Does a DBA Need to Be on File to Start a Business?
In business, DBA stands for "Doing Business As," and refer to the use of a trade name, like "John's Hardware, "Mary's Cosmetics" or "Capital Books and Music." In some cases, a DBA is also referred to as a fictitious business name, fictitious firm name or assumed name. Depending on the nature of your business, you may need to file for a DBA before you begin your day-to-day operations.
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Businesses Requiring a DBA
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While laws vary slightly in different states and counties, a DBA is generally required for all businesses operating under a trade name. For instance, if you want to open a used book store called "Main Street Books," you will first need to contact your county clerk or secretary of state (depending on your state) and file for a DBA certificate under the name "Main Street Books."
Businesses Not Requiring a DBA
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If you wish to open a business using your full legal name, you will not need to file for a DBA certificate. Your full name is already your legal property, therefore you need not file for the right to conduct business under the name "Mary Collins Consulting," if your legal name is in fact Mary Collins. If you plan to start a corporation, you can also bypass the DBA registration process, as corporate filing involves a separate, official name registration process.
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Business-Related Activities
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If you plan to open a business checking account but do not plan to incorporate, you will first need to obtain a legal DBA certificate. A fictitious business name demonstrates to banks that you operate a legitimate business and can legally accept and disburse funds under your selected trade name. Furthermore, some cities and counties will require you to obtain a DBA before filing for local business licenses and permits, including resale licenses, general business licenses, wholesale certificates and other trade licenses.
Exceptions
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Alabama, Arizona, Kansas, Mississippi and New Mexico do not require the registration of a DBA. For a complete list of state-by-state DBA laws and requirements, visit the Business Name Registration page at the federal government's Business website (see Resource).
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