Use of a DBA required for different business names

Part of business incorporation requires adhering to legal requirements, including registering any different names that business might be conducted under.

If the name used by a business differs from the one registered with the state, a fictitious business name must be filed.

Some states use different terminology for a fictitious business name. Many refer to a “DBA” (Doing Business As), but a “trade name” or “assumed business name” is the same thing.

However, having a DBA does not provide any extra protection from financial liability. Forming a new corporation is the only way to legally protect different businesses or individuals from liability in the event of a bankruptcy or other financial debt.

Many new corporations may look to expand by opening several divisions or locations, and sometimes use different names, requiring an annual filing.

Filing a fictitious business name is up to the business owner. The California attorney general is warning entrepreneurs who may be contacted by disreputable “DBA renewal” firms that ask for a fee to renew, using official-looking state stationery, according to the Victorville Daily Press.

California filed suit against several of these firms last year.

More about DBA Filings