Doing business as
Encyclopedia
The phrase
"doing business as" (abbreviated DBA, dba or d/b/a) is a legal term
used in the United States, meaning that the trade name
, or fictitious business name
, under which the business or operation is conducted and presented to the world is not the legal name of the legal person (or persons) who actually own it and are responsible for it. In other countries the expressions operating as (abbreviated o/a) or trading as (abbreviated T/A) are used for a similar purpose. The desired name might not have been registrable, or the business might be owned by another company, franchisee, or a sole proprietorship, resulting in all legally binding transactions taking place on behalf of the trading as name.
The distinction between an actual and a "fictitious" name is important because businesses with "fictitious" names give no obvious indication of the entity that is legally responsible
for their operation.
, Ireland
, South Africa
, Australia
, New Zealand
and Hong Kong (and some parts of the United States
), the phrase trading as (abbreviated t/a) is used.
In the United Kingdom there is no filing requirement for a "trading as" name, but there are requirements for disclosure of the true owner's name, and some restrictions on the use of certain names.
uses Assumed Business Names; Washington calls DBAs trade names; other states refer to trade styles or fictitious business names.
In many U.S. jurisdictions for consumer protection
purposes, most jurisdictions require businesses operating with fictitious names to file a DBA statement. This also reduces the possibility of two local businesses operating under the same name. Note, though, that this is not a replacement for obtaining a trademark
. A DBA filing carries no legal weight in instances where a trademark would be necessary.
DBA statements are often used in conjunction with a franchise
. The franchisee will have a legal name under which it may sue and be sued, but will conduct business under the franchiser's brand name (which the public
would recognize). A typical real-world example can be found in a well-known pricing mistake
case, Donovan v. RRL Corp., 26 Cal. 4th 261 (2001), where the named defendant, RRL Corporation, was a Lexus
car dealership doing business as "Lexus of Westminster", but remaining a separate legal entity from Lexus, a Division of Toyota Motor Sales, U.S.A., Inc.
, which was not even mentioned in the California Supreme Court opinion.
Notably in California
and also in other areas, filing a DBA statement also requires that a notice of the fictitious name be published in local newspaper
s for some set period of time to inform the public of the owner's intent to operate under an assumed name. The intention of the law is to protect the public from fraud, by compelling the business owner to record his/her name with the County Recorder
, and making a further public record of it by publishing it in a newspaper.
Of notable interest, INDYCAR
is legally a trade name. The company's name is legally "Indy Racing League LLC" doing business as INDYCAR.
Phrase
In everyday speech, a phrase may refer to any group of words. In linguistics, a phrase is a group of words which form a constituent and so function as a single unit in the syntax of a sentence. A phrase is lower on the grammatical hierarchy than a clause....
"doing business as" (abbreviated DBA, dba or d/b/a) is a legal term
Legal writing
Legal writing is a type of technical writing used by lawyers, judges, legislators, and others in law to express legal analysis and legal rights and duties.- Authority :...
used in the United States, meaning that the trade name
Trade name
A trade name, also known as a trading name or a business name, is the name which a business trades under for commercial purposes, although its registered, legal name, used for contracts and other formal situations, may be another....
, or fictitious business name
Pseudonym
A pseudonym is a name that a person assumes for a particular purpose and that differs from his or her original orthonym...
, under which the business or operation is conducted and presented to the world is not the legal name of the legal person (or persons) who actually own it and are responsible for it. In other countries the expressions operating as (abbreviated o/a) or trading as (abbreviated T/A) are used for a similar purpose. The desired name might not have been registrable, or the business might be owned by another company, franchisee, or a sole proprietorship, resulting in all legally binding transactions taking place on behalf of the trading as name.
The distinction between an actual and a "fictitious" name is important because businesses with "fictitious" names give no obvious indication of the entity that is legally responsible
Legal liability
Legal liability is the legal bound obligation to pay debts.* In law a person is said to be legally liable when they are financially and legally responsible for something. Legal liability concerns both civil law and criminal law. See Strict liability. Under English law, with the passing of the Theft...
for their operation.
Trading As or T/A Abbreviation
In the United KingdomUnited Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, Ireland
Republic of Ireland
Ireland , described as the Republic of Ireland , is a sovereign state in Europe occupying approximately five-sixths of the island of the same name. Its capital is Dublin. Ireland, which had a population of 4.58 million in 2011, is a constitutional republic governed as a parliamentary democracy,...
, South Africa
South Africa
The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...
, Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
, New Zealand
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...
and Hong Kong (and some parts of the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
), the phrase trading as (abbreviated t/a) is used.
In the United Kingdom there is no filing requirement for a "trading as" name, but there are requirements for disclosure of the true owner's name, and some restrictions on the use of certain names.
United States
In several U.S. states, DBAs are officially referred to using another term. OregonOregon
Oregon is a state in the Pacific Northwest region of the United States. It is located on the Pacific coast, with Washington to the north, California to the south, Nevada on the southeast and Idaho to the east. The Columbia and Snake rivers delineate much of Oregon's northern and eastern...
uses Assumed Business Names; Washington calls DBAs trade names; other states refer to trade styles or fictitious business names.
