What does it mean when it says doing business as?

What is a doing business as example?

For example, business owner John Smith might file the Doing Business As name “Smith Roofing.” Corporations and limited liability companies (LLCs) may register DBA names for specific lines of business. For example, Helen’s Food Service Inc. might register the DBA “Helen’s Catering.”

What is your DBA doing business as name?

DBA means “doing business as.” A DBA is any registered name that a business operates under that isn’t its legal business name. A DBA is sometimes called a trade name, fictitious name, or assumed name. A DBA isn’t a business structure and doesn’t provide any personal asset protection like an LLC or corporation.

How does a DBA work?

Registering for a DBA allows you to transact business under the fictitious name instead of your personal name. Your bank requires a DBA to open a business bank account. Banks often require sole proprietorships and the partners in general partnerships to have a DBA before they can open a business bank account.

Does a DBA need a separate bank account?

If you register your business under different legal names, it is best to also have a different bank account for each business name. … You do not need to have separate bank accounts unless you also have separate DBAs.

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What are the disadvantages of a DBA?

Overall, the disadvantages of a DBA include:

  • As an owner, you are personally liable for all debts accumulated by your business.
  • As an owner, you do not exclusively own rights to your name.

What can you do with a DBA license?

Basically, a doing business as (DBA) license allows you to transact business using a name other than your legal name. Not every state requires a DBA license, but you should be sure to research the rules in your state before attempting to do business with a fictional name.

How much does a DBA cost?

DBA requirements vary by state, county, city and business structure, but in general, registering a DBA comes with paperwork and filing fees anywhere from $10 to $100. You’ll either go to your county clerk’s office to file your paperwork or you’ll do so with your state government.

What does DBA mean legally?

When a business operates using a name that is different from the owner’s name or from the legal name of the partnership, LLC, or corporation, it is said to be “doing business as,” or “DBA,” another name.

Is it better to have a DBA or LLC?

Generally, a DBA is less costly to maintain, but an LLC offers better benefits and protection. Expanding and selling a business, as well as generating funding, is also easier with an LLC. Also, a business owner does not receive personal liability protection from a DBA.

How does a DBA affect taxes?

Lack of tax benefits: A DBA is not a corporation, so merely filing a DBA that is not part of a “corporate umbrella” like an LLC will not give you any special tax benefits. If you are “only” doing business as a DBA, any money your business makes passes through to your individual tax return and is taxed accordingly.

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What is the advantage of a DBA?

The main benefit of filing a DBA registration is it will keep you in compliance with the law. For sole proprietors, a DBA lets them use a typical business name without creating a formal legal entity (i.e. corporation or LLC).