DBAs SIMPLIFIED

If the name you chose for your company no longer fits your vibe, but you don’t want to go through the hassle of changing everything, a DBA could be the perfect solution for you. This is just one reason why you might want to file a DBA, among many others.

DBA (Doing Business As), also known as an Assumed Business Name, Trade Name, or Trading Name, is an alternate name for your company.

Okay, But What Does That Mean?

Let’s start from the beginning. Let’s say you’re an amazing cook—like, really, really good, as in Gordon Ramsay has nothing on you. Someone tries your food, asks you to cook for them, and you do. You get paid, everyone is happy and full, but you don’t have a registered business. This means you’re operating under your own name, and if something goes wrong, like you accidentally drop a band-aid in someone's food and they decide to sue you, you are personally liable for the damages.

Yes, they can come after your personal assets. This is why it’s a good idea to get yourself an LLC.

What About the DBA? 

I’m getting there.

So, you get smart and set up your LLC like the boss that you are. You name it after your childhood cooking hero, SpongeBob, and now you have registered "Spongy Flavors LLC." Your LLC will protect your assets, so if anything goes wrong, the LLC will be liable instead of you.

Then, your business does so well that you decide to expand into the bakery industry. However, "Spongy Flavors LLC" doesn’t really fit what you want to convey. This is where a DBA comes in handy. You file a DBA for your LLC and call it "Patrick Buns." Now you have a restaurant called "Spongy Flavors LLC" and a bakery called "Patrick Buns." Both operate under the same entity, with the same protections, just with different names and purposes. There’s no need for a name change or a different EIN—you get the best of both worlds.

You can also get a DBA to operate the same business under a different name. For example, if "Spongy Flavors LLC" isn’t resonating with your clientele anymore and you want to rebrand your restaurant as "Flavor Bistro," you can definitely do that. You’ll have your LLC doing business as "Flavor Bistro."

If you get a DBA for yourself and not for your LLC, the DBA won’t provide any liability protection. You will still be personally liable, which is why it’s important to form an LLC or Corporation first, and then file the DBA for your company.

Using a DBA name does not grant you legal ownership of that name. If you haven’t formed a legal business entity and registered the DBA, someone else could potentially claim the same name for their business. Even if you’ve used the DBA for a long time, it doesn’t provide you with exclusive rights to it. However, don’t worry too much—DBA names can be endless, so it’s rare for someone to take yours. If you’re really concerned about protecting the name, you can trademark it to make it exclusively yours.

There you go! Go get funky with it, get going, and start making money. You’re now one step closer to living your dream life!

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