s Donuts.” Another term for a DBA is a trade name.

How to Register a Trade Name

Registering a DBA or a trade name is a very simple process and often one of the first steps taken after a business has been formed. The following information is usually required:

  • DBA or trade name
  • Date when company was formed
  • Type of business conducted, i.e. what goods or services are offered
  • Name of individual or legal entity that owns the business
  • Signature of notary public to authenticate the document

A trade name registration is usually good for five years, and can easily be renewed after that time. Check with your Secretary of State’s Office for specific requirements. Depending upon the state where the business is located, a DBA registration can have other names, such as:

  • Assumed Name Statement
  • Assumed Business Name Certificate
  • Business License Application
  • Fictitious Business Name Statement

What Are DBA Documents and Why Are They Important?

DBA (Doing Business As) documents are essential for any business owner who wishes to operate under a name different from their registered legal business name. These documents serve as a public record, informing customers and other entities about the person or business entity behind the trade name. Registering a DBA helps maintain transparency in business dealings and allows you to create a recognizable brand for your company. DBA documents typically include your business's legal name, the DBA name you intend to use, and relevant details about your business operations. Most states and counties require these documents as part of compliance, ensuring that businesses do not mislead customers about their identity.

Who Should File a DBA License?

A DBA license should be filed by anyone conducting business under a name that does not include their personal legal name or their company's full legal name. This includes:

  • Sole proprietors using a business name instead of their own.
  • Partnerships and corporations using names not listed in their original formation documents.
  • Franchise owners operating under a franchised name not registered as their entity name.
  • Out-of-state entities doing business in a new jurisdiction under a different name.

Some jurisdictions may also require DBAs for business name changes, mergers, or expansions into new markets​.

Reasons to Use a DBA

DBAs are very common and business owners have different motivations for creating a fictitious name for their company:

  • Ability to create a memorable name that attracts business. A catchy name often works to set a business apart from the competition. Consider all the fun names that exist for beauty salons like “New Wave Hair Designs” or “Better Bangs for Your Buck Salon.”
  • Desire to create clarity as to the purpose or goods/services offered. Using the above example, if John Doe only used his name, consumers would not be able to quickly assess the purpose of the business, whereas “J.D.’s Donuts” immediately lets the consumer know what to expect when doing business with the company.
  • Desire for ownership to remain anonymous. It can be annoying enough to field a continuing array of solicitations from companies offering things during business hours, but many people don’t also want to receive calls and advertising at home as well.

Is a DBA License the Same as a Business License?

No, a DBA license is different from a business license. A DBA (Doing Business As) simply gives you the legal right to operate under a fictitious name, while a business license authorizes you to conduct business in a specific city or county.

  • A DBA license is filed with the county (and sometimes the state) to disclose the owner behind a business name.
  • A business license is issued by a city or municipality and allows the business to operate legally within its jurisdiction.

Both may be required to legally operate a business, depending on the local laws​.

Common Scenarios That Require DBA Documents

Businesses often use DBAs for various reasons, such as:

  • Branding: When a company wants to establish a different brand without forming a new legal entity. For example, a restaurant owner with a legal business name "Smith Enterprises LLC" may choose "Sunset Bistro" as a DBA to present a more appealing name to customers.
  • Multiple Business Operations: If a single legal entity runs multiple businesses, it can use different DBA names for each to distinguish them. For instance, a parent company that offers both accounting services and marketing consulting can use separate DBAs for each line of business.
  • Expanding Services: When a business wants to explore a new market or offer a different product line, registering a DBA helps avoid confusion with the original brand.
  • Sole Proprietorships: If you're a sole proprietor and want to use a business name other than your own personal name, you'll need to file a DBA.

DBAs and Bank Accounts

Having a DBA is especially useful when setting up a business bank account. It’s a good idea to differentiate business bank accounts from personal accounts. Many banks actually require a DBA in order to open a business bank account, and it is a necessity in order to deposit or cash checks collected under the fictitious business name. DBA documents are required when setting up a business bank account, so be prepared.

