What Does DBA Mean?
Doing business as (DBA) is a term that is used in today’s business industry in regards to the liability and formal actions that are taken by a particular company. Doing business as means that the company is working under a fictitious name, concealing its true identity.
To elaborate, the name of the company is legally the name of the proprietor of the business establishment. This means that the business establishment and the individual are the same and hold the same legal responsibilities for the actions that are taken against them. However, in cases of DBA, an individual does not use their own name as the company’s legal name.
For example, there is an individual named James Doe and he is the owner of a laundry service. He wants to call his laundry service “Get’m Clean Laundry”. Legally, the name of his business is his own name, James Doe. If Mr. Doe wants to use a fictitious business name, like Get’m Clean Laundry, he has to register the fictitious name with the property authority.
A doing business as name has to be registered with the proper authority in each state. However, each state has their own specific authority, form, and process that has to be done in order for the registration to be official and the name to be legalized. Some exceptions do apply, like the State of Alabama, which does not require the filing of a fictitious name, though companies can register for a trade name if they wish. Use DBA Forms or Fictitious Name forms for your state to register the DBA name.
However, for owners and proprietors in Arkansas who are looking into a doing business as name, they have to file for a Doing Business As Name Certificate. In Connecticut, a company must register their DBA with the Connecticut Secretary of State. Before advertising and business operations under a business name, it is important to check out the specific procedure of the region and state in order to operate under legal terms.