What Is a DBA (Doing Business As) Name?
If your business plans to operate under a name different from its legal company name, you will likely need to register that name with the government. A "Doing Business As" name, or DBA, allows you to legally use a trade name for marketing and branding while keeping all operations under your existing legal entity. This process ensures the public knows who is behind the business, a requirement in most jurisdictions.
Dappr can manage the entire DBA registration process for LLCs and corporations on the platform. This service is for established companies that wish to add a trade name. Dappr does not file DBAs for individuals operating as sole proprietors. Once you request the service, Dappr handles the complex, jurisdiction-specific requirements, giving you a simple way to expand your brand.
Risk of operating without a DBA
If a DBA (Doing Business As) is required to be filed and is not, the consequences can vary depending on the jurisdiction, but some common consequences include:
Monetary fines: Some jurisdictions impose fines for failing to file a DBA, which can range from a small amount to hundreds or thousands of dollars.
Legal action: If a third party is harmed as a result of a failure to file a DBA, they may take legal action against the business.
Inability to conduct business: Some jurisdictions may prevent the business from operating under the unregistered DBA.
Loss of personal liability protection: Failing to file a DBA can also put the owner's personal assets at risk in the event of a lawsuit.
Overall, not filing a required DBA can have significant legal and financial consequences, so it's important to make sure to comply with the relevant regulations.
Why use a DBA?
Companies register DBAs for several common reasons:
Launching a New Brand: A DBA allows you to market a new product or service with a unique identity. For example, "Global Tech Inc." could launch a consumer electronics line under the DBA "Connect Home."
Operating Multiple Businesses: You can run several distinct businesses under a single LLC or corporation. For example, "Summit Holdings LLC" could use the DBA "Summit Property Management" for its real estate arm and "Summit Landscaping" for its yard services.
Creating a Better Name: A DBA can be more descriptive or marketable than your registered legal name. "JS Enterprises LLC" might register the DBA "Main Street Web Design" to better communicate its services to customers.
Costs and processing
The costs for filing a DBA varies by jurisdiction. Dappr provides filing in all 50 states. Most states charge a filing fee. Processing can also vary by jurisdiction.