In many U.S. jurisdictions for consumer protection
Consumer protection
Consumer protection laws designed to ensure fair trade competition and the free flow of truthful information in the marketplace. The laws are designed to prevent businesses that engage in fraud or specified unfair practices from gaining an advantage over competitors and may provide additional...
purposes, most jurisdictions require businesses operating with fictitious names to file a DBA statement. This also reduces the possibility of two local businesses operating under the same name. Note, though, that this is not a replacement for obtaining a trademark
Trademark
A trademark, trade mark, or trade-mark is a distinctive sign or indicator used by an individual, business organization, or other legal entity to identify that the products or services to consumers with which the trademark appears originate from a unique source, and to distinguish its products or...
. A DBA filing carries no legal weight in instances where a trademark would be necessary.
DBA statements are often used in conjunction with a franchise
Franchising
Franchising is the practice of using another firm's successful business model. The word 'franchise' is of anglo-French derivation - from franc- meaning free, and is used both as a noun and as a verb....
. The franchisee will have a legal name under which it may sue and be sued, but will conduct business under the franchiser's brand name (which the public
Public
In public relations and communication science, publics are groups of individuals, and the public is the totality of such groupings. This is a different concept to the sociological concept of the Öffentlichkeit or public sphere. The concept of a public has also been defined in political science,...
would recognize). A typical real-world example can be found in a well-known pricing mistake
Mistake (contract law)
In contract law, a mistake is an erroneous belief, at contracting, that certain facts are true. It can be argued as a defence, and if raised successfully can lead to the agreement in question being found void ab initio or voidable, or alternatively an equitable remedy may be provided by the courts...
case, Donovan v. RRL Corp., 26 Cal. 4th 261 (2001), where the named defendant, RRL Corporation, was a Lexus
Lexus
is the luxury vehicle division of Japanese automaker Toyota Motor Corporation. First introduced in 1989 in the United States, Lexus is now sold globally and has become Japan's largest-selling make of premium cars. The Lexus marque is marketed in over 70 countries and territories worldwide, and has...
car dealership doing business as "Lexus of Westminster", but remaining a separate legal entity from Lexus, a Division of Toyota Motor Sales, U.S.A., Inc.
Toyota Motor Sales, U.S.A., Inc.
Toyota Motor Sales, U.S.A., Inc. is the Toyota sales, marketing, and distribution subsidiary devoted to the U.S. market. Founded in 1957 in California, TMS currently employs more than 6,500 people...
, which was not even mentioned in the California Supreme Court opinion.
Notably in California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
and also in other areas, filing a DBA statement also requires that a notice of the fictitious name be published in local newspaper
Newspaper
A newspaper is a scheduled publication containing news of current events, informative articles, diverse features and advertising. It usually is printed on relatively inexpensive, low-grade paper such as newsprint. By 2007, there were 6580 daily newspapers in the world selling 395 million copies a...
s for some set period of time to inform the public of the owner's intent to operate under an assumed name. The intention of the law is to protect the public from fraud, by compelling the business owner to record his/her name with the County Recorder
Recorder of deeds
Recorder of deeds is a government office tasked with maintaining public records and documents, especially records relating to real estate ownership that provide persons other than the owner of a property with real rights over that property.-Background:...
, and making a further public record of it by publishing it in a newspaper.
Of notable interest, INDYCAR
IndyCar
IndyCar is the trade name of an American-based open-wheel auto racing sanctioning body. IndyCar sanctions three racing series, the premier IZOD IndyCar Series with its centerpiece Indianapolis 500, and developmental series Firestone Indy Lights and the U.S...
is legally a trade name. The company's name is legally "Indy Racing League LLC" doing business as INDYCAR.
See also
- Business organizations
- Pen namePen nameA pen name, nom de plume, or literary double, is a pseudonym adopted by an author. A pen name may be used to make the author's name more distinctive, to disguise his or her gender, to distance an author from some or all of his or her works, to protect the author from retribution for his or her...
- PseudonymPseudonymA pseudonym is a name that a person assumes for a particular purpose and that differs from his or her original orthonym...
- Service markService markA service mark or servicemark is a trademark used in some countries, notably the United States, to identify a service rather than a product. When a service mark is federally registered, the standard registration symbol ® or "Reg U.S. Pat & TM Off" may be used...
- Trade dressTrade dressTrade dress is a legal term of art that generally refers to characteristics of the visual appearance of a product or its packaging that signify the source of the product to consumers...
- Trade nameTrade nameA trade name, also known as a trading name or a business name, is the name which a business trades under for commercial purposes, although its registered, legal name, used for contracts and other formal situations, may be another....
- TrademarkTrademarkA trademark, trade mark, or trade-mark is a distinctive sign or indicator used by an individual, business organization, or other legal entity to identify that the products or services to consumers with which the trademark appears originate from a unique source, and to distinguish its products or...
External links
- California Business and Professions Code §§17900-17930 governing fictitious business names
- Oregon Revised Statutes Chapter 648 governing Assumed Business Names
- Revised Code of Washington Title 19.80 on Trade names
- Register Your Fictitious or "Doing Business As" (DBA) Name