Trade Names (DBA) in Washington: Do You Need One?

If you want your business to go by a name other than your legal name, you'll need a trade name. In other states this is often called a DBA, short for "doing business as."

What is a trade name?

A trade name is any name you use to do business that isn't your exact legal name.

• If you're a sole proprietor named Maria Lopez and you call your business "Evergreen Cleaning," Evergreen Cleaning is a trade name.
• If your LLC is "Lopez Ventures LLC" and you market yourself as "Evergreen Cleaning," that's also a trade name.

When does Washington require one?

Washington requires you to register a trade name with the Department of Revenue's Business Licensing Service whenever you do business under a name that isn't your full legal name or your entity's full registered name. You can add a trade name when you first apply for your business license or add it later.

Does a trade name protect me?

No. This is one of the most common misunderstandings. A trade name:

• Does not create a separate legal entity
• Does not provide liability protection
• Does not give you trademark rights or exclusive use of the name everywhere

It simply tells the public who is behind the business name. If you want liability protection, you need an entity such as an LLC.

Why a trade name still matters

• Banking. Customers may write checks to your business name. Your bank needs to see that the name is registered to you before it will deposit them.
• Marketing flexibility. An LLC can run more than one brand, each under its own registered trade name.
• Compliance. Operating under an unregistered name can cause problems with licensing and contracts.

How to register

1. Search Washington's business records to make sure the name isn't already in use
2. Add the trade name to your business license application (or file an update)
3. Pay the trade name fee
4. Give your bank a copy of the updated license so it can add the name to your account

Tips for choosing a name

• Make sure the domain name and social handles are available
• Avoid names that could confuse customers with an existing business
• Consider a federal trademark search if you plan to grow the brand

The bottom line

A trade name lets you use a brand name legally, but it isn't a substitute for an LLC. Register it before you print signs, cards or invoices with the new name.

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Need help getting this right? TRIG Bookkeeping & Tax Services helps new business owners in Washington with company registration, monthly and annual bookkeeping, and government compliance. Contact us to talk about your business.

This article is general information, not legal or tax advice for your situation. Tax rules and fees change, so confirm current details with the IRS, the Washington Department of Revenue, or a qualified professional.