Photo by: PublicDomainPictures courtesy of Pixabay.com

Getting your business off the ground is no easy feat. Between developing your product or service, finding customers, and handling the books, you’ve got your hands full! Naming your business is another challenge every founder faces — and it’s one you want to get right.

When starting a business, you’ll likely need to choose an official legal structure like an LLC (limited liability company) or sole proprietorship, and a range of rules determine the names you can choose for each type of business. These rules can make it tough to pick a memorable brand name that is ideal for marketing purposes throughout the life of your business. You know what they say – you never get a second chance to make a first impression!

Fortunately, there’s a workaround that frees your business name choices from complicated legal rules. You can create a legal name at minimal cost and without creating a new business entity. All you need do is register an assumed name or DBA “Doing Business As” with your state.

Reading on, you’ll find details on what DBA is, how to set up a DBA, when to use an assumed name, and so much more!

What is an Assumed Name?

An assumed name is a secondary name for a business venture operating under any name other than its legal name. These are also known as DBAs, standing for Doing Business As (ie, the name you’re doing business as) or trade names. Different states will use different terminology, but assumed name, DBA, and trade name all mean the same thing.

Assumed names allow corporations to operate multiple businesses without creating a new legal corporation for each one. This saves business operators time and money and means they can create multiple tailored brands for every business.

Examples of DBAs or Assumed Names

Many companies choose DBAs to distinguish their brands, operate multiple businesses or even capture another market under a new domain name.

A catering company called “Johnson Soup Company” may register “Soup’s On Catering” as a DBA to emphasize its food offering.

An equipment repair outfit named Ace Repair Experts may use “The Furniture Doctors” to signal their furniture focus. Meanwhile, a tavern called Smith & Co Tavern may brand its taproom side as “Bubbly Brews Taproom.”

Other examples include an organic farm called Wilson Agricultural LLC, going by “Thyme for Herbs Organic Farm,” and a sneaker shop called Walker Street Traders using “Fast Feet Sneaker Shop.” A daycare incorporated as Armstrong Daycare Inc. could market as “Giggles Childcare Center.”

These DBA names help boost recognition for specific services while still maintaining transparency about the parent company name.

Assumed Name/DBA vs. Legal Business Name

An assumed name, or DBA, is an additional trading name that allows business owners to establish a separate or retooled brand identity, target specific markets, or run multiple businesses with different names under an umbrella entity.

A business’s legal name, on the other hand, is the registered name of the company, officially recognized by government agencies and used on legal documents such as articles of incorporation or registration. When government agencies communicate or take legal action regarding the business, they will use this registered legal name.

Using an assumed name does not absolve a business from legal responsibilities or disputes. The legal entity is responsible for all business actions and obligations, regardless of any assumed names used. Hence, business owners must maintain transparency and compliance with regulatory requirements when using assumed names.

When Should You File an Assumed Name or DBA?

Whether you’ve settled on the perfect name for your new business or you’re re-launching a brand under a stronger DBA, you need to plan ahead to get an assumed name. But when exactly should you file that DBA? While requirements vary by state, it’s best to file DBA forms at least a month before you plan to use an assumed name different from your legal name.

Filing an assumed name with the state ties your trade name to your LLC entity legally, too. That way, customers know exactly where to direct their queries if any issues arise down the line.

Plus, some states require filing a DBA to obtain basic permits and licenses. So, getting that paperwork in early can help smooth the process of setting up shop.

Registering an Assumed Name/DBA

Registering an assumed name/DBA is pretty straightforward, but the process varies from state to state. Check with the Department of Business Services, secretary of state or county clerk for the exact process. Usually, registration happens at the county level, where forms and fees may vary.

Once you know who to file with, it’s time to choose your business name. This is an important moment that determines the future of your brand, so don’t rush it.

• Define your unique value proposition and brand identity.
• Brainstorm with our AI-powered business name suggestions generator.
• Build a shortlist of preferred names.
• Consider audience testing to validate your name choice.
• Search the local database to confirm which chosen name is available.
• Don’t risk a future trademark dispute. Ensure you’re the only business of your type trading on that name.

