What is a DBA? (Doing Business Ass) For what purpose is it used?

In this guide, you will learn what a DBA (Doing Business Ass) is, who needs it and why, and how to get a DBA.

DBA is an acronym that stands for doing business for. In short, DBA is used to give a new subname to a business you have formed in the United States in addition to its registered name.

You can think of the DBA name you will give to your company in Usa as a pseudonym used to promote a different product or service that does not coincide with the company's official title.

We can compare getting a DBA to an llc in Usa to Clark Kent carrying out his heroism under the name Superman.

Depending on what you do, DBAs may also be called fictitious names, trade names, or assumed names. These terms are often used interchangeably and all mean the same thing.

Why is a DBA needed?

Normally a business does not need a DBA and it is not always necessary. Although a DBA is not required under normal circumstances, it can be quite useful and necessary in some cases.

If you plan to do alternative business using a name other than the official name of your Usan company, you may need to register for a DBA name.

A DBA gives you greater credibility for your business, privacy when you don't want to use your personal name, and an effective way to market your business in a different direction.

There are several reasons to create a DBA. Here are some of them:

1. Creating a New Brand: If you want to rebrand your active business (i.e., an LLC or corporation) and create new products or services, you can create a DBA. Thus, you can launch another brand with a different name (DBA) under your official business name.
2. Privacy: If unregistered businesses, such as sole proprietorships and partnerships, use a personal name, you can register a DBA to keep your existing business name private.
3. Creating an Optional DBA: Every business can optionally create a DBA, even if it is not needed for a currently operating business.

An Example for a DBA

DBAs create fictitious aliases for official companies. Sometimes this is used to protect your identity as a business owner when you have a sole proprietorship or partnership that bears your legal name.

For example, a person named John Doe starts a company called John Doe LLL

If this operator named John Doe decides to sell the wooden products he designs while continuing his current business, he can create a brand for his new business under the name "Doe Woodworking", which he can register under his existing company.

Thus, a new DBA can be registered under the same company without the need to form a new company. In this way, John Doe has the convenience of continuing its initiatives in different sectors under a single business roof.

Do You Need to Choose a Name for a DBA?

Yes it should. Before registering a new DBA with an existing company, the name to be used for the DBA must not have been previously registered by anyone else at the state or local level.

If the name you have in mind has already been registered by someone else, many problems may arise due to possible conflicts or trademark registration situations.

Registering an llc or company name as a DBA is different from registering a trademark.

By registering your company name as a trademark, you ensure that no other person can use that name or logo in any state.

In this way, you ensure that your customers reach you, the right address, instead of a competitor.

It's important to note that DBAs offer little legal protection compared to regular companies. A DBA is a great way to own the right to use a name, but it generally does not provide the owner with a special protection shield (as do LLCs).

For the best legal protection, it is necessary to use DBAs and trademarks together.

How to Create a DBA?

If you have an llc, there are some general steps you need to follow to register a DBA under your existing company.

These steps and requirements are more accurately provided in the state where your company is currently incorporated. As with LLCs, laws regarding DBAs may differ in each state.

First, you need to make sure that the DBA name you want is not already used by others.

To do this, a business entity search is usually carried out online on the websites of the States.

State naming requirements also apply to DBAs.

In general, you cannot use banking-related words or terms that may be associated with a government agency. A name close to an existing company cannot be used either.

Once the name is determined, some forms downloaded from the state website are filled out, the necessary filing payments are made, and the application process is started by mailing the forms. Some states can also offer online application support for this.

Important Reminder:

When registering a DBA as a non-U.S. alien on an existing LLC, the state secretary's office will require that the forms you fill out be notarized.

For this, you need to work with a notary in the USA. The easiest way to do this is to get service from an online notary. notarize.com is the best and economical solution for this job

Even if you use a Registered Agent, agency or brokerage firm instead of doing the DBA registration yourself, the notary will still be required.

How Long Is a DBA Valid?

When you register a DBA, you need to know and follow the expiration date.

Most states require your DBA to be renewed, but the renewal time may vary by state.

For example, if you register your business in California, you are required to renew the DBA after five years.

In Texas, you can use a DBA for 10 years, while in New York, the DBA does not need to be renewed because there is no expiration date.

In many states, a DBA registration provides five years of tenure with no extension or renewal required. It is important to keep track of DBA validity dates to ensure your business remains in good standing.

Do I Need to Get a New EIN for a DBA?

No. If your business already has an EIN, a new EIN will not be obtained for the DBA because the IRS only assigns a single EIN to each business.

If you are creating a new DBA under your existing company that already has an EIN assigned, it is not possible to obtain a new EIN.

However, if you have just formed your company and have never received an EIN, you can obtain an EIN through your DBA during the first application.

If you are going to run a new project under a different name through your existing company, you can register a DBA instead of forming a new LLC.

However, if you consider costs such as the DBA fee to be paid to the state, the service fee you will pay to third parties, and the online notary fee, DBA may become more costly than forming a new company.