When a business operates under a name different from its official, registered legal name, it uses a “Doing Business As” (DBA) designation. This assumed name provides flexibility in marketing while maintaining the required legal structure. Formal business correspondence requires precision when referencing the DBA to ensure clarity and professionalism. This guide details the correct formatting and placement of the DBA in written communications.
Defining What a DBA Is
A DBA, or “Doing Business As,” is a registered trade name or assumed name that a business uses publicly. It serves primarily as a marketing tool, allowing a company to operate under a descriptive name that differs from its formal legal name listed on its organizing documents. Registering a DBA does not create a new legal entity; it is merely an alias for an existing structure, such as a sole proprietorship, partnership, LLC, or corporation. This registration provides transparency, enabling customers and regulators to identify the true, legally responsible party.
Businesses register a DBA with the appropriate state or local government office to legally use the alternative name for banking and commercial transactions. This process ensures the public can trace the operational name back to the individual or entity that holds the ultimate legal liability.
Standard Formatting and Placement
The most widely accepted format for the designation in formal correspondence is the lowercase, slashed abbreviation, “d/b/a.” This style is frequently favored in legal documentation because the slashes clearly separate the letters and emphasize the term’s function as a descriptor. An alternative, also commonly used, is the all-caps version without slashes, written as “DBA.” Consistency is necessary, so the chosen style must be maintained throughout all company correspondence.
Proper placement dictates that the DBA must immediately follow the full, official legal name of the individual or entity. A comma separates the legal name from the designation, which is then followed by the assumed business name. This structure is required in the return address of the header if the assumed name is used.
The full legal name, the DBA designation, and the assumed name should be included in the signature block of formal documents. The signature block clarifies who is signing and in what capacity, linking the legal entity directly to the operational name.
Examples of Proper Usage
Sole Proprietorships
When a sole proprietor uses a DBA, the structure emphasizes the individual’s personal liability. The individual’s full legal name must appear first because the person and the business are legally one and the same. A properly formatted example is “Jane Smith, d/b/a Smith’s Cupcakes” in the letterhead or signature area.
Corporations and LLCs
For formally registered entities like Corporations and Limited Liability Companies, the legal structure is separate from the owner. The entity’s complete registered name, including the required corporate suffix, must precede the DBA designation. A correct presentation reads, “Acme Solutions LLC, d/b/a The Tech Hub.”
Using the DBA allows a corporation to operate several distinct brands without creating a new legal subsidiary for each one. Formal correspondence would be structured as “Global Holdings Inc., d/b/a The General Store” to maintain legal precision while using the familiar brand name.
Distinguishing the DBA from the Legal Entity Name
Understanding the difference between the DBA and the legal entity name is necessary for maintaining liability protection. The legal entity name is the formal, registered designation filed with the state, which is the only name under which the business can legally enter into binding contracts. The DBA acts merely as an operational or trade name used for public interaction.
In formal correspondence, especially invoices, legal notices, and contractual documents, the legal entity name must always be prominently featured. Consistently neglecting to use the legal name and its suffix (like “Inc.” or “LLC”) can lead to a court disregarding the corporate structure. This concept, known as piercing the corporate veil, strips the owners of their personal liability protection. Therefore, the DBA should only be used as a descriptive identifier alongside the official, registered name.
Common Errors to Avoid in Business Correspondence
Several common errors undermine the professionalism and legal clarity of correspondence.
- Inconsistent formatting: Avoid switching between “d/b/a,” “DBA,” or “doing business as” within the same correspondence. Maintain a single, chosen format throughout all official documents.
- Reversing the order: Never place the assumed name first, such as “Smith’s Cupcakes d/b/a Jane Smith.” The legal name must always lead the designation.
- Unnecessary punctuation: Avoid over-capitalization of the DBA name itself or the use of quotation marks around the designation.
- Omitting the corporate suffix: Always include the full legal name and required entity type, such as “LLC” or “Inc.” For example, use “Acme Solutions LLC, d/b/a The Tech Hub,” not “Acme Solutions d/b/a The Tech Hub.”