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When you form a corporation or LLC, you choose a business name other than your name as part of the process. If you’re operating your business as a sole proprietorship, you have the option of using your name as the business name or choosing a DBA name.

A DBA doesn’t confer any legal protections, but it enables you to operate under an assumed name, which may be advantageous for branding purposes. Another benefit is that when you have both a DBA and EIN, most banks will allow you to open a separate business bank account and are more likely to consider lending you money for your business.

Depending on the state or locale in which you do business, you may need to register your DBA with the secretary of state or another state agency. Alternatively, you may need to register with the county or municipality where you do business.