Introduction to DBA (Doing Business As) Tradestyle
A DBA (Doing Business As) Tradestyle is the name a business uses to operate. It may be referred to as a trade name or FBN (Fictitious Business Name). A company requires a DBA to operate under a name other than its legal name. For example, to start a landscaping company, John Smith needs a DBA Tradestyle to operate under “Green Earth Landscaping”. In California, a DBA is required to legally operate under a trade name.
A DBA allows companies to operate under an “assumed” or “fictitious” name. This allows sole proprietors and partners to do business without using their personal names.
Benefits and Use of DBA
Using a DBA provides flexibility in branding and marketing. Businesses operating as DBAs need an EIN to open checking accounts. Reasons for a DBA include marketing and privacy.
A DBA lets you operate under a chosen name. This approach enables companies to create identities distinct from legal names, mainly for branding and privacy.
DBA Registration and Examples
Registering a DBA notifies the public of operating under a non-legal name. It is consumer protection, preventing dishonest operators from avoiding legal issues.
If your LLC is XYZ Enterprises but you open a store called ABC Liquor, ABC Liquor would be your DBA.
Information about DBA Trade Style
DBAs are important for information systems reliant firms like banks, needing database administrators. Their responsibilities include system configuration, design, security, backup and recovery.
Conclusion on DBA
The primary DBA benefit is operating under a typical name without a separate legal entity. It can also allow incorporated companies to run another business with a distinct name without incorporating again. However, it does not necessarily protect the business name. Trademark protection is required for that.