When you start a business, you'll need to decide on a name. For sole proprietors and some partnerships, this name might be your own legal name, like 'John Smith' or 'Smith & Jones'. However, many entrepreneurs want to operate under a more professional or creative business name, such as 'Sunshine Landscaping' or 'The Book Nook'. This is where a DBA, or 'Doing Business As' name, comes into play. A DBA account, in essence, is the bank account associated with this fictitious business name, allowing you to conduct financial transactions separately from your personal finances. It's crucial to understand that a DBA is not a legal business entity like an LLC or a Corporation. Instead, it's a trade name or assumed name that a business owner uses to operate under. Filing for a DBA is often a simpler and less expensive process than forming a new legal entity. It's a way for sole proprietors, partnerships, or even existing LLCs and Corporations to use a trade name without creating a separate legal structure. This guide will break down what a DBA is, why you might need one, and how it relates to opening a business bank account.
Start your formation with Lovie — $29/month, everything included.