Self-employed Architects

Definition of a DBA

DBA is an abbreviation for “doing business as.” If you’re a sole proprietorship, you need a DBA to register your business name. Corporations and LLCs need a DBA if they use a different name than what’s filed with the state.

For a corporation, LLC, or other state-registered entity, the legal name is the name on the filed articles so, if you want your corporation or LLC wants to operate under a different name, you must file a DBA registration. For all other business structures, such as a sole proprietorship or partnership, the legal name is the personal name of the business owner or owners. Conducting business and opening a bank account under any name other than your legal business name is only possible after fulfilling your state’s DBA filing requirement.

Reasons to get a DBA

Name recognition is crucial to a company’s success. Therefore, it is important to make the name you choose official. Name acknowledgement is achieved when the business name is used in all transactions, from marketing and sales to collecting money. Many business owners choose a name other than their given personal name in order to establish name recognition and to identify goods sold or services provided. Unless you operate a corporation or LLC, you will not be able to receive money or hold a business bank account under a business name until you have filed, and, when applicable, published what is commonly referred to as a DBA.

A business that operates under any name other than its owner’s personal name, or the name that was filed with the state, is legally required to file a DBA “doing business as” statement. The DBA statement may also be referred to as a “fictitious business name,” “trade name” or “assumed name.” In the case of corporations or LLCs, the statement can be used to inform the public of the previous legal company name that existed. With sole proprietorships or partnerships, a DBA statement informs the public of the owner’s personal name or the name under which they are conducting business.

Uses for a DBA

The most significant use of a DBA is the ability for a sole proprietorship to open a business bank account and collect money using a name other than its legal name. In many cases, more than one business can operate under the same DBA. There is no protection or exclusivity offered by operating solely under a “doing business as” name. When registering your DBA, you may also find a corporation, LLC, sole proprietorship or other business entity using the same or a similar business name.

Requirements for a DBA

In NYS, you must file your DBA statement before using your DBA in the operation of your business. In some cases, it must be filed within 30-40 days of your first business transaction. In addition, several states require that you publish your DBA statement in a local newspaper, and then file proof of publication with the proper government office. The purpose of the publication requirement is to ensure the public is informed of new businesses in the area, their legal name and ownership.

Restrictions on DBA names

A DBA for a sole proprietorship or general partnership may not contain any word or corporate ending implying it is anything other than a DBA. For example, if Joe Smith operates a sole proprietorship under “ABC Plumbing,” he cannot file a DBA as “ABC Plumbing, Inc.” Using a corporation or LLC ending requires forming such an organization with the appropriate state agency.

Advantages of a DBA

When you are starting up your business (Consulting Architect), you definitely want to keep costs low and the process simple. Filing for a DBA helps you to do that. In addition to the tax advantages afforded to you by being self-employed, including access to customized healthcare, choosing your own schedule, rates, and projects to work on. You do not have the ongoing record keeping requirements and other formalities of maintaining a corporation or LLC, or the costs associated with forming a corporation or LLC. Once your business is running profitably, you may want to convert it to an LLC to protect your personal assets and business name,” “trade name” or “assumed name.” In the case of corporations or LLCs, the statement can be used to inform the public of the previous legal company name that existed. With sole proprietorships or partnerships, a DBA statement informs the public of the owner’s personal name or the name under which they are conducting business.

Does a DBA boost your consulting business opportunities?

As a self-employed consultant you have no business identity and no opportunity to brand your services or make yourself unique when competing for new consulting projects. An invoice from “CreativeDesigns” is more credible than an invoice with just your name with no business identity. Furthermore, payment of your fees from a client is more credible when paid to a business entity rather than you personally. As a business entity you can begin the process of branding, or separating yourself from others without it. Branding is the process of creating distinctive and durable perceptions in the minds of consumers. A brand is a persistent, unique business identity intertwined with associations of personality, quality, origin, liking and more.  When people have a positive experience with a memorable brand, they’re more likely to request that service again than competing brands.

For information regarding obtaining a free DBA. application from CFA

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