How to Open a DBA Account

Opening a DBA (Doing Business As) account isn't very hard and can be done by almost anyone. You'll learn step by step how to set up and open a DBA account.

Things You'll Need

• Business name
• Social security number
• Local bank

Instructions

1. It is good to have a DBA if you would like to branch into other ventures after you've already got a main LLC or Inc. When you are "DBA," you are able to file under your main LLC but operate under a complete different name. That way you don't have to have two seperate businesses. Your DBA can be attached to your social security number, where as your LLC will be attached to your EIN number.

2. Come up with a business name. You will need to register this name as a "fictitious name" on your state's business site (i.e., Sunbiz.org for Florida). You can search for "register my business in the state of blank" and your state's business site will be listed if you don't already know it or you can have Legal Zoom register it for you. You have to register the name and print out the confirmation or the bank won't let you open your account. If you don't register the name then it isn't considered legal, so make sure you register.

3. Print out the confirmation page and take it to the bank with your social security number and two forms of ID and they will set up a DBA account. It is important to have a DBA account so the money is seperate from your personal and or other business monies. This "Doing Business As" account will allow you to do all the same functions as a regular business account, i.e., write checks,debit/credit card etc. You can have a DBA account without having a LLC account, but you will need to file all of the earnings on your taxes so you don't get in trouble with the IRS.

4. File all of your info from the bank and make sure you register every 5 years with your state to keep your DBA active. The DBA name will only last for 5 years; at that point it is no longer legal and it becomes null and void unless you register it again. It would be just like registering your tag or license. It will expire and you can either let it go or decide to keep it. If you are caught doing business under that name and it's not registered, you will be shut down and most likely put in jail. The state will send you a letter in the mail when it is almost time to register again.

Tips & Warnings

• Think of a creative business name and make sure you don't choose the same name as another business.

• Be sure to register every five years so your DBA name stays active.

• Don't try to go to the bank without a confirmation page that you've registered your DBA.

Resources

• Read this Article in Spanish
• Bankers Online