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What is DBA and Why It Matters

With today’s competitive business environment, doing business is more than just providing quality products. You need to master the techniques of setting up your company and the type of structure that suits your business. Your business success journey should start by registering your DBA (Do As Is). Check California DBA to get help on how to file your fictitious business.

Let’s look at what a DBA is and why it matters

DBA means doing business as.  The term is considered to be a fictional business name but does not replace your company’s legal name. It’s the best alternative if you don’t wish to start a separate LLC or if you are planning to open another branch within the existing business structure. Besides, you can create a DBA if you don’t want to register a business under your own name.

Essentially, a DBA is suitable for young start-ups, old, small, and large businesses. Understanding what DBA is all about creating more opportunities and enables you to grow your business. However, a DBA isn’t a business structure or a legal entity like a corporation or an LLC. As a result, it doesn’t offer personal asset protection or liability. But you can use it to open a company bank account

Why Should You Care About a DBA?

Versatility- If you have opened another branch, such as a corporation or LLC, using a fictitious name is a better option because you won’t have to create new entities. Your first business will serve as the anchor for your other new companies, thereby enhancing their growth.

Flexibility– State law dictates that businesses operate under a unique name to avoid confusion. Your company may be unavailable in states you wish to expand the business. You’ll avoid such a problem by registering the business using a fictitious name. This way, you can expand your business into markets where the legal name is already thriving.

Low cost; Setting a DBA is the easiest thing to do because it’s inexpensive. All you need to do is set the name and then register it with local authorizing bodies or the county clerk. But before you proceed, make sure you understand DBA registration requirements in your state because they vary from one state to the other.

Protection of privacy– DBA registration is mainly valuable for partnerships and sole proprietors who are after protecting their privacy but still want to do business.

Ease and affordability– DBAs are not only easy but affordable as well. As a result, they offer great flexibility for your business since you can expand the business. For instance, if your LLC is dealing with various business activities, you can set and register for a DBA for your new ventures under a single LLC.

Compliance; through filing a DBA, it’s possible to use your business name lawfully without necessarily integrating it as an LLC or a corporation.

Banking; You can easily set up a bank account for your business provided you’ve filed for a DBA.

Value;You can use a fictional name to enhance visibility for your business because you can market your products under an attention-grabbing DBA. Also, it allows you to open retail stores under the legal business name without violating the law.

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