With your name chosen, it’s simply a matter of paperwork. Get the form from the appropriate agency, fill it in, file it, and pay applicable filing fees, which usually range from $10 to $150. In New York, for example, there’s a $25 filing fee while in Illinois routine processing is $150.

After submitting your application, it takes 1 to 4 weeks to process, so make sure to file at least a month before launching your business to avoid delays. You’ll receive your certificate of assumed name in the mail when approved.

Changing or Canceling an Assumed Name/DBA

To cancel or modify an assumed name or DBA, file the cancellation or change form with the local secretary of state’s office or county clerk. If you only want to change an assumed name,  you can file for a new DBA simultaneously with the government agency you used to register your initial DBA name.

In addition, some states mandate publishing the abandoned assumed name or DBA in an approved local newspaper or periodical as provided in publication guidelines.

How Copyright Works For DBAs or Assumed Names

You might think that registering a DBA grants sole use of that name, but that’s not the case. DBA names don’t give you the exclusive right to claim your business’s name. If you want to have exclusive rights to your business name — especially if you have long-term branding plans, which is great — then you should trademark.

A trademark name distinguishes your company from others with similar names or goals. In essence, DBAs and trademarks can work hand in hand. The DBA lets you operate with that name legally, while the trademark solidifies that it’s your name alone.

To own the rights to your business name, file a trademark registration with the United States Patent and Trademark Office.

If someone is already using the name you want for your DBA, you may still be able to use it. If you’re in a different class of business operating on the other side of the country, there should be no overlap in how you do business and you can claim the assumed name as your own. For example, the protracted trademark dispute between Apple Inc. and Apple Corp. (the Beatle’s record label) was briefly ended when Apple Inc. agreed not to enter the music industry and only renewed on the launch of iTunes.

Meanwhile, should you wish to open a yoga studio named Apple Yoga, this would likely be approved as an assumed name so long as you demonstrated no intention of leveraging Apple Inc.’s business for your gain.

But ideally, a strong business name should be uniquely yours. Overlapping with a famous brand will only confuse your customers — and it might mean your Yin Spotify playlists put you in danger of a tangled legal battle. Use our free Trademark Check service to future-proof your business names. 

Is a DBA or Assumed Name Necessary? 

An assumed name is not necessary as you can operate your business under its legal name. But assumed names are helpful for corporations looking to start further businesses with new names, or if you’re renaming your operations without changing your legal business name.

A DBA can play a crucial role in your business operations. It’s an easy way to operate one arm of your business under a different name or domain, and a strong DBA will boost your brand. But before you decide on a DBA, think about what name will resonate best with customers and differentiate you from competitors. 

Also, consider any tax implications and check if the name is already taken in your state to avoid trademark infringement. Most importantly, pick a name that feels authentic to you and your business vision. 

Once you’ve declared your official DBA, the next step is finding a strong brandable domain that matches it

Start the search on the Atom Marketplace. Our curated selection of premium domains is concocted by naming experts and validated by our team of domain experts. Find the perfect domain to support your business goals and branding as you launch your enterprise.

FAQs

What Does a DBA do for a Business?

Also known as an assumed name and a trade name, a DBA, or “Doing Business As” name, allows a business to operate and be identified by a name other than its legally registered name. Registering a DBA helps build brand recognition, can make a company name easier to remember, and protects the business in case the legal name changes in the future.

How Do I Register an Assumed Name?

To register a DBA name, you’ll need to file paperwork with your state or local county clerk’s office. Requirements vary by location but typically involve filling out a simple registration form, paying a small fee (typically under $100), and, in some cases, publishing your DBA name in a local newspaper.

Can a Company Have More Than One DBA?

Yes, it is legal for a company to have multiple DBA or assumed names as long as each one is properly registered. This is common for businesses with multiple locations or service lines. The company’s legal registered name remains the same, while multiple assumed names can exist. Proper registration of all DBAs is also important for legal and tax compliance purposes.