When does your company require a DBA, and what is it?

You’ve just launched a firm and have begun representing it to clients and suppliers, but you’re not sure whether to use your own name in these dealings or pursue a DBA.

Many new firms and start-ups will register as DBA in order to show the public that they are not just a one-man operation. However, not all groups can benefit from acquiring this status through the application process. You can learn your best-case scenario by consulting a professional Troy tax accounting firm. 

A DBA is a what?

DBA stands for “Doing Business As,” and it’s typically used when a person or business wants to use their own name in conjunction with their business or trading activities. A trade name is sometimes known as a fictional name or a business name.

To separate your personal identity from your business, you can register a DBA. It could be a question of personal taste for reasons of economic convenience or a matter of strict legal need.

A Doing Business As (DBA) certificate is required by law in the majority of states. Different states and corporate structures have different filing prerequisites.

Which Companies Can Benefit from a DBA?

Having a DBA is not necessary for every company. The preference of the business owner, the rules of the relevant jurisdiction, and the nature of the legal entity itself all play a role in determining the necessity.

Companies That Can Be Either a Partnership or a Sole Proprietorship

If your sole proprietorship or general partnership will be doing business under a name other than your own or your business partner’s complete legal name, you must register a DBA.

The fact that the business and its owners are one and the same characterizes unincorporated general partnerships and sole proprietorships. Therefore, there is no need to register the firm name or formation documents with a government agency.

The franchise itself does not require a DBA, although many franchisees choose to get one nonetheless.

Franchisees often organize as corporations or limited liability companies, but using a DBA allows them to connect with a well-known brand on a global scale.

Legal Entities Such As Corporations, Limited Partnerships, and Limited Liability Companies

There is no need for a corporation, limited liability company, or limited partnership to submit a DBA because the entity and name have already been registered with the state.