A DBA lets you legally operate under a business name, while a trademark protects a name, logo or slogan from being used by others for similar goods or services. A DBA is a state or local filing that costs about $5 to $150. A federal trademark is registered with the USPTO, and the base application fee is $350 per class of goods or services.
You’ve got many decisions to make when starting a business, one of the most important being whether you should register a DBA, file a trademark or both.
Even though both can serve as your brand’s signature, there are key differences. You use one to trade under a name and the other to protect it.
DBA vs. trademark at a glance
| Item | DBA | Trademark |
|---|---|---|
| What it does | Lets you operate under a business name | Protects a brand name, logo or slogan |
| Where you file | State or local office | U.S. Patent and Trademark Office (federal) |
| Cost | About $5 to $150 in state fees | $350 per class (USPTO base application fee) |
| Exclusive rights | None | Nationwide rights for your goods or services |
| Required? | In most states, if you use a name other than your legal name | No, but it’s the main way to protect a brand |
| How long it lasts | Renewal every 2 to 10 years in most states | Indefinitely, with maintenance filings between years 5 and 6, then every 10 years |
What is a trademark?
A trademark identifies the source of goods or services and distinguishes them from others in the same marketplace.
For example, Nike identifies its goods with the swoosh, and Converse with its star inside a circle. Both are logos and trademarks.
You start building trademark rights when you use a mark in business. Registering it with the United States Patent and Trademark Office (USPTO) gives you nationwide rights and makes it much easier to stop others from using a confusingly similar mark, which is called trademark infringement.
Anyone can apply to register a trademark, but the USPTO examines each application and refuses many of them (see common trademark application mistakes).
Benefits of having a trademark
Consumers trust products and services with recognizable trademarks, and some brands become part of everyday language. People ask for super glue, not cyanoacrylate, which shows how strong a brand name can become.
A registered trademark brings other benefits too.
- Brand protection: no one else can use your mark, or one confusingly similar to it, to promote similar products or services.
- Exclusive rights: a federal registration protects your brand assets, such as a business name or logo, throughout the U.S.
- Business value: a well-known trademark can be a valuable asset, for example when you sell franchises.
- Reputation: your trademark represents who you are and what you stand for, which builds customer trust.
- The ® symbol: only registered marks can use the ® symbol, which warns others that the mark is protected.
- Legal remedies: you can take action against infringement in federal court, and you can record your registration with U.S. Customs and Border Protection to help stop counterfeit imports.
What is a DBA?
A DBA, or “doing business as,” is a registered name you can use for your business instead of your legal name.
Sole proprietors often use an industry-relevant DBA instead of their own name so customers understand what they do. For example, Anna Wood, a plumber in Miami, could use “Bay Side Plumbing,” and Joe Mochi, a cleaner in New York, could use “Manhattan Maids.”
A DBA helps sole traders like Anna and Joe in several ways. They can use a more professional-sounding name, open a business bank account under it, and market the business under one consistent name.
LLCs and corporations also use DBAs when their entity name doesn’t suit a product or service. SpaceX, for example, is easier to remember than “Space Exploration Technologies Corp.”
A DBA doesn’t give you exclusive rights to a name in any state. Even if you register one, someone else may be able to use the same name, or register it when forming an LLC or corporation.
To secure your name nationally and claim your logo or slogan, you need to register a trademark with the USPTO.
Benefits of having a DBA
The key benefit of a DBA is that you can legally use a business name without forming an LLC or corporation under that name.
For example, if Anna operates under a business name she hasn’t registered in a state that requires it, she could face fines, and in some states she couldn’t sue under that name until she registers it.
A DBA has several other benefits.
- Easy to get: in most states, you search the name, file a short form with the state or county, and pay the fee.
- Low cost: state filing fees range from about $5 to $150, depending on your state (see DBA costs by state).
- Better branding: you can use a market-relevant name instead of your legal name.
- Privacy: a DBA helps sole proprietors and partners keep their personal names off advertising materials.
- Flexibility: LLC owners expanding into other markets can use several DBAs instead of forming new entities.
- Business banking: a DBA lets you open a bank account in your business name, which adds credibility with clients.
What’s the difference between a DBA and a trademark?
Knowing the difference between a trademark and a DBA helps you protect your business’s brand and reputation.
A DBA lets you use a business name other than your own or your company’s registered name, but it gives you no exclusive rights. A trademark gives you exclusive rights to your business name, logo, slogan or other brand assets for the goods or services you list.
The takeaway is that a trademark protects your name, but it isn’t how you register a business name. To operate under a name, you form a business entity like an LLC or register a DBA.
Here are some other differences.
- Requirements: a trademark application is more involved than a DBA filing and is examined by the USPTO
- Cost: a trademark costs $350 per class in USPTO filing fees, while a DBA can cost as little as $5 in state fees
- Exclusivity: a trademark gives you exclusive rights to your name or logo for your goods or services; a DBA does not
Do DBAs need a trademark?
A DBA doesn’t need a trademark to be valid, but you need one to stop others from using the name. Searching the USPTO database before you file also helps make sure your DBA doesn’t infringe someone else’s trademark.
Can you trademark a DBA name?
Yes. If you use your DBA as a brand name for goods or services, you can apply to register it as a trademark.
To register it, the name must be distinctive and not confusingly similar to an existing mark, you need to choose the right trademark class, and you must use it, or intend to use it, to identify your products or services.
Which one do you need?
Now that you know the difference between a DBA and a trademark, your next step is to choose the one that suits your situation. A DBA may be all you need to start trading under a business name.
A DBA might suit you now, but a trademark could secure your brand’s future. Many businesses end up with both. You can also see whether to file a trademark or form an LLC first.
FAQ
No. A DBA lets you legally operate under a business name in your state. A trademark gives you exclusive rights to a name or logo for your goods or services nationwide.
No. A DBA doesn’t give you exclusive rights, so others may use the same or a similar name. A federal trademark registration is the main way to protect a brand name.
A federal trademark application costs $350 per class of goods or services at the USPTO. A DBA costs about $5 to $150 in state fees, depending on the state.
Yes, if you use the DBA as a brand for goods or services and it isn’t confusingly similar to an existing trademark. You apply with the USPTO and choose the right class.