Filing a DBA as a sole proprietor is very inexpensive and there is minimum maintenance. Although there is minimal maintenance there is maximum liability. Sole proprietors are held personally liable for all business debts.

Example: David has been buying and selling items online for years and recently he has been making a decent profit on what he sells. David decides to make this his full time job and he wants to call his new company, “Online Auction.” Before David can conduct business under that name, he would need to file a DBA. Once the DBA is filed and approved he can legally conduct business under that name.

Corporations or LLCs may need to conduct business under a business name for a number of reasons. Before a corporation or LLC can do business under a different name, it must first file a DBA.

Example: Trophy Homes, Inc is a construction company that specializes in building homes. They are looking to expand the business and open a home remodeling division. Rather then starting a new business, they decide that any business the remodeling division does will be done under the name “Home Face Lift.” The company quickly files a DBA so it can do business under that name and keep track of the revenue this division brings in.

An LLC would be required to do the same as demonstrated above.

Some jurisdictions require publication of the DBA in the newspaper after filing. The publication must run in authorized newspapers pursuant to DBA filing requirements set forth in that jurisdiction.

Publication is generally required to be completed with in the first few months after the DBA was approved. The publication in the newspaper generally includes the DBA name, business address and who filed it. Failure to complete the required publication generally causes the DBA to be null and void. Here at DoMyLLC we insure that the filing for the DBA is completed along with any additional publication required.