Understanding DBA for Sole Proprietors
A sole proprietor uses a DBA, or "doing business as," to register a fictitious business name. To establish a DBA, file with the state. A DBA allows a sole proprietor to open a business bank account, apply for licenses and build business credit. In contracts, indicate the company’s legal name and DBA. The DBA has no legal significance.
Legal Implications of a DBA in Contracts
Companies use DBAs but not as substitutes for legal names in contracts. Write the full name then use the DBA. The DBA alone has no standing. An individual, corporation, LLC or partnership enters contracts.
To file a DBA, complete forms and file with the county clerk or state agency. Research regulations on DBAs where doing business. DBAs don’t register a company as a legal entity.
General partners or agents can sign for a partnership. Owners sign for a sole proprietorship. A DBA is a trade name, registered where business is done.
Use full legal business name when signing contracts, not your personal name. Can list DBA but identify the legal entity. State both names to be clear.
Registering and Using a DBA
Sole proprietors can establish corporate entities and DBAs for each business line. Banks need DBAs to open business accounts. Protect the name by registering the DBA.
Include your real name and DBA when signing legal documents. Requirements for DBAs vary but involve paperwork and fees.
Example and Signing with a DBA
Filing for a DBA allows conducting business under a name other than your own. Your DBA differs from your name as the business owner or your business’s legal, registered name.
Create a DBA signature section at the bottom of corporate letters. Sign your name in ink. Indicate the corporation name and DBA under your title using "trading as".
A DBA gives a sole proprietor freedom to use a business name that markets products or services and creates a professional identity.