Fictitious names for businesses can also be referred to as trade names or DBA’s, standing for ‘Doing Business As’, and there are several reasons why a business might want to use one:
You don’t want your personal name used for your business:
If you’re a sole proprietor or have a general partnership, unless you file a DBA, your personal name and your business name will automatically be the same when your business is listed on any public record. To protect your privacy, you might want to use a different business name.
You want to give your business a more creative name:
Whether you’re a sole proprietor or have a general partnership, you might your business to have a name that’s a little more creative than just your name. When you register for a DBA, you can then carry out your business under a different name other than your own.
Some banks require a DBA:
In order to open a bank account, your bank might require a DB, and they will often need you to show them the DBA filing or assumed name certificate as proof that you’ve actually registered the name.
Your entering a new line of business:
If you’re starting a new line of business that isn’t reflected by your current name, then a DBA can be used to market new products or services, and having a different name could be beneficial in helping differentiate between the two.
You want to operate under a domain name:
A DBA can be filed to enable a company to conduct business under their domain name, which can be especially useful when your company name is not available as a domain name. Filing a DBA to register a fictitious business name enables you to create a separate website for targeting a different audience.
You want to give your business more credibility:
If you have a DBA name, it can help strengthen your business credibility for sole proprietorships and general partnerships.
You want to inform the public about your DBA and brand:
When you register a DBA name, it becomes a public notification to other businesses that the name is being used, but in some states, filing a DBA doesn’t provide you with protection against someone else registering the same name.
You want your company name to be memorable:
Having a business name that’s easy to remember and spell, and which is search engine friendly, is an important consideration, and having a DBA enables you to guarantee this.
All of the above will depend upon your type of legal business entity, the type of business you’re involved in and your business growth strategies. It’s recommended to consult with an accounting professional to help you determine whether a DBA registration is the right decision for your business to make.