DBA is the acronym of “doing business as”.
Corporations and LLCs can request to operate under a different name than what is registered with the secretary of state.
This is required for a sole proprietorship to operate under a business name other than the name of the individual. With multiple DBAs it is possible for a business to operate under various different names.
One corporate bank account (one corporations) can accept money under various names with multiple DBAs.
Questions & Answers
What is possible for a business with a DBA?
- Accept payments under multiple different names.
- Conduct business under new name
Can one company have more than one DBA?
Yes. It is possible for a company to file the forms multiple times. This make it possible for a company to accept payments under various names.
If a company has multiple DBAs is that company required to file more than one corporate tax return?
No. One of the major benefits this corporate structure is that it is simpler and less expensive than forming a new company. Multiple companies require multiple bank accounts, EINs (employee identification number) and tax returns. The IRS looks at company that operates under multiple names as a single entity; that means it only needs to file one tax return.
Can this help me offer multiple services from more one corporation?
A DBA can help a non specialized company seem very specialized.
Example: Smith General Contracting wants to win a contract to install electrical wiring in a building that is about to be constructed. Operating under a different names, the company could bid for the contract under the name Smith Electrical. This name makes it appear that the company focuses on exclusively on electrical contracting. People tend to think that a company that only does one thing will do that better than a company that does many things.
What are the benefits for ecommerce?
An ecommerce company with one or more DBAs can hold many domain names within the same corporation. Many banks will allow customers to create sub account for different websites. With a DBA it is possible to accept payment under various names with only one bank account.
Can DBAs be added to an existing corporate bank account?
An existing company can add as many DBAs as it wishes to an existing bank account.