When a company, organization, or individual desires to conduct business under a name other than their own, most U.S. states mandate that entity to file a "DBA." In other words, Rick Nate's lawn mowing business, "Rick's Best Cuts," would file that name as its DBA. Then, legally, Rick can advertise his business as "Rick's Best Chocolates." Usually, your DBA is needed to open a business bank account, advertise, accept payments and create contracts. 

Registering your DBA can often deter other competing area companies from using that same name. In addition, corporations can create more than one DBA without creating separate business entities.

Sole Proprietors are a single business type for which DBAs make a lot of sense. But, unfortunately, Rick's internet-based company, "Worldwide Knife Exporters," does not betray the fact that the establishment is just him working alone out of his house.

There are many instances wherein a business needs to file a DBA. In addition to when a business owner doesn't want their name on the business name, there are other times when filing a DBA is necessary:

• Sometimes, a DBA is required by the owner's or the company's bank, especially when a sole business owner wants to open a business bank account.
• There are also instances when a client requires a contractor to file a DBA when bidding to get a project.
• If a company is expanding its business to areas not covered by the current business name or operations, a DBA may be required. For example, if the present name it carries is "Jane's Wedding Couture" and it wants to expand its reach to include many other types of party clothes, then it will need to file a DBA in such a way that customers will know that it isn't just all about wedding gowns.

Specific rules must apply to DBA names: You can't obtain a DBA for something illegal (e.g., "John's Cocaine Emporium"). The name cannot make false claims (e.g., "Rick's U.S. Department of Defense"). When you start your company they will be registered under the names of the owners.