Differences between DBA and Entity Name
An assumed name is any name used for business purposes other than the legal name. A DBA (doing business as) name is an assumed name. Businesses use assumed names for flexibility to operate under a more marketable name than their legal name. Filing an assumed name promotes transparency by publicly identifying the true business owner. This deters fraudulent activity. Sole proprietors, partnerships, LLCs and corporations can all use assumed names by registering DBAs with the county clerk or Secretary of State. Assumed name laws protect consumers by enforcing business ownership transparency.
Assumed Name Definition
An assumed name provides state-level rights to operate a business under a name other than the legal name. Sole proprietors, partnerships, LLCs and corporations can use assumed names by registering DBAs. The purpose is to publicly identify the true business owner, which deters fraud. However, assumed names do not provide federal trademark protection. Businesses use assumed names for flexibility to operate under a more marketable name. Filing an assumed name promotes transparency. Assumed name laws protect consumers by enforcing ownership transparency.