If you’re an immigrant to the US looking to start your own business, you may have come across the term DBA, which stands for Doing Business As. After legally registering a business, you may want to register a DBA—this article will cover what exactly this entails and the benefits of having a DBA in the US.
At Remitly, we understand the challenges of starting and running a business in a new country. That’s why we support immigrants not only in sending money internationally, but in making their ventures a success.
What is a DBA?
A DBA, sometimes called a trade name, allows your business to operate under a name different from the legally registered one, often for branding and marketing purposes.
What is the difference between a DBA and a legal name?
Your business’s legal entity name is the name under which it’s officially registered with the relevant authorities. You use this name on official paperwork and documents, such as tax records.
Suppose you’re opening a food shop and you register it under the legal name Mouthwatering Exotic Dishes. However, your marketing team may need an easier-to-remember name for marketing and branding purposes. So, you can do business or trade as MED Burgers if burgers are your primary product.
This means that your invoices, tax receipts, contracts, and other important documents will read Mouthwatering Exotic Dishes, while your shop will be branded MED Burgers—the name your customers will know. MED Burgers is your DBA.
Reasons to use a DBA
The DBA offers several benefits to companies:
- Great branding and marketing: A DBA allows you to create catchy, easy-to-remember brand names that your marketing team can use to create successful campaigns to increase traffic, sales, and customers.
- Enhancing business identity: You’ll increase brand awareness and recognition.
- Business flexibility and cost-effective expansion: You don’t have to register a new legal name to open another business. Under the same legal name, you can expand and operate enterprises in different US cities and sectors. For example, you can have MED Burgers in Chicago, Palm Bistro in Texas, Bespoke Burgers in Nashville, and Joe’s Table in New York, all operating under the legal company name Mouthwatering Exotic Dishes. There’s no limit to the number of DBAs you can have.
- Privacy: You don’t have to register a business in the US if you’re operating under your own name. Unfortunately, this comes with a privacy cost. A DBA helps hide your personal information.
- Accessing banking services: Different bank accounts for your different trade names are essential for proper accounting. Many US banks only allow you to open a business bank account under a name different from the legal business name if you can produce the DBA certificate or registration paperwork.
- Compliance with legal requirements: In most states, you’re required to register with appropriate authorities before operating under a name different from your legal name.
How to register a DBA
Register a DBA by following these simple steps:
- Look up the local regulations in the city where you wish to register. In some areas, you’ll register at the county level, while state registration works in others. Some require registration at both levels.
- Ensure your DBA is unique. Check with the state or county registry to ensure no other business uses your chosen DBA.
- Complete the registration by filling out an online form or a physical one at the registry office. Required information includes the business owner’s name, address, and DBA name.
- Pay the registration fees.
- Publish a public notice if required.
- Submit the completed application.
- Receive the confirmation of registration or DBA certificate once the relevant authorities approve your application.
Most DBAs expire, so you’ll renew them periodically, depending on where you operate from. Most states require DBA renewal every five years, but some, like Texas, offer up to ten years of validity. Always check your approval conditions for the renewal requirements and specifics, because your trade name will cease to exist once the DBA expires. Consequently, someone else may register your DBA as theirs and reap from years of your branding and marketing efforts.
Filing requirements and costs
Generally, filing a DBA in the US costs between $10 USD and $100 USD. Some cities and states have extra requirements that increase DBA registration costs.
A few variations from the standard requirements that increase application costs include:
- The State of Georgia, for example, requires a public notice to be placed in a newspaper circulating in the county you wish to operate from within the state. This is done after paying DBA registration fees.
- Some states offer expedited services to speed up your application process. Washington charges $100 USD, while Utah charges $75 USD for this optional add-on.
- In California, each county sets its own price, so you’ll need to contact the local county clerk’s office for the latest prices. Texas, on the other hand, sets a standard fee of $25 USD.
