What Is the Meaning of a DBA?
DBA is an acronym that has more than 50 meanings, with the most common being "doing business as." It is common for individuals and partners to file a DBA form to establish a business name. Without a DBA, you must do business using your birth name. Imagine if there were 10 John Doe stores in your area; you would be unsure who sold what or which store was which in the phone book.
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Doing Business As
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"Doing business as" is a term often used in contracts or formal filings that basically informs individuals, companies and organizations that a person is conducting business under a different name. DBA is common and is the official way to register the business name with a state or county. A DBA is also referred to as an assumed name, a fictitious business name or a trade name.
Importance
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A DBA allows individuals or partners to perform business under a name that differs from their own. This is important so that business bank accounts, credit cards and lines of credit can be opened. Also, business contracts can be prepared on behalf of the company. Establishing a DBA informs people of the kind of business you own and conduct and makes your business name more memorable.
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How to Set Up a DBA
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Research the name you want to do business as. Ensure that your business name is unique to your state, or the name will not be registered. Also make sure that the company name is not copyrighted by another company. If you open a business under a name that someone else ones the rights to, you could face a copyright infringement lawsuit. After you have researched the name, contact your state's Secretary of State Business Division. Every state has a different form, requirements and fee that is required to set up a DBA. The Secretary of State Business Division can advise you which form to fill out and how to proceed with filing.
Warning
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Establishing a DBA does not protect the business owner's or partners' personal assets. To protect your personal assets, such as savings accounts, investments and your home, from business bankruptcy or a business lawsuit, you must incorporate the company. Incorporating a company provides necessary protection of personal assets from business debts and liabilities. For further information on incorporating a company, speak with a business attorney or accountant.
Additional Meanings for DBA
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Other common acronyms for DBA are Daytime Broadcasters Association, diamond blackfan anemia, dynamic bandwidth allocation and database administrator.
Daytime Broadcasters Association members are representatives of radio and television stations and networks who work to maintain a favorable climate for free over-the-air broadcasting.
The Diamond Blackfan Anemia Foundation states that diamond blackfan anemia "is a rare blood disorder, that is characterized by a failure of the bone marrow (the center of the bone where blood cells are made) to produce red blood cells."
Dynamic bandwidth allocation is a technique for allocating, on demand, bandwidth used in a shared telecommunications medium with all users of that bandwidth.
A database administrator works with computers to store, organize and manage computer data and files by using database software programs.
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References
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