Do You Have to Renew a DBA?

How do you renew a DBA?

A DBA or “doing business as” name is used by many different businesses to change the name they transact business under. If you’re a sole proprietor, you might apply for a DBA in order to do business under a name other than your own personal name. Other businesses might want to operate under a different name than they registered their business. They can do this with a DBA. 

If your state requires DBA registration, it likely also requires that you renew your DBA. Here are some general steps you might follow to renew your DBA:

1. Go to your state’s Secretary of State’s website or the county clerk’s website for the county where you’ll be doing business. 
2. Find and fill out the DBA renewal form.
3. Pay the required fee. This should cost less than the initial registration fee.
4. Get notarization, if required.

Renewing your DBA name should be less costly and even simpler than when you initially filed for the DBA.

How do you renew a DBA that expired?

It’s possible that your DBA may expire without you realizing it. Some states offer a grace period for renewing your DBA, and if you renew within the grace period, you’ll follow the typical renewal steps.

If your state doesn’t have a grace period or you’re outside of the grace period, then your DBA has expired and essentially doesn’t exist anymore. You’ll likely need to re-register your DBA, following the initial application process like you did the first time. This will require conducting a business name search, filing an application with the county clerk's office or Secretary of State, and paying any required fees.

Why is it important to renew your DBA?

The most important reason to renew your DBA is the continued right to conduct business under that name. As soon as your DBA expires, your business name no longer belongs to you and becomes available for anyone to use. To renew an expired DBA, you’ll need to run a business name search and apply to use the business name, as long as no one else has claimed it in the interim.

If you do lose the business name to someone else, it will mean you need to find a new business name and redesign all of your branding. You will not be allowed to continue using the business name if someone else claims it.

Operating a business under a name that is not registered can also incur fines and penalties in some jurisdictions—even if that name isn’t being used by anyone else. No longer being able to use your original business name can also affect legal proceedings and contracts. If that’s no longer your legal business name, then you can’t execute those agreements.

Another reason it’s important to renew your DBA is that the cost of renewing an expired DBA is generally higher than renewing. Most states that make you pay for a DBA charge a higher filing fee for the initial application than for renewing an existing DBA. If you don’t renew on time, you’ll likely need to re-apply and pay the higher filing fee.

How long does it take to process a DBA filing?

The processing time to apply for or renew a DBA will depend upon the state or county where you’re applying. In general, you can expect the initial application process to take a few days to a few weeks. 

Renewing a DBA should take less time and shouldn’t disrupt your business, as long as you’re renewing before it’s expired.

What are the benefits of using a DBA?

There are many reasons a business entity might use a DBA or “doing business as” name. Some of the benefits of using a DBA include:

• Increase professionalism. For sole proprietors or general partnerships, a DBA can add a layer of professionalism so that your registered business name isn't your personal, legal name.
• Protect privacy. Many business owners who are sole proprietors also use a DBA to create a layer of privacy, so they don’t have to put their personal name on legal or financial documents.
• Operate multiple brands. A DBA can be used to operate multiple brands under an existing business name.
• Localize your brand. You can use a DBA to localize your business name if you expand to other regions or states.
• Improve branding. You may have chosen a business name that you no longer like or is too long and complicated. A DBA can be used to shorten the name or choose a more memorable business name. 
• Open a business bank account. Many banks require a business name or DBA to open a business bank account.

FAQs

What is a DBA?

DBA is short for doing business as. It allows businesses to operate under a business name that’s different from the one they registered their business under. This is especially relevant to sole proprietors because their business operates under their personal name.

A DBA might also be called a fictitious business name or an assumed name.

How many years is a DBA good for?

How long a DBA lasts will depend upon the state where it’s registered. Each state has slightly different rules, but the average DBA lasts for 5 years. Other states offer DBAs that last 10 years or never expire. Some states require that you renew your DBA each year. 

Who needs a DBA?

For the vast majority of businesses, getting a DBA is a choice. A DBA can benefit business owners, especially sole proprietors, but making it possible to use a different name than the one their business is registered under. Most states require a sole proprietor or general partnership to register a DBA if they plan to operate under a business name that is different from their own legal name.

How much does a DBA cost?

The cost of a DBA ranges and depends upon the state where you’re filing to get your DBA. Most states charge a small filing fee when you apply. This fee can range from $10 to $100 and is determined by the state or county in which you’re applying for your DBA.