What Is a DBA and How Can It Help Your Business?

When you are establishing and creating a new business in California, you have several different options to choose from, including sole proprietorship, partnership, limited liability corporation (LLC), and different types of corporations. Another option, if you want to do business using a different name, is to create a DBA.

• TIP: Prior to starting a new business or choosing a DBA name, it is always a good idea to perform California seller’s permit verification. Doing so will allow you to verify whether the name you are selecting is already in use by another business.
  

What Does DBA Mean?

DBA means you are “Doing Business As” another name different from the original name of your business. DBAs are a good idea when you do not want to associate your full name or other such details with your business. For example, Joe Smith wants to open a bakery and wants to name it Sweet Treats.

Without a DBA, Joe would need to name his new store Joe Smith’s Sweet Treats. In order to drop his name off the business, the easiest way to do this is for Joe to create a DBA.

DBA Examples of Businesses That Need a DBA

Just about any type of business can create a DBA for various reasons, including:

• Brick and Mortar: With a DBA, you essentially can name your business just about anything relevant for your industry or market segment.
• Online Businesses: You can set up multiple online business sites with different names by using DBAs.
• Service Businesses: Businesses that offer a wide range of services can use a DBA for each specific service, all under the same primary business name.
  
• Consumer Product Businesses: Businesses that sell a range of consumer products can use DBAs to identify specific brands.
  

Benefits of Having a DBA

There are several benefits of having a DBA for your primary business when you want to operate using a different name, as follows:

• Banking is easier with a DBA. You can open a business account to accept payments, process payroll, and perform other banking tasks for your business without having to file for an LLC or corporation status.
• DBAs make your business compliant. You can legally use a business name without having to register it as an LLC or a corporation.
• DBAs make expanding your business easier. If you want to branch off into a new product line or service line or take a brick and mortar store online, you can use DBAs to operate different “sub-businesses” of the main business.
  
• You can use a DBA to identify your brands. Using a DBA rather than your business name allows you to convey to people your brand and identity much easier, than say, Joe Smith LLC.
  

How to Obtain a DBA

In order to obtain a DBA, the first thing you need to do is make sure you have obtained your California seller’s permit and business license. Once you have those, you can file for a DBA, either through your county or state government office, and pay a registration fee.

While it is not mandatory for a business to have a DBA, it does make operating a business much easier when you want to use a name different from your primary business name. For assistance in obtaining your California’s seller’s permit and other business filings, FastFilings.com can help. Just fill out our online form to get started or contact us at (415) 857-3301 today!