Financial Glossary
Doing Business As (DBA)
A DBA (Doing Business As), also called a fictitious business name or trade name, is a registration that allows a legal entity or individual to conduct business under a name other than their formally registered legal name. A sole proprietor named James Carter can file a DBA to operate as Carter Outdoor Rentals without forming a separate LLC. Similarly, an LLC formed as Coastal Holdings LLC might register a DBA to serve customers under the brand name Pelican Bay Campground. DBAs are registered at the county or state level depending on jurisdiction, and most registrations must be renewed periodically. A DBA does not create a separate legal entity and does not provide liability protection.
Problem & Application
A campground owner who operates three properties under one LLC may file a separate DBA for each location to maintain distinct branding: Pinewood Retreat, Lakeside Camp, and Summit RV Park all operate under one legal entity but market themselves independently. This simplifies bookkeeping (one set of bank accounts and tax filings) while enabling location-specific marketing. However, if the owner later sells one property, the DBA name may be part of the deal's goodwill, requiring the purchase agreement to address which party retains rights to the trade name. For bookkeeping and tax purposes, income and expenses from each DBA location should be tracked separately using class or location codes in accounting software, so the owner can evaluate each property's profitability independently even though they file under one entity.
In Short
A DBA enhances brand identity but requires compliance with local registration laws.
