When you're launching or running a business, your brand identity is one of your most valuable assets. Often, this identity is encapsulated in the name under which you do business – which may or may not be your formal legal business name. As an example, let’s assume you conduct business as “Brand Name”. Your incorporated name may very well be “Brand Name, Inc.”. However, for a variety of reasons, your entity name may be something entirely unrelated (i.e., “ABC, Inc.”). If you’re using a name other than your incorporated name, it's known as an "assumed name," commonly referred to as a ”doing business as” or DBA name. In addition to consider applying for federal trademark protections, your business should also consider registering any assumed names in the states in which you are conducting business, for the following reasons.

Compliance with Legal Requirements

First and foremost, registering your assumed name is not optional in many states—it's a legal necessity. Many jurisdictions require any business operating under a name that's different from their legal, registered name to file a DBA. This isn't just bureaucratic red tape; it's a measure designed to foster transparency in the business environment, ensuring that consumers and other businesses can identify the real party in charge of a business entity.

Create Notice and Public Trust 

When you register your assumed name, it becomes a matter of public record. This openness helps to build trust with your customers, as they can verify your business operations are legit, and feel confident that they know with whom they are doing business. It also meets certain legal notice requirements, helping to reduce accusations of fraud or bad faith.

Claim Your Unique Identity

Registering your assumed name helps you secure your unique identity in the market, preventing others in your state from registering the same name (but not similar names), and allowing your business to engage with clientele under a preferred brand name. However, registering a DBA does not create trademark rights so additional measures (like filing a federal trademark application) may be desired to further protect and enforce the business’s trademark rights.

Banking Made Simple

Banks typically require proof of registered DBA before opening a business account under the assumed name. For existing business entities that later change their operating name (but not their incorporated name), or create a separate division of their company that operates under a different brand name, banks will also typically require a DBA to be recorded prior to accepting customer checks for deposit in the company’s account.  Further, it’s a fundamental step in separating your personal and business finances, which is not only wise for taxation and accounting but also critical for personal liability protection. 

Engage in Contracts and Legal Proceedings

With a registered assumed name, your business can enter into contracts, file lawsuits, or be sued under the DBA. This official recognition is integral for legal protection and allows you to conduct business transactions seamlessly under your brand name, giving a clear and professional impression to partners, suppliers, and customers alike.

In conclusion, an assumed name is more than just a label by which customers know you—it’s your introduction in the market, a promise of what your business stands for, and a beacon for attracting your target audience. Registering your assumed name safeguards your business interests, enhances your market presence, and fosters a stronger connection with your customers. Please contact the authors if you need help creating your company, registering an assumed name or protecting your business brand.