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Are Sole Proprietorships & DBAs the Same?
by David Dickinson, BOL Guru
Guru Bio

Question:  Are sole proprietorships and DBAs the same?

Answer:  No, Sole Proprietors (SP) are businesses that are owned by a single owner without the legal status of a partnership, corporation, etc. State law may also allow a husband and wife who own a business to operate it as a SP. "DBA" stands for "Doing Business As". Any entity can have a DBA. A DBA is just another trade name for a business. For instance, XYZ Corporation may operate as "ABC Company" - a DBA. This is more common than you realize. While it is common for SP to operate as a DBA (Joe Smith DBA Smith Plumbing), they are not the same.

First published on BankersOnline.com 3/26/07




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