Manage Your Business

Doing Business As (DBA)

DBA names are referred to as trade names, fictitious names, or assumed names in some states.

DBA names can be beneficial for sole proprietorships, they’re also helpful for other types of companies, like LLCs and corporations. Here are a couple of reasons a company might want to obtain a DBA name:

• Registering a domain. Sometimes, the domain you want is unavailable, and you end up marketing your services under a separate name. For example, the owner of “Sharpest Tools, LLC” decides to build a website but can’t secure their LLC name as the domain. Instead, they register the domain “LocalTools.com.” To sell under this name, they obtain a DBA name for “Local Tools.”
• Branching out into new services. You might form a company for one service or product only to branch out in another direction down the road. For instance, if your company, “Luna’s Locks, Co.” sells hair care products and branches out into supplements, you might not want to sell your vitamin and supplement line under the same name. Instead of creating a new company, you can secure a DBA name to sell these products under a separate name.

Once you’ve decided you’d like to obtain a DBA name, you’ll need to register for one. Registering a DBA name is typically a straightforward process, but the steps can vary from state to state.

Some Advantages of Having a DBA

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More Flexibility
With a DBA name, you have more flexibility to expand and grow your business. For instance, if your company is named “Pearson Catering,” you can easily expand into new audiences using a DBA name.
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Better Security
A DBA name is particularly helpful to businesses that are named after the owner. Using a DBA name helps buyers better understand the service or product they’re purchasing, but it also keeps your private information safer.
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Enhanced Branding
You can target specific audiences with the use of DBA names. For instance, if you sell activewear, you might opt to set up DBA names for dancewear, gymnastics apparel, basic gym wear, kids activewear, athleisure, and other niche markets to further enhance your brand target specific groups of buyers.

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