DBA application filing is a process overseen by state DBA laws and local government, protecting the public from nefarious business owners.
DBA is an abbreviation for “doing business as,” and is also referred to as a fictitious name or trade name. It is a required registration process for business owners who wish to conduct business under any name that differs from their legal name. In theory, it makes sense for one business to register a single DBA; however, there are circumstances under which it may be necessary to file multiple DBAs for the benefit of the business.
Single DBA application filing
Sole Proprietors and General Partnerships are required to file a DBA for their business if the individual(s) wants to conduct business under a fictitious business name.
Under these circumstances, only one DBA application is required. The state’s county clerk’s office, state department or similar agency manages the application process. It’s important to understand what your state requires to ensure your DBA is legitimate and safe to work under.
Multiple DBA application filings
Having multiple DBAs can be advantageous for Limited Liability Companies (LLCs) or Corporations.
For example, geography, culture or socioeconomic segmentation may help a company define its market for branding purposes, thus having an effect on what the company calls itself in those specific markets. Another reason a company may have multiple DBAs is that they wish to have a particular branch or department operate under its own name for various reasons. This may include making payments in the name of that department specifically or representing organizational benefits to financial assets.
If you’re still wondering how many DBA names you can register, the simple answer is as many as your local/state government will allow; however, DBA application filing costs money, so registering multiple names may be unnecessary.
If you have any additional questions, ask an expert here.