A DBA is required when a business wants to operate under a name that is not its official name.
An affiliate business is a business that is related to or partially owned by another business. Whether the affiliate needs a DBA depends upon the affiliate's entity type and whether it is registered to conduct business in the state where both businesses operate.
Legal Business Name
A business can operate only in a state where it is registered. Once registered, it must conduct business under the official name that is on file with the state. That name must be unique and not easily confused with any other business registered in the state. Sometimes, a business that was formed in one state might find that its name is not available to be used in another state where it also wants to do business. In that case, it must operate under a DBA.
Doing Business As
If the official name of a business is unavailable in a particular state, or if the business simply wants to differentiate certain products or services from its main business, it can operate under an assumed name, also known as a DBA or "doing business as." It is also known as a fictitious name or trade name in some states. In order to register a DBA with a state, a business usually fills out a statement of intent and files it with the secretary of state or the county clerk where the business will be operating.
When Needed
If an affiliate is incorporated or is an LLC, and it was formed in the state where you are considering a DBA, there would be no need for a DBA because the acceptance of the affiliate's formation papers by the state confers authority to use the name listed in the papers. If the affiliate is operating in a state other than where it was formed, it would first register with the state as a foreign entity. If the state accepts the foreign registration under the affiliate's official name, a DBA is not needed. If the affiliate is a partnership or a sole proprietorship and not an independent entity that had to register with a state, it would need to file a DBA in every state where it wants to operate under a name other than the name of the principal owners.
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