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by John Desimone
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A fictitious business name or "doing business as," also known as a DBA, gives business owners an inexpensive method of gaining the legal right to operate in a name other than their own. It protects the public, and it extends legal protections and privileges to business owners. States vary on whether the fictitious business filing must be done at the state or county level. And who needs to file a fictitious business name depends on how the individual owner or corporation are naming their business.
Fictitious Names
Most states require a DBA filing if the owner's name doesn't appear in the business name. States vary as to how much of the name is required. In California, Gordon Consulting would not need a DBA if the owner's name was Greg Gordon. The surname in the title is enough. If, however, it was Gordon and Sons Consulting, the name implies additional owners. A DBA would be required so all owners can be quickly identified. In other states, a surname alone in the business title, such as J. Smith Widgets, would not be enough to identify the owner, so a fictitious business name filing would be necessary. If a corporation or LLC wants to operate a subsidiary business under a name that differs from their registered name, they too must file a DBA.
It's not unheard of for two business to operate with the same or similar names. DBA filings allow the government to certify that each name is traceable to a single business owner or corporation. Consumers then can quickly identify and contact owners when they have problems or complaints. Consumers can also sue the correct business owner in the name of the business.
Protects Business Name
It's vital to the success of every business to protect its good name. In most states, a DBA filing affords statewide protection of your name. This means that no one else can operate a business with the exact name. This prevents others from entering your market with the same name and playing off your good reputation to build their own business. However, a state DBA does not protect a business name nationally.
Grants Legal Rights
A DBA grants the business legal recognition to operate under that name. The business can open bank accounts and accept payments in the business name, apply for credit and purchase services and goods all in the name of the business. Additionally, a DBA gives the business the right to enforce contracts signed in the business's name.
Small Business Administration: Register Your Business Name
FindLaw: Fictious Business Names: Do you need one?
FindLaw: What is a Fictitious Business Name
John DeSimone is a published fiction and nonfiction writer. He has contributed to regional newspapers and authored several books. DeSimone also teaches writing at two universities in Southern California.
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