Where to file your DBA in the US
The state decides where you file your DBA, depending on what type of business you operate. In most states, you’ll file a DBA with the county or city government, but the requirements vary in other states. Always check with the local authority for clarification and guidance.
| State | Where to file your DBA |
| New York | County clerk for sole proprietorships and general partnerships
Corporations, LLCs, and LLPs file at the New York Department of State |
| Texas | Secretary of State |
| Georgia | County clerk of the superior court |
| California | County clerk office or county recorder |
| Utah | State of Utah, Department of Commerce |
| Florida | Department of State |
| Oregon | Secretary of State, corporate division |
| Illinois | County clerk for sole proprietorship, general partnership, and professional corporation
Secretary of state for LLC or corporation |
The difference between a DBA and an LLC
In the US, you can choose between several structures to legally register your business:
- Sole proprietorship: This is the default structure—a business owned and run by one person, without a legal separation between the owner and the business. On the positive side, this type of company is very simple to form, but there are drawbacks. You will be responsible for the business’s liabilities, and your personal assets will be at risk if your business incurs debt or faces a lawsuit.
- Partnership: Any business arrangement between two or more partners who share the profits and losses is considered a partnership. This can be further divided into limited partnerships (LP)—where one partner has unlimited liability and others have limited—and limited liability partnerships (LLP) —where all partners have limited liability. Limited liability means that their personal assets are protected from the company’s operations.
- Limited Liability Company (LLC): This business structure is more formal than a sole proprietorship. It offers limited liability, protecting your personal assets from debt or lawsuits against the company.
- Corporation: A corporation is the most formally structured and complex type of business. The law separates the shareholders from the owners, offering limited liability. You can register either as a C Corporation, issuing stock and paying corporate taxes, or as an S Corporation, passing your losses and profits to shareholders.
Registering a DBA is not the same as registering your business. You must legally register a business first, then register for a DBA. If you register a DBA before registering it as a legal entity, the government will consider it a sole proprietorship.
This means that although you’ll legally conduct businesses under your trade name, a DBA won’t protect you from liability unless you register as an LLC or corporation first.
To help you decide, consider these facts about LLCs and sole proprietorships:
| Sole proprietorship | Limited liability company (LLC) |
| You’re liable for all business risks, debts, and obligations. | Your personal assets are protected because you’re legally separated from the business.
Only the amount you have invested is at risk. |
| You’ll file income taxes on your personal tax return, even if you’re a single-member LLC (SMLLC). | There are tax benefits, such as deducting business expenses. |
| It relies on the owner’s finances to raise cash. | You may attract more investment because LLCs are perceived as more credible than sole proprietorships. |
| The business ends when the owner dies. | Business continuity is guaranteed because the structure doesn’t rely on one person. |
| There are fewer requirements to open a bank account. | Opening a bank account is more complex because of the documentation required, such as a Certificate of Formation, Employer Identification Number (EIN), Social Security Number, proof of address, and operating agreement. |
| It’s cheaper to set up. | There is more paperwork and fees involved. |
Whatever your company structure, a DBA offers a host of benefits beyond simply registering a name for your company. It gives you greater flexibility and control over your business’s public image and how your company expands over time.
FAQs
What does DBA stand for?
DBA stands for Doing Business As.
Is a DBA the same as an EIN?
No. An EIN is an Employer Identification Number, a federal tax ID that the Internal Revenue Service (IRS) uses to identify the tax accounts of employers.
How does a DBA affect a business operation?
A DBA offers an easy-to-remember trade name that makes it easy to build your brand and market it to customers.
What’s the purpose of having a DBA?
A DBA simplifies business expansion by allowing you to operate different enterprises linked to the same legal name.
What’s the difference between an LLC and a DBA?
An LLC is a type of legal business structure while a DBA is a trade name, different from the legally registered one, used for branding and marketing purposes.
What’s an example of a DBA?
You may legally register a business as Mouthwatering Exotic Dishes. This means your invoices, tax receipts, contracts, and other important documents will read “Mouthwatering Exotic Dishes.”
However, you can register several DBAs, such as MED Burgers, Palm Bistro, Bespoke Burgers, and Joe’s Table, running different shops in different US cities, and operating with separate bank accounts and accounting.
Does a DBA need a separate bank account?
Not necessarily. However, if you run several enterprises, it may help simplify the accounting process.