Glossary

Doing Business As (DBA)

The term "Doing Business As" (DBA) refers to the adoption of a secondary name that a business may legally use that is different from its officially registered name. This secondary name is also known as an assumed name, fictitious business name, or trade name. The purpose of a DBA is to allow companies to conduct business under a name that better represents their brand or line of business without having to create a new legal entity.

To use a DBA, a company must file the name in accordance with local laws, which typically involves registering with a state or local government agency. Failure to properly file a DBA can result in fines and penalties. For sole proprietors, who often operate under their personal names, filing for a DBA allows them to use a more marketable business name, enhancing their professional image and helping to separate personal and business finances. Larger organizations may use multiple DBAs for different branches or product lines to enhance marketing efforts or to facilitate expansion without needing to establish new legal entities. Overall, DBAs provide flexibility for business operations and are an important aspect of identity management and legal compliance for businesses of all sizes.

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