Legal Definitions - doing business as (DBA)

Doing Business As (DBA), often referred to as a "fictitious name," "trade name," or "assumed name," is a legal registration that allows a business to operate and present itself to the public under a name different from its official, legal name.

The legal name of a business depends on its structure:

• For a sole proprietorship, the legal name is typically the owner's full name.
• For a partnership, it's the names of the partners.
• For a limited liability company (LLC) or a corporation, it's the name registered with the state (e.g., "Acme Corporation LLC" or "Global Enterprises Inc.").

A DBA allows a business to use a more marketable or descriptive name without having to form a new legal entity. This registration helps ensure transparency for consumers and creditors, as it publicly links the assumed business name to the responsible legal entity or individual.

Here are a few examples illustrating how Doing Business As (DBA) works:

• Example 1: Sole Proprietorship

  Maria Rodriguez is a freelance photographer. Her legal business name, as a sole proprietor, is simply "Maria Rodriguez." However, she wants to market her services under a more creative and memorable brand. She registers a DBA for "Capturing Moments Photography."

  Explanation: By filing a DBA, Maria can open a business bank account, advertise, and sign contracts using the name "Capturing Moments Photography," even though legally, the business is still owned and operated by Maria Rodriguez herself. This allows her to build a distinct brand identity separate from her personal name.

• Example 2: Corporation with a New Product Line

  Apex Innovations Inc. is a technology company legally registered in Delaware. They decide to launch a new line of eco-friendly smart home devices. To create a distinct brand identity for this new product line, they want to operate it under a different name, "Green Living Solutions."

  Explanation: Instead of forming a completely new subsidiary corporation, Apex Innovations Inc. registers "Green Living Solutions" as a DBA. This enables them to market, sell, and manage the smart home device division under its own brand name while remaining legally part of and accountable to the parent company, Apex Innovations Inc.

• Example 3: Partnership Operating a Retail Store

  David Lee and Sarah Kim form a legal partnership to open a bookstore. Their legal business name might be "Lee & Kim Partners." However, they want their store to have a more inviting and recognizable name for customers: "The Cozy Corner Bookstore."

  Explanation: David and Sarah register "The Cozy Corner Bookstore" as a DBA. This allows them to operate their physical store, display signage, process transactions, and engage with the public under this chosen trade name, while the underlying legal entity responsible for the business remains the "Lee & Kim Partners" partnership.