This means you’ll be absolved of any personal liability associated with your business and business bank account, including legal protections if you default on things like small business loans. When you incorporate your business, you’re creating a separate legal entity (beyond a legal business name and separate bank account) from your personal assets, personal name, etc. Corporation and Limited Liability Company (LLCs)Ī quick refresher on what business structures like corporations and limited liability companies (LLC) entail: If you’re uncertain about whether or not you need to file a DBA, get in touch with your local (town or county) clerk’s office and ask them if it’s necessary. But, if it’s just his first name, (i.e., Gordon’s Gardening Service), then a DBA is required because it’s not his full, legal name.īasically, the business owner and the business are one and the same entity, which means they have the same name, too - unless they file a DBA. In Gordon’s case, if his business were called Gordon Flanders’s Gardening Services, he wouldn’t need a DBA. In some cases, you don’t need to file a DBA if your business name is a combination of your name and a description of your product or service. (Though they do still need to acquire the necessary business licenses and permits.) For example, if sole proprietor Gordon Flanders wanted to name his garden shop Green Thumbs McGee’s, he’d need to file a DBA. This means they don’t need to file legal entity formation papers or a business entity name with the state. The reason for this is that, as a business entity, a sole proprietorship and general partnership are unincorporated ways to conduct business. If the business structure in which you conduct business is a sole proprietor or general partnership, you’ll need to file a DBA if your business has a different name than your own name. would need to get a DBA: Sole Proprietorships and General Partnerships In general, there are two reasons a business in the U.S. Needing a DBA name is tied closely to the type of business structure your business operates under.
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