Delaware DBA

Everything You Need to Know About DBAs in Delaware

In Delaware, Doing Business As (DBA) names are called Trade Names. Different name, same deal. Here’s what you need to know about operating under a different business name in Delaware:

What is a Delaware DBA?

A Delaware DBA (doing business as) name is any name a business operates under that’s not the business’s legal name. Some states refer to DBAs as trade names, assumed names, or (as with Delaware) fictitious names.

Businesses (like LLCs or corporations) often use DBAs to expand their business, brand, or product line without creating a new entity. Businesses like sole proprietors and general partnerships often establish DBAs to better market their business and services rather than doing business under their human name(s).

What are the benefits of using a DBA?

While most companies (especially those registered with the state) choose to conduct business under their legal name, utilizing a DBA can be beneficial in some cases.

Here are a few reasons why Delaware businesses use a DBA:

1. You’re currently a sole proprietor or general partnership: Without a DBA, sole proprietors and general partnerships (unless otherwise noted in a partnership agreement) must use their human name(s) as their business name. For example, suppose Becky Bennett (a sole proprietor) offers dog training services. In that case, the legal name of her business will be “Becky Bennett.” But, with a DBA, Becky can operate under “Good Dog Academy.”
2. You’re rebranding the business or launching a new product line: Registering a DBA can be an easy and cost-effective way to rebrand your business or launch a new product line. How? Let’s say your LLC (Grace Glowing) sells handmade scented candles. But you’re looking to expand into vintage clothing. Instead of going through the hassle of establishing a new business, you can sell clothing under the DBA “Timeless Fashion” and continue selling candles under Grace Glowing.
3. You want to conduct business under your domain name: Sometimes, companies will decide to operate under their domain name–typically because the business’s legal name wasn’t available as a domain or the domain name is easier to remember. For example, “malleycustomwickerchairs.com” is a long domain, so you might go with “malleychairs.com” and start doing business under the name “Malley Chairs.”

Delaware DBA vs. Starting a New Business

Registering a DBA is different from forming a legal entity such as an LLC or corporation. A Delaware DBA is like a nickname for your business that gives you the flexibility to operate under a name different from your LLC or corporation’s legal name–i.e., the name listed on your state formation documents.

Because establishing a Delaware DBA is different than forming a new business, there are limitations as to what you can do under your DBA. For example, DBAs don’t offer business owners liability protection like an LLC or corporation. So, if you’re a sole proprietor or general partnership, you (the human) will still be liable if your business faces legal action.