  • Photo ID or passport photo. These help to establish that the names found on all documentation matches the name of the individual opening the account.
  • State-issued DBA certificate. This certificate provides the bank with official documentation that the business is registered to do business in the state.
  • Business licenses or permits. If the jurisdiction in which the business requires special licenses or permits, these should be presented when opening an account. Examples are contractor licenses, liquor licenses, resale permits, and health permits.
  • Tax ID information. Depending on the type of business, this could be a Social Security Number (SSN), Individual Taxpayer Identification Number (INIT), or Employer Identification Number (EIN).
  • Articles of Incorporation/Articles of Organization or Partnership Certificate. Depending on the type of business, the names of all of the owners in the partnerships, members of the LLC, or officers of the corporation must be included. If these names are not on the official documents, they must be presented in a separate, authenticated document. Articles of Incorporation are usually only required if the registered business will be conducting business under more than one name using a DBA for each different name

In today’s business world, companies devote a lot of effort and capital to creating a memorable brand. A DBA allows the business to build upon the goodwill and degree of integrity that consumers associate with the name that appears on websites, packaging, signage, and other marketing collateral.

How to Apply for DBA Documents: Step-by-Step Guide

  1. Choose Your Trade Name: Select a unique and descriptive DBA name. Ensure it aligns with your brand and isn't already in use within your state. Some states have online databases to check name availability.
  2. Understand State Requirements: Different states have varying regulations and forms for filing DBA documents. Check with your local state business office or county clerk for the specific process in your region.
  3. Complete the Application: Fill out the required DBA registration forms. You’ll need to provide information like your legal business name, the DBA name, business address, and the type of business.
  4. Submit the Application: Submit your application to the appropriate state, county, or city office. Some states require you to file at both the state and county levels.
  5. Publish a Notice (if required): Certain states mandate that you publish a notice in a local newspaper announcing your new DBA. This public notice helps inform the community and ensures transparency.
  6. Receive Your DBA Certificate: Once the filing is approved, you’ll receive a DBA certificate or a similar document. This certificate is essential for conducting business under your new trade name.

Special Requirements for Filing a DBA in California

In California, DBA registration is handled at the county level, and there are specific steps and timelines to follow:

  1. Name Search: Conduct a name search through the county clerk’s website to ensure availability.
  2. Fictitious Business Name (FBN) Statement: File an FBN with the county where the business is located.
  3. Out-of-State Filers: Non-California businesses must file with Sacramento County if they plan to do business in the state.
  4. Publication Requirement: California mandates that the FBN statement be published in a generally circulated newspaper in the county once a week for four consecutive weeks.
  5. Deadline: Publication must begin within 30 days of filing the FBN.
  6. Proof of Publication: An affidavit must be filed with the county after the publication to complete the process.

These steps ensure transparency and legal compliance with California’s DBA laws​.

Costs and Renewal of DBA Documents

Filing fees for DBA documents vary by state and can range from $10 to $100. It’s important to note that some states also require periodic renewals of the DBA, usually every five years. Keep track of the renewal dates and costs to ensure compliance. Failure to renew could result in the cancellation of your DBA, making it illegal to operate under that name.

Legal Considerations When Filing DBA Documents

While DBA documents allow you to operate under a trade name, they do not offer legal protection for the name itself. Unlike trademarks, DBAs do not provide exclusive rights to the business name. Therefore, if you're concerned about protecting your brand, consider registering a trademark. Additionally, a DBA does not provide liability protection. If you want to limit personal liability, forming an LLC or corporation might be a better option. DBA documents simply give you the legal right to conduct business under a different name, so it's crucial to understand their limitations.

Can You Have Multiple DBA Licenses?

Yes, businesses can file for multiple DBA licenses. Each name must be registered separately following the standard DBA process, including:

  • Conducting separate name availability checks
  • Filing individual FBN statements with the county
  • Paying separate fees for each
  • Meeting publication requirements (if applicable)

This is especially useful for companies running different brands or divisions under one legal entity. However, managing renewals, publications, and compliance across multiple DBAs can become complex, so it's advised to consult a legal professional for guidance.

Frequently Asked Questions

Do I need a DBA license and a business license?Yes. A DBA license allows you to use a different business name, while a business license authorizes you to operate in a specific location. They serve different purposes and are often both required.

Can a DBA be trademarked?No, registering a DBA does not provide trademark protection. You must file a trademark with the U.S. Patent and Trademark Office to secure exclusive rights to your business name.

How long does a DBA license last?Typically, a DBA license lasts five years, though this can vary by state or county. Be sure to track your expiration date to renew on time.

Is it mandatory to publish a DBA in a newspaper?Some states, like California, require you to publish a notice of your DBA in a local newspaper. This ensures public awareness and prevents fraud.

Can I use the same DBA in multiple states?No. You must file your DBA separately in each state (and often each county) where you plan to use the name. Always check local requirements for registration and compliance.

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