Name recognition is crucial to a company's success. Therefore, it is important to make the name you choose official. Name acknowledgement is achieved when the business name is used in all transactions, from marketing and sales to collecting money. Many business owners choose a name other than their given personal name in order to establish name recognition and to identify goods sold or services provided. Unless you operate a corporation or LLC, you will not be able to receive money or hold a business bank account under a business name until you have filed, and, when applicable, published what is commonly referred to as a DBA.
A business that operates under any name other than its owner's personal name, or the name that was filed with the state, is legally required to file a DBA "doing business as" statement. The DBA statement may also be referred to as a "fictitious business name," "trade name" or "assumed name." In the case of corporations or LLCs, the statement can be used to inform the public of the previous legal company name that existed. With sole proprietorships or partnerships, a DBA statement informs the public of the owner's personal name or the name under which they are conducting business.