what is a dba

what is a dba

1 year ago 38
Nature

DBA stands for "doing business as" and refers to a name that a person or corporation uses to conduct business that is different from its legal name. A DBA name is also known as a "trade name," "assumed name," or "fictitious business name". The purpose of registering a DBA name is to notify the public that a particular person or business entity is conducting business under a name other than its legal name.

Here are some key points to keep in mind about DBAs:

  • DBAs are often used by sole proprietors, who are individual business owners who run their businesses themselves and use a business name other than their own name.
  • DBAs are required in many U.S. jurisdictions for businesses operating with fictitious names, and they are often used in conjunction with a franchise.
  • Generally, a DBA must be registered with a local or state government, or both, depending on the jurisdiction.
  • Registering a DBA name is a public notification to other businesses that the name is in use, as the DBA name becomes part of the public record.
  • A DBA is not a substitute for filing a trademark application, and it carries no legal weight in establishing trademark rights.
  • While a DBA offers multiple benefits, its not a formal business structure and doesnt offer any liability protection.
  • A DBA is not always required for a business, but it can be a useful tool, especially if youre planning on doing business using a name other than your individual name or your business entitys official name.

In summary, a DBA is a name that a person or corporation uses to conduct business that is different from its legal name. It is often required in many U.S. jurisdictions for businesses operating with fictitious names, and it is a public notification to other businesses that the name is in use. While a DBA offers multiple benefits, its not a formal business structure and doesnt offer any liability protection.

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