The DBA Deets: How to Legally Give Your Business a Pen Name

Hi there, dreamers & dynamos,

Welcome to DBAs 101.

Why a DBA Might Be Just the Thing for Your Biz

Hey, business legal buddies! Gather around and grab your favorite brew, because today we're about to embark on a wild ride filled with mysterious acronyms, alternate identities, and shield-worthy protection. Excited? So are we. 

So, let's talk DBAs! And no, we don't mean Designated Beverage Analysts searching for the perfect coffee, although that sounds like a dream job, right?

We're talking about "Doing Business As", an awesome strategy that helps you give your business a pen name, à la "nom de plume" if you're into that French flair. 

All the DBA Deets

Some of you might know the DBA by another name like "Fictitious Name," "Trade Name," or even "Assumed Name" depending on where life has planted you. But no matter what you call it, a DBA can be pure magic for your business! And we're here to reveal all its glorious secrets.

One thing to get clear on: a DBA is not a Trademark. It does not give you legal protection for your business name.

So, What's the DBA Hype All About? 

So, there's this burning question about DBAs that keep people up at night, including me (truth bomb) - why the heck do we even need 'em? Well, buckle up, because we're in for a ride of wisdom and discovery together!

Simply put, a DBA gives you the superpower to operate your business under another name without changing your registered business entity or if you don't have a registered entity (To that, I have to ask, why not? Seriously, check out all the benefits in this article). It's like your business got an extreme makeover and ended up with a sleek alter ego that dazzles your customers. Think Batman, only… more into sales and marketing. 

And just like our metaphorical superhero, using a DBA offers numerous advantages that you might want to consider… or, you know, register right now.

The DBA-licious Advantages 

Got a new fantastic venture?

If you're branching out into a new deck of products or services, a DBA can help you work that new angle while keeping your original biz entity. That's right! Multitasking like a boss, our dear DBA can help you run multiple businesses under one entity and minimize customer confusion because of the separate business names. 

Branding on fleek!

For all you creatives, having a DBA gives you carte blanche to let your branding ideas run wild and create a name that pop, like powdery toast in a toaster. Get creative! Think of a fun name, an illustrative name, an evocative, a name with all the alliteration.

Bank account superstar!

With a registered DBA and an EIN or tax ID number, you can open bank accounts and handle payments using your fancy-schmancy business name. Hello, legitimate entrepreneur! 

Money Honey

Keeping in the banking catagory. If one of your fabulous clients writes a check to your business and the name on the check doesn't match the name on the bank account, that's a major problem. You will not be able to cash that check.

But, long story short, if your name or your registered business entity's name is different from the name of your business you need a DBA.

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The DBA and the Sole Proprietorship

It's particularly helpful for our sole proprietor pals who wanna create some 𝒔𝒑𝒂𝒄𝒆 between their legal name and their business alter ego. Remember, if you haven't registered as a legal business entity, you are by default operating as a sole proprietorship so this section applies to you, my friend.

But wait! Before you jump on that DBA bandwagon, we gotta talk paperwork.  I've seen so many small biz owners marching under their fab DBA without getting it officially registered with their state or county. Major face-palm moment, am I right?  So, remember: if you're using a business name that's different from your legal name, you must file that sweet DBA in your area. 

Sidebar: Some states may require to register a DBA as an additional step in your LLC filing process. This varies state to state. And, because I'm sure you're wondering, you are NOT limited to one DBA per person or per business entity. 

Let's Make a DBA Happen STAT!

Convinced? Fantastic! So, how do you actually register a DBA? Well, my eager beavers, buckle up for some step-by-step magic!

The DBA Registration Roadmap 

Don't sweat this, it's an easy-peasy process.

DBA Research:

Before you set your heart on that perfect name, make sure it's not taken! Do a little detective work, snoop around, and make sure your alter ego remains unique, just like you! Although some states will allow multiple businesses to use the same DBA it's important to do your research. A great place to start is your state's Secretary of State website. I have the links for every state in this article.

Applications, applications:

Once you and your name are an item, it's time to make it official. Fill out the necessary forms, file them with the right government office in your state - this usually the Secretary of State but it could be your local county clerk, and pay the required fee - usually $10-$100. Remember, if you are an LLC or non-profit, you want the DBA associated with your business entity. If you're a sole proprietorship, you want it associated with your legal name.

Pro tip: Some states might ask you to announce your DBA in a local newspaper. 

Welcome home, DBA!

And voilà, you're the proud owner of a registered DBA! Just remember, it's essential to keep your registration up-to-date and renew it when required. Keep in mind, that the law looks at a DBA as a nickname so use your legal name (for sole proprietorships) or you registered business name for anything official like taxes or contracts but also for things like the copyright notice in the footer of your website.

Good to know: DBAs are a matter of public record because it is important for the public to know who they are doing business with. So people will be able to look up and learn that you, or your business entity, are the owners of the DBA. 

Now that we understand the powerful world of DBAs, there's one crucial detail we need to uncover: DBA vs. LLC – what's the difference?

The DBA vs. LLC Faceoff 

Even though the DBA is a rockstar, don't mistake it for an LLC (Limited Liability Company). While a DBA allows you to operate your business under a fabulous new name, it doesn't provide liability protection or other advantages that biz entities like LLCs can offer. If you want an asset protection or tax advantages, you need to check out business entities.

Think of it this way: one's your fabulous pen name, and the other is your behind-the-scenes bodyguard. A great duo, but totally different functions – like Bert and Ernie on Sesame Street. 

For example, if I were a more creative person, I could have had my LLC be Kerry Carroll LLC and then gotten a DBA to name my website "Kerry's Contracts for Creatives and Coaches" or something like that.

Get the Best of Both Worlds

Remember, even if you're loving your DBA, consider registering as an LLC or another business entity for protection and legal peace of mind. And don't be shy! Even if you have a registered LLC, you can still use a DBA for other business ventures or if your registered name is a little too formal (hey, not everyone wants to name their company Jane Doe LLC - yup, I did that.). Together, they make a PB&J-level team that commands the business world! 

So, there you have it, folks – the lowdown on DBAs! 

THIS ARTICLE IS NOT A SUBSTITUTE FOR LEGAL ADVICE AND IS OFFERED FOR INFORMATIONAL PURPOSES ONLY. EVERY SITUATION IS UNIQUE AND YOU SHOULD CONSULT A LOCAL ATTORNEY FOR ADVICE ON YOUR PARTICULAR CIRCUMSTANCES.