What does Dba Mean?

DBA is the acronym for the term "doing business as." When an individual owns one business and they want to begin another business, they often don't want to go through the hassle of the set-up and the legal responsibilities that are necessary. To help resolve this situation, they can legally create a DBA for the secondary business.

“There is just no easier or less expensive way to operate a secondary business under a legal business name. Here's an example of how a DBA would be helpful: John owns ABC Plumbing and the company has been in business for 14 years. Recently, he has wanted to branch out to handle electrical work as well.

Since everything tied into his business is based on ABC Plumbing, it would be a tremendous undertaking to change everything to a new business name. John instead decides to apply for a DBA on the electrical side of things. He files his DBA as DEF Electric.

What winds up happening is that ABC Plumbing is now entitled to "do business as" DEF Electric. All the jobs John gets from both fields are now handled under the original company's legal umbrella. Why Apply for a DBA?

A DBA simply makes it easier and less expensive to expand your business. With your DBA, you can advertise under the new name as well as accept payments in its name. Plus, you can get a separate business checking account and business phone listing under the DBA name.

There is just no easier or less expensive way to operate a secondary business under a legal business name. The cost savings can be huge, especially if you are considering opening a chain of businesses. How to Apply for a DBA!

Each state has an individual set of rules and regulations for applying for a DBA. In fact, many states handle the process at the county level. You will want to contact your county administration building for forms and information regarding the application and fees.

It's also common for many states to require the business owner to file a DBA with the state's Secretary of State. The DBA Filing Process When you contact your county administration office, you can search a database to ensure that the name you want for your company isn't already in use. Once you determine that the name is not in use, you can submit your application with the applicable fee.

The fee varies among the states, but it is typically between $10 and $50. Once your DBA reaches approval, some states may require you to place an ad in the local newspaper stating that you are now doing business as your DBA name. As you can see, filing for a DBA can be quite advantageous when someone wants to open a second business under the legal name of the original company.

Choose a great name, register it, and purchase the domain name for your new website, and good luck!