For many entrepreneurs, operating a business under a name different from their legal name is a crucial step for branding. This is where a DBA (Doing Business As), or what Alabama refers to as a “Trade Name,” comes in. Filing a DBA allows you to establish a brand identity without forming a new legal entity.
In Alabama, a DBA is required if you operate your business under any name other than your own legal name or your company’s registered name. This practice promotes transparency for customers, banks, and state agencies.
This guide will walk you through the unique process, costs, and key requirements for filing a DBA in Alabama. A notable aspect of the state’s procedure is the requirement to use your chosen name before you can officially register it.
What Is a DBA in Alabama?
In Alabama, a DBA (Doing Business As) is officially called a “Trade Name.” It allows a business to operate legally under a name that’s different from its owner’s legal name. For example, if Sarah Miller is a sole proprietor but wants to run her business as “Magic City Marketing,” she would need to register a Trade Name.
A crucial point to remember is that a Trade Name isn’t a business entity. It doesn’t provide the liability protection that comes with forming an LLC or a corporation. Instead, it’s simply a registration of a name for branding and transactional purposes.
You may need to register a Trade Name in Alabama if you:
- Want to build a brand: Use a name that’s more memorable or professional than your legal name.
- Run multiple ventures: Manage different businesses under a single LLC or sole proprietorship.
- Require a business bank account: Many business banks require proof of your Trade Name registration to open a business account.
Filing a Trade Name in Alabama is a simple and cost-effective way to establish your business identity and credibility.
Who Needs to File a DBA in Alabama?
In Alabama, filing a DBA (or “Trade Name”) isn’t always a strict legal requirement, but it’s highly recommended if you plan to operate under a name other than your legal one. Registering your Trade Name ensures public transparency and allows you to use your chosen name for branding, banking, and official business activities.
You should consider filing a DBA in Alabama if you are:
- A Sole Proprietor: If you are running a business under any name other than your full legal name, you should file a DBA. For instance, if John Smith sells custom furniture as “Smith Woodworks,” he should register a Trade Name.
- An LLC or Corporation: Even if your business is a legally registered entity, you will need a DBA if you want to operate a different brand or division name. This is common for companies that have multiple product lines or ventures.
- A Franchisee: If you’re a franchisee, you’ll likely need to register a Trade Name to operate under the franchise’s brand name.
In Alabama, the process is unique because you must be able to show proof that you have already been using the name before you can register it. While not legally mandatory in every case, filing a DBA is the best way to protect your brand and ensure your business name is legally recognized.
Step-by-Step Process to File a DBA in Alabama
Filing a DBA (Trade Name) in Alabama is a process handled at the state level by the Alabama Secretary of State’s office. The process is unique in that you must use the name before you can register it.
Check Name Availability
Before you start using the name, you should search the Alabama Secretary of State’s business entity records to ensure your desired trade name isn’t already in use. Although a registered Trade Name doesn’t grant exclusive rights, it’s a good practice to avoid conflicts.
Start Using the Trade Name
Alabama law requires you to demonstrate that you are already using your chosen name in commerce before you can register it. You must have at least three “specimens” that show the name in use. Acceptable specimens include:
- Business cards
- Brochures or flyers
- Website or social media pages
- Advertisements (print or digital)
- Invoices or receipts
Complete the Application
Fill out the Application to Register or Renew Trademark, Service Mark, or Trade Name in Alabama. This form is available on the Alabama Secretary of State’s website. The form will ask for your desired name, the date you first used it, a description of your business, and the names and addresses of the owners.
File the Application and Specimens
Submit the completed and notarized application, along with your three specimens and the required filing fee, to the Alabama Secretary of State. You can file either online or by mail.
Pay the Filing Fee
The filing fee for a Trade Name in Alabama is $30. If you file online, there may be a small additional processing fee.
Manage Your Alabama DBA
Unlike some other states, an Alabama Trade Name isn’t perpetual. It’s valid for five years from the date of filing. To continue using the name, you must file a renewal application and provide one specimen showing current usage.
Costs & Timeline of Filing a DBA in Alabama
When filing a DBA (Trade Name) in Alabama, the costs and timelines are consistent as the process is handled at the state level by the Alabama Secretary of State’s office. A unique aspect of Alabama’s process is that you must be able to provide proof of using the name before you can register it.
Filing Fees
The filing fee for a Trade Name application is a flat $30, though online filings may incur a small additional processing fee. The Trade Name application requires notarization, which may have an associated cost, and a publication requirement may apply depending on the business structure.
