Starting a business is a major milestone for any entrepreneur. When you establish a company, you will need to choose a name for your corporation. However, the legal name of your business might not be the same name you want to do business as.
A doing business as (DBA) name is a way to operate your business without using your legal name or your company's registered name.
At Francis Lawyers, located in Ottawa, Ontario, our team has years of experience in handling business formation cases, and we're ready to help you understand what a DBA is and how you can effectively file for one.
What is a DBA?
A DBA is an official registration that allows you to do business under a different name from your personal or registered entity's name. It stands for "doing business as" and is also referred to as a fictitious business name, trade name, or assumed name.
This name could be a more descriptive title, a catchy phrase, or simply something that resonates better with your target market. For instance, if you registered your corporation as “Smith and Co. Investments Ltd.” but want to advertise your services as “Smith Financial Services,” you would need to file for a DBA.
A DBA is often used by sole proprietors, partnerships, and corporations to conduct business under a different name without going through the process of legally changing the company's name.
Reasons to File for a DBA
Utilizing a DBA offers several advantages for your company and business interests. Some compelling reasons why you might consider filing for a DBA include:
Enhanced branding: You can select a name that reflects the products or services you offer more closely while still protecting your original business name. A strong brand can attract more customers and contribute to the overall success of your enterprise.
Legal protection: Filing for a DBA allows you to create an exclusive right to use that name in your locality. This can prevent other businesses from using the same or similar names, providing you with a certain level of brand protection.
Business expansion: As you grow your business and potentially expand into new markets or product lines, a DBA can provide flexibility to operate under a different name without establishing a new business entity.
Banking requirements: Many financial institutions require a DBA filing to open a business bank account. Having a separate trade name can also simplify the process of applying for loans or lines of credit.
Increased professionalism: Offering services under a DBA can enhance your professional reputation. Potential clients may perceive you as more established and credible when operating under a more specific or better-suited name than your registered business name.
Protect your personal identity: By using a DBA, you can keep your legal name private and avoid using it in public records and marketing materials.
How to File for a DBA in Canada
In Canada, filing for a DBA involves several steps. While the process might vary slightly depending on the province, the general requirements for applying for a DBA in Ontario include the following.
1. Conduct a Name Search
Before you file for a DBA, conduct a name search to make sure your desired name is available and not already in use by another business. This step is crucial as it prevents potential legal disputes or confusion in the future. We recommend using the Canadian Corporate Registry or provincial systems to check for your name's availability.
2. Choose the Appropriate Registration
Once you verify that your desired name is available, you will need to register it. Depending on your business structure and location, you may need to register the assumed name with one or more government entities.
In Ontario, you will need to register your DBA under the Business Names Act (BNA) with the Ministry of Government and Consumer Services. You can typically register through the ServiceOntario Business Registry.
The process typically involves completing a "business name registration" form, which can be completed online, via mail, or in person. You may also need to provide your business number and details about the type of business activity you're undertaking.
3. Pay the Required Fees
Filing for a DBA usually comes with a nominal fee. In Ontario, this fee typically ranges between $60 and $300, depending on the type of business and any additional services or expedited processing options. You should make sure you have the proper payment methods available, as payment methods can differ depending on the filing option selected (online, in person, or via mail).
4. Complete the Registration
After submitting your application and paying the fee, you will receive confirmation of your DBA registration. It’s wise to keep this documentation safe, as you may need to present it when applying for financial accounts or complying with local or federal regulations.
5. Renewing Your DBA
In Ontario, DBAs have to be renewed periodically—typically every five years. Be sure to check the renewal requirements and deadlines to maintain your trade name protections. Consulting with an experienced corporate lawyer can help you stay ahead of all legal deadlines and make sure your business obligations are up to date.
Considerations After Filing for a DBA
Once you've successfully filed for a DBA, there are several additional considerations you should take into account. These include:
Updating your documents: Update any marketing materials, business cards, contracts, and official documents to reflect your new DBA. Doing so helps establish your brand in the eyes of your clients and stakeholders.
Tax implications: Depending on your business structure, you may be required to report income generated under our DBA separately. Consulting with an accountant or tax professional can help you make sure you comply with all relevant tax obligations.
Trademark search: If you anticipate that your DBA will be a significant part of your brand strategy, you may want to conduct a trademark search. Registering a trademark can offer additional protection and help safeguard your assumed name within the marketplace.
Contact an Experienced Real Estate Lawyer
At Francis Lawyers, our dedicated team is well-versed in business formation law and the DBA registration process. We understand filing for a DBA can seem complicated, but our dedicated team is here to guide you every step of the way.
Whether you need to conduct name searches, file the necessary paperwork, or provide ongoing legal support for your business as it expands, we are ready to assist.
If you need help understanding DBAs or how to effectively file for one, reach out to us to schedule a consultation. Located in Ottawa, Canada, we serve clients throughout the Ottawa area including Gatineau, Chelsea, Dunrobin, Kinburn, Arnprior, Munster, Kempville, Ficko, Edward, and Cumberland Ward. We also serve clients in the Toronto area.