You’ve probably heard a great deal about filing a DBA once you’ve registered your business and obtained your EIN. But is it legally necessary to file a DBA to do business as a legal entity? Technically, no. Once you’ve established yourself as a legal entity, you’re eligible to do business under your company’s legal name. That doesn’t mean you don’t want a DBA, though, especially if you want to operate under a specific brand name.
Understanding a DBA
Just what is a DBA business license? In short, it’s permission to legally run your business under a brand name, rather than your legal name. In many cases your business must be registered as your legal name when securing your federal tax ID, but you may wish to do business as your brand name. This also applies to partnerships where the legal name is the last name of the partners, while the company name may be something else entirely.
Not Required, But Essential Nonetheless
You may be asking “Do I need a DBA for my business?” While a DBA is not legally required, most businesses can’t function without them. If your company sells fine chocolate pastries, you’ll have more success on the market with a business name that reflects your brand rather than a business name that matches your birth certificate. If every operating company ran by its legally filed name, then consumers wouldn’t be able to determine their market offerings at a glance. Filing a DBA form is essential to creating brand differentiation.
If you’ve already learned and are ready to take that next step, you can in just a few easy clicks. Our easy forms and questionnaires can walk you through the process, or you can partner with one of our customer care specialists and consultants to learn more and get the guidance you need.