If you’re planning to start a business in Alabama using a specific name, you may need to register for a business name. This process is officially called a Trade Name registration in Alabama but is more commonly referred to as registering a DBA, which stands for “Doing Business As.”
Related: Starting a Business in Alabama Checklist
What is a Trade Name?
A trade name is a name under which a business operates that is different from the owner’s personal name (for sole proprietorships and partnerships) or the official name of the business entity (for corporations and LLCs). It allows businesses to conduct operations under a name that may be more marketable or relevant to their products or services.
Who needs to register for an Alabama DBA?
When a business wants to operate under a name other than its legal name, many states require it to register its new business name. In Alabama, this is optional for some types of business structures, but practically speaking, most businesses will register.
Sole proprietorships and partnerships are the most common entity to want to register a business name. These two entities are not entities at all. Instead, they are individuals doing business. Commonly, the legal name of a sole proprietor or partnership is the owner’s full first and last name. That works for many self-employed business owners; however, many want to operate under a distinct and brandable business name.
For example, if Carl Smith starts an inflatable rental business under his legal name, he doesn’t need to register. However, if Carl decides to name his business “Smith Bouncy Houses,” he will probably want to register.
Even though it’s optional, the reason a sole proprietorship and partnership in Alabama would consider registering their business name is because:
- This proves the business’s existence, which is necessary if your bank, merchant processor or vendors require one.
- There is some limited protection from other Alabama businesses registering the name.
Related: How To Form A Sole Proprietorship In Alabama
A corporation and Limited Liability Company won’t typically register for an Alabama DBA since a unique entity name is created during the entity formation process. However, some will want to register for a DBA if they have another business or brand name they want to operate in addition to the business’s legal name. This can allow multiple businesses to operate with the liability protection of an Alabama Limited Liability Company (LLC) or corporation without forming a new entity.
What are the steps to file a DBA in Alabama?
Step 1: Verify Name Availability
To register your DBA, you will first want to be sure the name you want is available. Before registering a business name, you will want to do an Alabama entity business search to verify that no other business is using it.
Step 2: Obtain the Trade Name Registration Form
After deciding on a name, you will want to either file online or download the Application to Register or Renew Trademark, Service Mark, or Trade Name form from the Lands & Trademarks Department of Alabama Secretary of State. This is the same form you would use to file a Trademark or Service Mark.
Questions on the form include:
- Applicant name
- Entity type (sole proprietorship, partnership, corporation, LLC, etc.)
- Office address
- Name of general partners (if applicable)
- DBA being registered
- Description of the goods, services, or business being provided under the business name
- How the name will be used in commerce
- Classification number (industry the business is in – see schedule in the form)
- Disclaimer (if applicable)
- Names of other entities that can use the name
- Date the fictitious name was first used
Three specimens must also be submitted showing how the name will be used in business. Specimens can be original or copies of materials such as business cards, brochures, flyers, labels, decals, ads, and other proof you have been operating under the name you are applying for.
The address to mail the form and payment is:
Alabama Office of Secretary of State
Trademarks Division
11 South Union Street, Suite 224
Montgomery, Alabama 36130
Step 3: Submit the Form
The Trade Name application form needs to be signed but should only be done in the presence of a notary public.
Once the form is filled out and notarized, send a check for the $30 filing fee payable to the Alabama Secretary of State.
Alabama DBA FAQs
How much does an Alabama Trade Name cost?
The cost to register a Trade Name in Alabama is $30 and is renewed every 5 years.
Are there any naming restrictions when filing an Alabama DBA?
In Alabama, banking-related words like Bank, Banking, Banc, Savings & Loan, etc., are not allowed unless the Alabama Banking Commissioner’s Office has previously granted approval. Insurance-related words are also not allowed, and words using a professional designation such as Engineer, Attorney, and Accountant are prohibited unless the business has professional licensing from the state.
Names that contain words similar to government agencies, such as the Department of Revenue, Treasury, FBI, etc., are also prohibited.
A Trade Name also can’t use a business entity suffix that is different from the type of entity. For example, a sole proprietorship can’t use the word LLC or corporation in its name.
Can someone use my business name after registering an Alabama DBA name?
While registering your Trade Name will keep someone else from registering the exact same name in Alabama, it does very little to stop someone else from operating a business under that name in other states.
If stopping others from using your business name is important, you can protect it through a federal trademark through the U.S. Patent & Trademark Office.
Learn more about trademarking a business name
Does a DBA need an EIN?
An EIN or Employer Identification Number (also informally called a business tax ID number) is a unique nine-digit number for which some businesses will register through the Internal Revenue Department (IRS). An EIN is required for partnerships, corporations, multi-member LLCs, or any business with employees.
Sole proprietorships and single-member LLCs without employees can use the owner’s social security number to identify the business.
There is no cost to get an EIN when registering directly from the IRS.
