Filing a DBA also allows business owners to legally accept payments, open bank accounts, and advertise under their chosen fictitious names. Having an assumed name can also avoid fraud since doing business using a name other than your legal name without proper documents is against the law.

So why would a business entity want to file a fictitious name?
There are several reasons for this. First, when you are a sole proprietor, you have the option to use a business name instead of your own name. You also do not have to create a formal entity such as a corporation, partnership or even LLC. Legal entities on the other hand can do multiple businesses without having several business entities.

DBA statements are usually used in franchising businesses. Here, the franchisee conduct business using the franchise’ brand name but at the same time, it also has its own legal name.

Filing a DBA online is not as complicated as it seems. In most cases, all you need to do is to sit in front of your computer, answer the questionnaire and wait for it to be reviewed and processed. However, in some states especially in California and other areas, business owners are required to publish a notice of their intent to operate in a fictitious name in newspapers at a certain time period. Business owners are also compelled to record the name in the Recorder of deeds. This aims to protect people from fraud and other legal problems that might arise in the future.

Filing a DBA and the proper use of assumed names can be a powerful marketing and branding tool for businesses. It is important that business owners understand its purpose in order to maximize its uses.

By: Ira Park