A DBA (also known as a “sole proprietorship”, “Doing Business As”, or a “Fictitious Name”) is a business that is not separate from its owner, merely a different name that the business owner operates under. The owner is personally liable for the company and its debt; all income is added on the owner’s personal tax returns (pass-through taxation). If there is more than 1 owner, than the business is classified as a “Partnership”.
PROS: Easy to setup, easy to maintain.
CONS: Owners are personally liable for the company and its debt ( you could lose your house, cars, personal assets, etc.) in a lawsuit. Usually not recognized at the State level, only in your city/county. No corporate “prestige” of having the “Inc.” or “LLC” attached to your name.
How to get Started: DBA’s are typically filed at the County Clerk’s office or at the State level. Getting a DBA or FBN can be a complicated task. There are thousands of counties in the United States and each has its own particular filing requirements. Some jurisdictions require a separate publishing in a newspaper that notifies the public of your intent to “do business as” another name.
