Who Needs a DBA: What It Is, How It Works, and How to Get One in Georgia

If you’re starting a business, you’ve likely come across the term "DBA" and wondered whether it applies to you. A DBA, or "Doing Business As," is a legal mechanism that allows you to operate under a different name than your legal business name. Understanding who needs a DBA, how it works, and how to get one in Georgia can help you make an informed decision for your business.

What Is a DBA?

A DBA, also known as a trade name, fictitious name, or assumed name, allows businesses to operate under a name other than their legal business name. For example, if you own a sole proprietorship under your name, "John Doe," and want to open a coffee shop called "Doe’s Brews," you would need a DBA for that business name. Essentially, it’s a way to legally conduct business under a different brand name without creating a separate legal entity.

A DBA is not the same as forming a business entity like a corporation or LLC. It does not provide personal liability protection, and it is not a business structure. It’s simply a name that allows you to conduct business under a different identity.

Who Needs a DBA?

Several types of businesses typically need a DBA:

1. Sole Proprietors or Partnerships
   If you’re a sole proprietor or part of a general partnership and plan to do business under a name other than your own legal name, you’ll need to file a DBA. For example, if your legal name is "Jane Smith," but you plan to run a bakery called "Sweet Treats Bakery," you’ll need a DBA for the business name.

2. LLCs and Corporations
   Even if you have an LLC or a corporation, you might need a DBA if you want to operate under a different name from the one on your business registration. For instance, if your LLC is called "Atlanta Marketing Group, LLC" but you plan to launch a specific service called "Peach City Digital," you would need to register a DBA for that name.

3. Franchise Owners
   Franchise owners often file DBAs. While they may operate under a franchise brand, the legal business entity may be in the owner’s name or another corporate structure, so a DBA helps align the brand name with the public-facing business.

How Does a DBA Work?

A DBA allows you to use a business name that’s different from your legal business name. Here’s how it typically works:

• Operating Under a Different Name: Once your DBA is registered, you can open business bank accounts, sign contracts, and market your business under the DBA name. It’s essential for branding purposes, especially when the legal business name doesn’t reflect the company’s operations.

• No Legal Protection: Unlike forming an LLC or corporation, filing a DBA does not protect your personal assets or provide any legal separation between the business owner and the business. A DBA simply allows you to use a different name, but you remain personally liable for the business’s debts and obligations unless you’ve structured the business as an LLC or corporation.

• Multiple DBAs: You can have more than one DBA. For instance, if you own an LLC and want to run multiple businesses under that LLC, you can file separate DBAs for each business, even though they all fall under the same legal entity.

When Should You Use a DBA?

There are several instances where using a DBA makes sense:

1. For Branding Purposes
   If you’re a sole proprietor and want to establish a distinct brand name for your business, a DBA is a simple and cost-effective way to do that. It allows you to market and operate under a brand name without forming a new entity.

2. Operating Multiple Businesses
   If you’re running multiple business ventures but want to keep them all under one legal entity, DBAs allow you to give each business its unique name while keeping everything under one LLC or corporation.

3. Expanding Your Business
   If your current business entity doesn’t reflect the new direction or services you plan to offer, a DBA can allow you to create a new business identity without the need for re-incorporation or formation of a new LLC.

4. Entering a New Market
   If your business is entering a new market or opening a new location, you might want to create a different identity or brand for that new endeavor, especially if the name will resonate better with the local market or the specific audience you’re targeting.

How to Get a DBA in Georgia

In Georgia, it is important to follow the necessary steps to ensure legal compliance. Here’s how you can get a DBA in Georgia:

1. Choose a Name
   First, you’ll need to decide on the name you want to use. Make sure the name is unique and doesn’t conflict with any existing business names in Georgia. You can check name availability through the Georgia Secretary of State’s website.

2. File a DBA with the County Clerk
   In Georgia, DBAs are filed at the county level, not the state level. You’ll need to file the appropriate paperwork with the Superior Court Clerk in the county where your business is located. This is known as filing a "Trade Name Registration." Each county has its own specific forms, but they generally require you to provide information about your legal business name, the DBA name, and the nature of your business.

3. Publish a Notice in a Local Newspaper
   Once you’ve registered your DBA with the county clerk, Georgia law requires you to publish a notice of the filing in a newspaper that’s widely circulated in the county where your business is located. This publication usually needs to run for two consecutive weeks.

4. Fees
   Filing fees vary by county, but typically range from $25 to $50. The cost of publishing the notice in the newspaper can vary as well, depending on the publication you use.

5. Renewal
   In Georgia, DBAs don’t need to be renewed regularly. However, if you stop using the DBA or make changes to your business, such as forming a new legal entity or changing the business structure, you may need to file new paperwork to keep your records up to date.

Conclusion

A DBA is an essential tool for many business owners, allowing them to operate under a different name while maintaining their legal business entity. Whether you’re a sole proprietor looking to create a brand identity, an LLC expanding into new markets, or simply wanting to differentiate multiple business ventures, a DBA can provide the flexibility you need.

If you have any questions and/or need help with the requirements listed above, please feel free to schedule a consultation with us today and we’ll walk you through (or complete) all needed steps for you!