Why use a Fictitious name?

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Getting a DBA is a quick and easy process to do for all business owners. The process in general is to first find a state to register in, the second is to find a suitable name for your DBA and the third is to register it with the state, pay the fee and comply with the regulations in the state that you’re applying in.

However, if we focus on the second step of the procedure which is to figure out a name for your DBA, we can bring up the question as to why you should ‘use a fictitious name?’ In this article, we look at several reasons to file a DBA under a fictitious name.

Privacy

One of the main benefits is that if you are a sole proprietor that doesn’t want to use your real name as your DBA, you can of course come up with a fictitious name. For example, the sole proprietor may have the name ‘Jane Doe’ but doesn’t want to include her real name for her business and may want to use the name ‘Art photography’ as a DBA. This then creates privacy for the sole proprietor and keeps their real name away from the public eye. 

This kind of privacy can apply to all businesses, as it is not necessary to include your personal name in the DBA, but to choose a fictitious name for your business instead.

Good impression

By creating a good fictitious name for your company, you also have the opportunity to create a good impression for your brand too. Having a good impression is very important for your business, because it is what attracts the clients and catches their eye with the DBA you have chosen. If you are looking to expand your trade or services under a DBA that is different from your legal business name, you are practically given a second chance to give a good impression all over again.

Make it memorable

By creating a fictitious DBA for your brand, you can make it memorable and snappy for the client’s to use as a nickname that can trend. McDonalds is a prime example that now famously has the nickname Maccy D’s which is now used globally, since it is a catchy nickname that’s memorable. By registering a DBA, it is a clever way to make your legal entity name shorter and easier to use.

No extra paperwork needed

What is great about registering a DBA is that you do not need to create a whole new legal entity, but only just register it under a state. This means that if you have always wanted a secondary name that may sound more appealing or relatable to your expanded brand, you have the chance to create a fictitious name as a DBA. You also do not need to do a separate filing for taxes, since it’ll all be under the same legal entity.

You can get inspired

What is great about creating a fictitious name is that you can use a name search database to get creative and inspired for your DBA. It doesn’t have to be something boring, but a name that can actually stand out instead.

Under the same bank account

By creating a fictitious name for your DBA doesn’t stop you from having any financial problems with your company. In fact, payments can be made under your DBA and your legal entity, using the same bank account for your finances. However, if you do wish to create a separate bank account for your DBA, then that is also possible.

Claim a domain

By getting creative with your fictitious name for your DBA, this also allows you to expand online and obtain a domain name (URL) that can also be creative and memorable for your clients. Instead of using your legal entity as an online domain, you can use your DBA for the brand that you wish to expand.