“Doing Business As” or DBA for short is a legal term that is often called a fictitious name, false name, or business name. It is a declaration of natural and legal persons that allows them to do business legally using a fictitious name in a very easy and economical way.
Filing a DBA also allows business owners to accept payments legally, open bank accounts, and advertise under fictitious names of their choice. Having a false name can also prevent fraud, as doing business under a name other than your legal name without the proper documents is illegal.
So why would a business entity want to present a fictitious name?
There are many reasons for this. First, when you are a sole proprietor, you have the option of using a business name instead of your own name. You also don’t have to create a formal entity like a corporation, partnership, or even LLC. Legal entities, on the other hand, can conduct multiple businesses without having multiple business entities.
DBA statements are generally used in franchise business. Here, the franchisee conducts business using the franchise brand but, at the same time, also has its own legal name.
Filing a DBA online is not as complicated as it sounds. In most cases, all you need to do is sit at your computer, answer the questionnaire, and wait for it to be reviewed and processed. However, in some states, especially California and other areas, business owners must publish a notice of their intention to operate under a fictitious name in the newspapers within a specified period of time. Business owners are also required to register the name in the Registry of Deeds. This is to protect people from fraud and other legal problems that may arise in the future.
Filing a DBA and the proper use of fake names can be a powerful marketing and branding tool for businesses. It is important for business owners to understand its purpose in order to maximize its uses.