Why Form a DBA?
There is a laundry list of benefits to forming 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 my 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.
- Create and establish a brandable name that accurately reflects your services/goods. (i.e. Staten Island Landscaping, instead of Mark Norwood)
- Helps you level the playing field and compete in industries where competitors also use registered business names.
- Puts others on notice that your business exists and not to conduct business under a similar name.
- If your business eventually folds or is hit by scandal, then your personal name won’t be tied to that failure.
- Adds credibility to your business and may make it easier to sell if you decide to exit.
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. So, whatever your specific business is from e-commerce businesses that sell iPhone parts to SEO firms for Dentist websites.
This is beneficial because filing as DBA is less expensive and time consuming than incorporating every time your business expands.