Definition of "Doing Business As"
"Doing business as" is frequently abbreviated as DBA or D/B/A on legal documents. It refers to alternate names under which companies operate professionally and are neither the personal name of the owner of a business nor the legal name of a corporation.
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Purpose
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Assumed business names allow sole proprietors to separate their personal name from their business identity. Choosing a DBA identity also allows sole proprietors to open bank accounts, use the assumed name in contracts and advertise services using that name without having to pay the fees associated with incorporation. Franchises also frequently do business under assumed company names so that the parent company does not incur the cost of registering the local business name of each branch.
Features
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Some states require businesses doing business under an assumed name to file a statement disclosing their actual name and the name under which they are doing business. These statements list the name of the proprietor or parent company, the fictitious name, employer identification number and contact information for the business.
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Publication
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In some states, these statements are published in a public forum such as a newspaper. After publication, the business may need to get an affidavit from the newspaper stating the dates the announcement published. This affidavit, along with a copy of the ad, must be filed with the court or state agency though which the statement was filed.
Reason for Registration
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These formal statements are a way to protect customers from illegitimate business practices. They hinder companies from misrepresenting the nature of their company or their underlying business interests. They also provide a means for customers to trace the operator of a business to pursue legal action if they are victims of fraud.
Copyrights and Trademarks
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Registering a trade name does not give the registrant exclusive use of the name. Often, state agencies will approve an assumed business name even if other businesses are using this same name. It does not grant any copyright or trademark rights.
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Resources
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