Processing Times
The processing time for a Trade Name application can vary. It’s often quicker if you file online, but you will still need to gather the required specimens (proof of use) beforehand.
Renewal Timeline
An Alabama DBA isn’t perpetual. Your registration is valid for five years from the date of filing. To maintain your registration, you must file a renewal application and pay the $30 renewal fee within six months of the expiration date.
Renewing or Canceling a DBA in Alabama
Alabama’s rules for renewing and canceling a DBA are straightforward and handled at the state level.
Renewal
Unlike Georgia’s indefinite registration, an Alabama DBA (Trade Name) is valid for five years from the date of filing. To renew, you must submit a renewal application and a single specimen showing continued use of the name. The renewal fee is $30. It’s important to file for renewal within six months of the expiration date to avoid losing your registration.
Cancellation
If you no longer wish to use your DBA, you can formally cancel it by filing a Statement of Cancellation. This form must be submitted to the Alabama Secretary of State’s office. You can find the form on their website and file it by mail or in person.
There’s a $30 filing fee to cancel your registration. While not legally required, canceling a DBA is a good practice to maintain accurate public records and avoid potential confusion.
Note: To officially file your assumed business name, you must submit the necessary documentation using the Official Trade Name Application Form to the Alabama Trade Name Registration Division.
Common Mistakes to Avoid When Filing a DBA in Alabama
Filing a DBA (Trade Name) in Alabama is a simple process, but a few unique requirements can cause delays if overlooked. Here are the most common mistakes to steer clear of:
1. Not Providing Proof of Use
Alabama requires you to show that you’re already using your chosen name in commerce before you can register it. Failing to provide at least three specimens (e.g., business cards, advertisements, invoices) with your application will result in its rejection.
2. Filing a Trade Name When You’re Not a Business Entity
Sole proprietors and partnerships can register a trade name in Alabama. Trade name registration is not limited to business entities like LLCs and corporations. In Alabama, sole proprietors and partnerships can file a trade name to operate under a name different from their own.
3. Assuming a DBA Provides Legal Protection
A Trade Name registration in Alabama is simply a name registration. It doesn’t create a separate legal entity or offer any liability protection for your personal assets. If you want to protect your assets from business debts and lawsuits, you will need to form an LLC or corporation.
4. Not Getting Your Form Notarized
The Alabama Trade Name application requires the owner’s signature to be notarized. Failing to do so will result in the rejection of your filing.
5. Forgetting to Renew Your DBA
Unlike Georgia’s perpetual DBA, an Alabama Trade Name registration is only valid for five years. Forgetting to file a renewal application and pay the fee will cause your registration to lapse, and you will lose the rights to the name.
FAQs About Filing a DBA in Alabama
Filing a DBA in Alabama involves a unique, state-level process with specific requirements. Here are answers to some of the most common questions entrepreneurs ask:
Do I Need a DBA If I Already Have an LLC?
Yes, if your LLC operates under a name different from its legal one. For example, “Alabama Services LLC” doing business as “Birmingham Event Planners” would need to register a trade name to legally use the latter.
Can I File a DBA Online in Alabama?
Yes. The Alabama Secretary of State’s office offers an online filing system for Trade Names. This is often the fastest and most efficient way to submit your application. You can also file by mail.
How Long Does DBA Approval Take?
The processing time for a Trade Name application can vary, but it typically takes a few business days once submitted. The unique part of Alabama’s process is the time it takes you to gather your “specimens” of use before you can even file.
How Long Is a DBA Valid in Alabama?
An Alabama DBA (Trade Name) is valid for five years from the date of filing. To continue using the name, you must file a renewal application and provide a single specimen showing continued use.
Can Multiple DBAs Be Linked to One Business?
Yes. A single business entity can register multiple DBAs to operate different brands or service lines. Each DBA requires a separate filing with the Alabama Secretary of State and a separate filing fee.
Final Takeaway
Filing a DBA (Trade Name) in Alabama is a unique process that allows you to operate under a new business name without the need to form a new legal entity. The requirement to use the name first ensures that the name is actively in use before it is registered.
Whether you’re a sole proprietor, freelancer, or an LLC seeking to launch multiple brands, registering a DBA provides a professional identity and legal recognition for your business in the Yellowhammer State. Just remember to renew your registration every five years to keep your name active.
