Resource Centers:(News, information, and tools to support your practice)
November 2007
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DBA requirements for your practice
Know DBA requirements
You may have heard you need to file a “fictitious name” or “DBA” statement when you start your business.
A DBA (“doing business as”) statement (sometimes designated “d/b/a”) is required for businesses that operate under a different name from their legal business name. The requirement to obtain a DBA form was set up as a consumer protection measure, so everyone knows who is operating a business.
For example: John Smith, DC, wants to call his clinic “Chiropractic Wellness Center.” He must file a DBA that states John Smith, DC, is “doing business as” Chiropractic Wellness Center.
Typically, the DBA statement is posted in the newspaper of the town where the business is located. The intention of the law is to protect the public from fraud by compelling the business owner to record his name and making a further public record of it by publishing it in a newspaper.
Businesses prefer DBAs instead of personal names for several reasons:
• To develop a more professional business identity (“Chiropractic Wellness Center” sounds more professional than “John Smith, Chiropractor”);
• To create a marketing image as part of a USP (unique selling proposition) or brand; and
• To notify other businesses that this name is in the public records.
The requirement to file a DBA is necessary for sole proprietorships, but also for other business entities if they are doing business under a different name from the legal business name.
For example: If John Smith sets up Chiropractic Wellness Center as the legal name of the LLC (limited liability company), he doesn’t need to file a DBA. But if he sets up John Smith Enterprises as the LLC and operates under the
Let’s take another example, which assumes you are setting up a sole proprietorship. If you are a chiropractor named John Smith and you want to form Smith Chiropractic Center, it would be a good idea to file the DBA for everyone in the community (and your state) to know John Smith is running the practice.
To register a DBA, go to the county where the business is located (try the county recorder’s office). The form is inexpensive and simple to fill out. Because many banks require a DBA for a business bank account, complete the DBA filing before you obtain your business bank account. (You’ll have to use a personal check.) The DBA may take up to two weeks to process.
Be aware that registering as a DBA does not automatically prevent anyone else from using the name. If you are a sole proprietorship, you should reserve the business name with your state. If you are setting up an LLC or a corporation, this process includes business-name reservation, so you don’t need to pay extra for reserving the name.
Important note: Filing a DBA does not take the place of a trademark. If you want to trademark your business identity, you’ll need to register the trademark with the U.S. Patent and Trademark Office (USPTO), probably with the help of an attorney.
A final note: You can file a DBA online, but you’ll find the process faster and the cost lower if you go to the county where the business is located. It’s worth a few phone calls to find out where to file instead of paying the additional money for an online filing.
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