- With a DBA, you can open and operate a business under a name other than your own. In other words, if your name is Monica Rodriguez and you are the legal owner of a new tanning salon, you can operate the business as "Bronze Goddess Tanning." If you do not have a DBA, you will have to operate the business using your real name, such as "Monica Rodriguez Tanning Salon."
- A corporation is a legal entity that is recognized as a distinct individual. A corporate name is normally different from the owner's name. Starting a business as a sole proprietorship, as well as obtaining a DBA to operate that business under a name other than your own, is less expensive than starting a corporation. Filing for a DBA is also usually much less complicated and consumes less time than the process of incorporating.
- Business owners often desire to open up a business checking account. This way, they can accept checks from customers or clients that are made out to the business instead of the business owner. It is a common practice of banks to require that the business owner presents her filed copy of a DBA registration certificate, or proof of filing, as a prerequisite to opening up the business checking account. With this account, the business owner can then write and cash checks with that business name.
- Once you obtain your DBA, businesses that follow yours may be discouraged from attempting to obtain a DBA using your business name, or a business name that is confusingly similar to yours. A crafty would-be competitor might attempt this to associate her fledgling business with a business that has a proven track record and established identity. Before registering a DBA name, some states require a business owner to do a name search, to see if the name is already taken or a similar name is being used. If your name is already registered, it may encourage that owner to choose a different name for her business, so that hers can be distinctly branded.
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