The acronym DBA stands for "doing business as." A DBA is any registered name that a company uses instead of its legal business name. A DBA is sometimes known as a trade name, fictitious name, or assumed identity.
A DBA isn't a company structure, so it doesn't give the same asset protection as an LLC or corporate read more about what is an LLC.
Many individuals believe that a DBA is the same as a business structure, which it is not. They think that creating a DBA implies establishing a legal business structure with liability security.
When an entrepreneur creates a firm and just registers a DBA name, they are really forming a sole proprietorship with the same name.
The DBA name protects the company from lawsuits and creditors, but the personal assets of the business owner remain fully exposed.
A single proprietor or partnership must operate under their personal name(s) unless they have a DBA. A sole proprietorship's corporate name is its owner's personal name by default.
With a DBA, "John Smith" can advertise himself as "ABCD Bakery" under an assumed name.
The DBA name is not required to utilize a brand name, bank in the LLC name, or establish privacy in a formal business structure such as an LLC or corporation. Those features are built into these organizations from the start.
The most significant advantage is that file DBAs enable businesses to establish numerous brands (company names) or lines of business under the same LLC or corporation. They can also be used to rebrand a Limited Liability Company or company rather than changing the official legal business name.
