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Is a DBA a Subsidiary?

A DBA is often a subsidiary of a larger corporation. A DBA, or "doing business as," is an assumed name used by a business. A DBA may also be a single entity doing business under a trade new name without changing its articles of incorporation.

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  1. Types

    • A DBA may be filed by a business or sole proprietor looking to do business under a trade name rather than its incorporated business name or personal name. A DBA may also be used for a subsidiary of a larger company.

    Benefits

    • A DBA lets a company operate under a variety of trade names as long as they are registered with the state or county. For example, if Joe's Car Rental opened a Honda dealership, it may want to brand the Honda dealership as Joe's Honda, in which case the legal title of the dealership would be Joe's Car Rental DBA Joe's Honda, but the trade name would simply be Joe's Honda.

    Considerations

    • A DBA used to advertise a subsidiary does not require a new board of directors or updated articles of incorporation for the firm.

    Process

    • A DBA must be filed with local government, normally at the county level. The paperwork requirements will vary by area, but most states require a notarized resolution establishing the trade name.

    Expert Insight

    • Establishing a DBA is an easy and cost-effective way to make sure the preferred trade name for a subsidiary is available for legal use in an area.

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