If you are going to do business under a name other than your own or your registered company name, you must do so with a DBA account. Understanding DBA registration and the bank accounts that go with this title will help you operate your business within the bounds of the law.
DBA stands for "Doing Business As" and is an official public registration of a business's name. A DBA account is a business bank account given to a business that has filed a DBA.
Individuals who are self employed often choose a DBA structure over another type of state registered business structure, like an LLC or corporation. This allows them to set up a business bank account without the need to go through the filing process for the more structured types of businesses.
Corporations and LLCs
Sometimes established businesses wish to do business under other names. In this case, the corporation or LLC must file a DBA under the state's laws in order to do so legally.
Any sole proprietor who intends to do business under a business name, not his own name, must use a DBA bank account. "Doing business" includes anything, including printing business cards or marketing the business's services.
DBA accounts vary from bank to bank, and some have strict limits on the number of monthly transactions the account holder can make, so businesses searching for DBA accounts need to look carefully for one that fits their needs.
Setting up a DBA account begins with filing for DBA status. Once the state issues the business license, the individual or business can approach the preferred bank to set up the account according to the bank's terms.