DBA.

In plain English

A DBA, short for doing business as, is a public registration of a business name that differs from your own legal name or your company's official name. It is also called a fictitious business name, an assumed name, or a trade name depending on the state. Filing a DBA does not create a separate legal entity and gives you no liability protection; it simply lets you legally advertise, sign contracts, and accept payments under a chosen name. A sole proprietor named Jane Smith who wants to operate as Bright Path Bookkeeping files a DBA to do so.

01Why it matters

Many banks will not let you deposit checks made out to a business name unless you have registered that name as a DBA, so it can be the difference between getting paid and not.

02The math, step by step

Jane Smith runs her bookkeeping business as a sole proprietor. She wants to brand it as Bright Path Bookkeeping, so she files a DBA with her county. Now she can put that name on invoices, take checks written to Bright Path Bookkeeping, and open a bank account under it. Filing fees vary by state, county, or city, so check your local business filing office.

03What this is NOT

04Receipts

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