Registering a DBA (Assumed Name)

Filing a DBA protects the public from fraudulent use of a name – preventing someone from ‘hiding behind a business name’ – and protects the registered business from others who might try to impersonate them by doing business under that name.

Is a DBA Required?

A sole proprietorship is not always required to file for a DBA – an owner can operate under their actual name. This may cause difficulties when taxes are calculated because it can be hard to tell when a purchase was for the business and when it was for personal use. For accounting reasons, filing a DBA is a good idea. Having a legal assumed name on file also means bank accounts can be opened in that name. A checking account and credit cards can use the fictitious name as well.

Simple partnerships have the same requirements as sole proprietorships. A DBA is not required if the business operates under the partner's true names. A limited partnership does have to file for an assumed name at the Secretary of State’s Office as part of the paperwork necessary to create a limited partnership.

Other business structures – C Corp, S Corp, LLC – have name registration built into the formal process of creation. The formal name in these cases will include Inc. or LLC or Corp. as part of the name to identify the type of business to the public.

Where to File for a DBA

The local government authority (usually at the county level) will accept and register an assumed name. The cost is minimal. Although the requirements vary by jurisdiction, in general the owner or authorized representative personally fills out a form at the county treasurer's office. (Other departments that accept DBA applications are the County Register of Deeds or the Secretary of State.)

The name is checked for duplication (local) and then issued. A name can be challenged later. For instance, if a business takes the assumed name of Joe's Plumbing (plumbing being a licensed activity) and a complaint is filed because the owner (Joe) isn't a licensed plumber, the name can be judged to be misleading and it can be revoked. It can also be challenged on the basis of similarity to another name in the same locale. A fast-food outlet with the name “McDonall’s” might be seen as confusing to the public or an attempt at fraud.

Does Having a DBA Require a Separate Tax Filing?

Taxes (Federal and State) are based on the business structure, not whether there is an assumed name in place. Sole proprietorships file as individuals. There is a place to write in the DBA on the tax form, but the taxes are based on individual income and no ‘extra’ taxes are required. This is also true for simple partnerships.

Sole proprietorships with no employees do not require an Employer Identification Number (EIN) from the IRS. All other forms of business do, and sole proprietorships do when they have employees. The EIN is obtained from the IRS and entered like a social security number on tax forms.

A corporation or other formal entity files taxes in its own name. The company name and EIN identify each business uniquely.