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Why form a DBA?

There are several benefits to filing a DBA. First of all, it allows you to choose a name that identifies what your business does. Simply naming your business after your own name will not be enough to let the public know what type of services your business offers.

Officially registering a DBA has the following advantages...
  • Open bank accounts under that business name.
  • Write and cash check under business name.
  • Mention business name in contracts.
  • Legally publish business name in advertisements, including phone books and business cards.
  • Discourage competitors from using your business name.
  • Establish name recognition and have a name that reflects goods sold or services provided.
  • Puts others on notice that your business exists and they should not conduct business under a similar name.

Another benefit of a DBA is that it allows a corporation to operate several businesses with different names without having to legally create a separate entity for each.

Suppose you want to create a chain of coffee houses in neighboring towns, but you want to name each of the coffee houses individually. You can incorporate under one name and file each individual coffee house as a separate DBA.

This is beneficial because filing as a DBA is less expensive and time consuming than incorporating every time your business expands.

Click Here to learn more about registering a DBA.
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