The type of business structure as well as the state in which the DBA is registered will determine the benefits that the respective businesses can reap.

What are the benefits that a DBA has to offer for Sole Proprietorships and Partnerships?

Whether considering to register a DBA for a sole proprietorship or for a partnership, businesses get to receive the same benefits as those of an LLC, the only difference is that there is no personal liability protection, like I business would receive when forming an LLC.

Businesses that expect to earn a profit or who have determined to carry a risk, stand to gain more by forming an LLC or a corporation. With the formation of an LLC or a corporation, businesses can protect their personal assets in the event of the business being sued or suffering a major loss in the future.

What are the benefits of using a DBA name for a sole proprietorship?

·         The benefit of expanded Branding

·         Having Increased Privacy

·         Allowing the business access to Business Banking 

What are the branding benefits?

Say for instance a business is structured as a Sole Proprietorship or a Partnership, then said business will need to operate under their respective personal name, however, having a business registered as a DBA will allow for a business to market the business under a fictitious name.

What are the privacy benefits?

Considering that registering your business with a DBA allows for the business to operate under a fictitious name, this allows for the surname of business owners’ to remain unknown to the general public.

What are the banking benefits?

Operating and accepting payments in the name of business instead of the surname of the said business is good for business. This increases the trust as well as the credibility of the business.

Why should a business even consider a DBA?

It allows for a business to operate under a different name from the assigned legal name. 

How does LLCs and Corporations benefit from registering as a DBA?

With the formation of a formal business structure, be it an LLC or a Corporation, there is no need for a business to register a DBA name when the business intends on using a brand name, or whether the business plans on banking in the name of the LLC, or if the intention of the business is to create privacy. These characteristics are already a standard part of the respective business structures.

With the aid of a DBA the most important factor to take into account is that by registering a DBA formal business structures are allowed to create multiple brands, in other words business names, or lines of business under one LLC or Corporation. It also allows for business to use the DBA to rebrand an existing LLC or Corporation, instead of changing the main legal business name.

How to identify an LLC DBA example?

Say for instance a business decides to form an LLC and was initially a hardware store, ABC Hardware for example, the owner then maybe later down the line decides to expand the business and operate as a furniture and restoration business as well. The owner could then register the business as a DBA and then has the option of trading as ABC furniture. So now the business has the flexibility of trading and marketing as a furniture business as opposed to having to operate under the Hardware business name.

What guides a business owner’s decision to register a DBA?

It is usually considered in the instances where a business owner already has an existing formal business entity registered with the hope of branching out into new products, services or brands, or the aim is for the business to rebrand in general. The other option is when there is an unregistered business, this is usually a Sole Proprietorship or Partnership, and the owner would prefer to operate under a different name, other than the personal name assigned to the business. Owners should only consider this option if the said business has a very low profit and risk profile.

The benefits are countless and makes great business sense, so if this is something worth pursuing, click here and register your business as a DBA. 

By John