Can a DBA Be Filed For All Business Types?

Each type of business entity has clear advantages and disadvantages. Can a DBA be filed for all business types? In most cases, yes; but understanding what a DBA is and what it’s limitations are will help you decide if it’s worth the effort, or if establishing a different type of business is a better option for your company.

What is a DBA Application Filing?

DBA application filing (doing business as, also referred to as an assumed name, or fictitious business name) permits a business to operate under a name that differs from the legal name of the person establishing business.

For example, sole proprietors and general partnerships are the responsibility of the individual(s) that establish them; they are liable for any debts the company takes on, and all income, losses, and deductions are claimed on personal tax returns. Therefore, the name of the company is synonymous with the person who established the business.

Conversely, to establish a corporation, artless of incorporation must be registered; articles of organization are registered for all limited liability companies filing (LLC). In both of these cases, the person who establishes these business entities is not personally liable for the company’s debts, and the business entities are taxed separately from personal income.

Can a DBA Be Filed For All Business Types?

DBA application filing can be registered in all three of these instances, as well as for nonprofits and S-corporations, for any of the following reasons:

  • The individual establishing the businesses doesn’t assume the nature of the business
  • An LLC or corporation may wish to create subsidiary companies with unique names
  • Unique branding opportunities in specific market locations may be advantageous

Filing a DBA takes time and costs money; therefore, unless you need to file a DBA, it’s only necessary if and when you decide to do business with a name other than your given one.

To answer any additional questions, ask an expert here.